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Germany has announced a €3 billion national programme to accelerate deployment of next-generation access (NGA) broadband networks, and the European Commission has approved the plan after determining it complies with EU state aid rules.
Under the 2013 Broadband State Aid Guidelines, public funding for broadband infrastructure must be made available to all competing operators to avoid unfair discrimination. The German government’s investment is aimed at building the physical infrastructure needed to deliver high-speed internet across the country, with a particular emphasis on improving connectivity in rural and underserved areas.
Margrethe Vestager, EU Commissioner in charge of competition policy, said this scheme will extend faster broadband services to parts of Germany where private investment is insufficient while ensuring consumers retain choice among providers.
She added that the decision demonstrates how EU state aid rules allow member states to collaborate with the Commission to encourage infrastructure investment and help build a genuine Digital Single Market.
The argument that the investment supports the Digital Single Market objectives helped secure the Commission’s approval. The European Union has sought a more integrated digital market so that content and online services can be made available across member states under consistent rules and regulations.
Germany first unveiled its broadband investment plans in February of the previous year. Under the scheme, private operators and municipalities are eligible to apply for funding in designated target areas where broadband access is limited and where no NGA roll-out is planned within the next three years.
The NGA rollout is intended to deliver minimum speeds of around 30 Mbps in many locations, with potential for speeds approaching 50 Mbps in other cases. Funding and deployment will treat households and businesses neutrally to maximize the number of end-users who benefit, whether they access the network from home or from commercial premises.
Germany has also set a national target to achieve at least 50 Mbps broadband availability across the country by 2018. To support that goal, industry stakeholders have formed an alliance called Netzallianz Digitales Deutschland, which will track progress and promote coordination across the sector to speed up infrastructure deployment.
One significant concern for the Commission relates to the potential use of vectoring technology as a supplement to NGA networks. Vectoring can increase broadband speeds over existing copper lines, but current implementations often prevent open access and can result in a single provider serving multiple homes, effectively excluding competitors.
Because existing vectoring solutions do not guarantee the kind of open access required under the 2013 Broadband State Aid Guidelines, Germany has told the Commission it will propose a new access product designed to grant full access for competitors on vectored networks. This proposed solution aims to reconcile the performance benefits of vectoring with regulatory requirements for non-discriminatory access.
The Commission’s approval signals support for public investment where it complements private plans and increases connectivity for underserved regions, provided safeguards ensure fair competition and consumer choice. As Germany moves forward with the programme and negotiates the technical and regulatory details of vectored-network access, monitoring and industry cooperation will be essential to meet national speed targets and deliver widespread, affordable high-speed internet.
Do you feel the EU Commission is right to be concerned about vectored networks? Let us know in the comments.