On the 31st of January 2023, the revised Guidelines on State aid for broadband networks were published in the Official Journal of the European Union (OJ C 36, 31.1.2023, p. 1–42) and are applied from the day following their publication. The guidelines indicate how the Commission will assess State aid measures notified by Member States that support the deployment and take-up of broadband networks in the EU.
Most investment in broadband networks comes from private operators, but State aid may be necessary in some areas to roll-out broadband networks or to incentivise consumers and business to subscribe to broadband services.
The Guidelines will help public authorities to design support measures compatible with the Single Market that contribute to achieving the 2030 connectivity objectives of the European Digital Decade policy programme and ensure gigabit connectivity for everyone as well as 5G coverage for all populated areas.
The new Guidelines reflect the current regulatory, market and technical developments. As a result, the thresholds for intervention have been revised. Member States can support investment in fixed networks in areas where the market is not likely to provide end-users with a download speed of at least 1 Gbps and an upload speed of at least 150 Mbps.
For the first time, the guidelines also provide a framework for the assessment of aid to the deployment of mobile networks (including 5G) and take-up measures.
Certain rules have been simplified. Notably, the design of the wholesale access products to the subsidised network can better consider the competitive situation of the area concerned and the demand for certain access products. As a result, certain deployment costs could be reduced without affecting competition.
Furthermore, the guidelines provide additional guidance on a number of key areas, such as mapping, public consultation, selection procedure, wholesale access pricing and claw back mechanisms.
In particular, the revised Guidelines recognise that in order to avoid excessive differences in the way the mapping of broadband networks is carried out (an essential element to verify if a market failure is present) several key elements must be harmonised (for instance, the performance of the network must be measured in terms of download speeds and, where relevant, upload speeds available to end-users under peak times conditions and at premises passed or in a 100 m2 grid for wireless networks). In addition, a more detailed but voluntary methodology is proposed in an annex to the Guidelines.
For further details and rules please refer to the Broadband Guidelines.
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