BoR (11) 06b BEREC report NGA Country Cases - IRG

BoR (11) 06b
The second objective is to increase supply of high-speed broadband connections in most
remote areas. For this purpose Government reserved 66 M€ of state budget. The state
aid is targeted to most remote rural areas where the most remote 5 % of population lives.
The state aid is mainly directed to boost trunk network investments for providing highspeed
broadband connections by the end of 2015. The target is to have high-speed (100
Mbit/s) broadband network available for all. By the end of 2015 high-speed (trunk)
networks should be within the reach of virtually everyone in a 2 km distance, according to
demand. Some state aid is directed also to the access network. If the subscriber
connection is less than two kilometer length it is not eligible for state aid. The subscriber
connections over two kilometer length are eligible for state aid.
The total amount of public funding consists of state aid 66 M€ and EU Agricultural Fund
25 M€. At least 34 percent of the costs have to be born by the operator building the
network and maximum 66 percent by state and municipalities. The municipality's share of
the costs differs between 33, 22, and 8 percent of the costs. The municipalities share is
defined in advance. It is lower for example in municipalities that suffer financial difficulties
and have high estimated investment costs to the high-speed networks.
The broadband state aid legislation entered into force in the beginning of 2010 and the
amendment 1.7.2010. EC approved the state aid (7 May, 2010). The state aid (66 M€) is
granted by FICORA (Finnish Communications Regulatory Authority). Aid for rural
broadband deployment available from the EU agricultural fund (25 M€) is granted by
regional EDTE canters. This aid for rural broadband deployment is directed to the
municipalities that belong to the group of 22 percent cost share. The criteria for the rural
aid are very similar to those of the state aid.
At the moment, the first state aid applications are being processed in FICORA and EDTE
centers. The first round of public consultation and market analyses has been finalized and
most of the first round of regional councils‟ application processes are also finalized and
regional councils are selecting the operators that will build each network. The second
round of public consultation and market analyses has begun. The network building has
started in the first seven pilot projects that were started in the end of 2009.
- Main focus of the initiative/measure (e.g. providing broadband in currently
underserved areas; outlining the regulatory approach towards NGAs networks in order
to provide legal certainty and planning security for operators; providing transparency );
- Scope and envisaged target of the measure;
- Current achievements, milestones reached.
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