European Commission plans to release £8bn funds for broadband rollouts

The European Commission (EC) is to propose the release of £8bn in funding in an effort to help stimulate the rollout of superfast broadband networks across the European Union, according to a report by the BBC.

Sources in the EC reportedly said the organisation will unveil the plans on Wednesday in an effort to ensure the region will benefit from the economic potential of getting homes and businesses online with superfast broadband connections.

"Europe needs these fast broadband networks to allow its economy to become more competitive in the future, and so create more jobs and prosperity," the sources said.

"This money would stimulate far greater investment of private and other public money. Each euro [invested by the Commission] would give rise to a further six to 15 euros more."

V3 contacted the department of the European Commission responsible for the Digital Agenda for further information on the funding but had received no reply at the time of publication.

Analysys Mason partner Matt Yardley told V3 that the funding would likely be a supplement to the existing spend by the private sector and governments to help ensure rollouts reach all citizens, even in the remotest areas.

"I don't think it's a question about trust in the private sector: operators are investing in superfast broadband, but we know that if the market was left to its own devices then there would be gaps, and in some cases, the gaps would be large," he said.

"The EC funds will be welcomed by governments, although I think they will play more of a stimulus role than anything else, since on an investment per household basis the amount is actually quite small: it won't guarantee Fibre to the Home, for example."

The plans would need approval from the European Parliament before any funding would be released but could well be a necessary step in the progression of the EC's desire to push the rollout of broadband across the European Union (EU).

The EC has set ambitious targets for broadband access for citizens across Europe, aiming to ensure all households are on connections of at least 30Mbit/s and half the population on 100Mbit/s by 2020.

Last week Neelie Kroes announced her displeasure with the slow rollout of satellite broadband services, revealing that the EC now has the power to force member states to adopt the necessary legislation to speed up the adoption of the technology.