EU sets guidelines for broadband investment

The EU has committed €1bn to boost broadband penetration

The European Commission has published a set of guidelines for how member states can fund new broadband internet projects.

The Community Guidelines (PDF) are part of an ongoing economic recovery campaign, and show how states will be allowed to invest in broadband while still allowing local telcos and service providers to operate in the market.

Around €1bn has been committed by the European Union as part of a project to provide 100 per cent broadband internet penetration across the territory.

"Broadband is of strategic importance because of its ability to accelerate the contribution of these technologies to growth and innovation in all sectors of the economy, and to social and regional cohesion," said the Commission.

"The Commission actively supports the widespread availability of broadband services for all Europeans."

In the midst of the economic crisis, governments have been increasingly viewing broadband internet systems as a critical component to recovery. The US Committee on Energy and Commerce voted recently to approve a grant of $6bn, while the government of Australia has unveiled plans for a AU$43bn broadband network.

The EU warned, however, that such investment should not come at the expense of private companies. Members are urged to approach the investments as public works projects, rather than an invitation to enter the ISP business.

"In such cases, state aid to broadband might become counterproductive to the objective pursued," the Commission said.

"The primary objective of state aid control in the field of broadband is therefore to ensure that state aid measures will result in a higher level of broadband coverage and penetration."