The goal of the Broadband investment guide, available in 22 languages, is to assist public authorities in formulating the important questions and to provide the conceptual framework and the information needed to make the right decisions meeting their needs. The idea is not to provide ready-to-apply recipes but to present a tool box in all thematic fields to be considered when investing in broadband.
Broadband Plan
A sound broadband plan is a politically supported document containing an analysis of the current situation, the goals to be achieved, the financial support to be gained and a mechanism on how to implement it.
Four key strategic choices
The guide presents four key strategy choices that need to be made in order to achieve the goals defined in the broadband plan:
Choosing the right infrastructure type
Is it necessary to deploy a new future-proof broadband infrastructure or would it be sufficient to upgrade the existing infrastructure?
When planning a broadband project it is important to understand the different technical levels of infrastructure, technologies and network designs in order to make a choice over the right infrastructure type for your regional broadband network. The decision over infrastructure depends on a number of factors including:
- the implications concerning the physical fundamental properties of the infrastructure (i.e. the medium);
- the level of ambition in the region considering the types and number of services planned;
- considerations about effects on the attractiveness and competitiveness of the area;
- the topography, population density and future development plans.
Choosing the right investment model
What is the role of the public authority with respect to the implementation, operation, ownership and management of the infrastructure in order to choose the right investment model?
The choice made here will greatly affect the role of a municipality or a region and thus define the influence of the public authority on the broadband infrastructure project. Four major investment models are suitable for broadband investment:
- direct investment through a publicly-run municipal network model
- indirect investment through a privately-run municipal network model
- the community broadband model
- operator subsidy model (gap-funding)
Choosing the right business model
Should the public authority opt for a vertically integrated or an open-access network model? Which business model is most likely to maximise broadband coverage and penetration, the financial sustainability of the project, competition and the socio-economic development of the community?
The business model describes the roles of the different actors in a broadband infrastructure project that are active on different network layers: passive infrastructure, active infrastructure and services. Respective actors or carriers will be matched according to the needs of the municipality or region. This can result in different business models: open networks with public and private actors in different roles or in vertically integrated models with only one (mostly incumbent) actor for all three network layers. Sometimes the choice of the model is limited due to regulations.
Choosing the right financing tools
How can the public authority ensure an adequate financial coverage for building and operating the infrastructure with the right financial tools? What can it contribute in terms of capital, expenditure and assets?
The different financing tools and models available for public and private investment in a broadband project need to be considered for the fourth key strategic choice. A sustainable financing concept should ensure an adequate financial coverage for building and operating the infrastructure.
Revenue based financing for running projects, private capital, bank loans and bonds, public funds and community financing are amongst the main financing tools. Moreover, private investments can lead to financial stability and an improvement of credit rating of the project. In areas where the market fails to invest due to unprofitability, state aid can be used following the specific conditions set within the EU State Aid Guidelines.
Action plan
Once these choices are made, an action plan needs to be defined and executed that specifies and checks on all the different activities. The process must be closely monitored to ensure the achievement of the previously defined goals.
Related Content
Big Picture
The European Commission is supporting EU businesses, project managers and authorities in increasing network coverage to reach the EU’s Gigabit Society goals.
Dig deeper
Investment efforts to finance public-private and private-run networks are made in cooperation between private actors who own existing infrastructure, and public authorities.
The basic roles of Physical Infrastructure Provider (PIP), Network Provider (NP) and Service Provider (SP) can be taken by different actors.
Access to the broadband infrastructure is possible via different network nodes on the infrastructure and application level.
Key to successful regional broadband development is a politically-supported plan at local, regional or national level, that combines goals with specific needs and stakeholders.
The action plan details the costs, stakeholders, activities, coordination and monitoring involved in implementing the broadband strategy.
An overview of different wired, wireless and upcoming broadband technologies and a description of their advantages, disadvantages and sustainability.
Choosing the right business model depends on the roles of the market actors in the broadband value chain.
Investment models present interesting involvement opportunities for a public authority that engages in regional broadband development.
The main financing tools for high-speed broadband development projects are own resources, revenue-based financing, loans, equity and grants.
State aid for broadband may be necessary in some places where the market does not provide the necessary infrastructure investment.
A broadband network consists of geographical parts. The topology of a network describes how the different parts of a network are connected. The most relevant topologies for the backbone and area networks are tree topologies, ring topologies and meshed topologies. For the first...
In order to understand the roles that public administrations can take, it is useful to view the different layers that make up a broadband network as well as main business roles.
Broadband networks require different infrastructure types based on different logistic, economic or demographic conditions. Use the questions to help choose.
A comparison of broadband technologies presents features of each solution and helps decisions on the best solution for different regions.
See Also
Find current information on broadband development in each country, as well as national strategies and policies for developing broadband.
The European Broadband Awards is an event that recognises outstanding broadband deployment projects in Europe and highlights successful infrastructures.
The Commission reviewed the Broadband Cost Reduction Directive and proposed the Gigabit Infrastructure Act for the quick rollout of Gigabit connectivity.
The European Broadband Competence Offices Network supports EU countries in reaching the Gigabit Society objectives and rolling out broadband.