1. State aid rules for broadband roll-out Norbert Ga ál / Filomena Chirico DG Competition – State Aid Information, Communication and Media European Commission European Commission, DG Competition, State aid 20 January 20 1 2
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4. “ From a mouse to an elephant…” European Commission, DG Competition, State aid
5. Conceptual framework European Commission, DG Competition, State aid Telecom Sector Liberalised. Private operators take the lead in investment and innovation, competition law to tackle abuses Regulated. Market failures still exist: monopolistic bottlenecks corrected via access obligations Subsidised. Market failure which regulation cannot correct: lack of infrastructure Common objectives Preserve private incentives to invest, keep markets open and competitive
6. Broadband Guidelines European Commission, DG Competition, State aid White/Grey/Black Paradigm Public subsidies should not go to areas which private operators find profitable Open access obligation Quid pro quo for receiving subsidies – no market analysis, SMP findings etc. Technology neutrality No predetermined choice of recipients
7. Where are we going European Commission, DG Competition, State aid Next Generation Networks and Digital Agenda objectives Everybody wants Fibre. Do we need fibre? DA focuses on speeds, BBGL focuses on investments in infrastructure What Competition? Not among infrastructures but on the same infrastructure Public interest in an open architecture (more competition), private incentives towards closed architectures (more profits) What innovation? Monopoly profits vs. competitive pressure Incremental vs. leapfrogging
Editor's Notes
European Commission, DG Competition [Directorate], [Unit]
![Economics of broadband networks European Commission, DG Competition, State aid Increasing investment costs / household Decreasing population density ,[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],[object Object],1 2 3 “ Market optimum” “ Societal optimum” € 200 billion](data:image/gif;base64,R0lGODlhAQABAIAAAAAAAP///yH5BAEAAAAALAAAAAABAAEAAAIBRAA7)