Irish Regions Office Website

January 29, 2009

Commission earmarks EUR1bn for rural broadband investment

In a bid to achieve 100% high-speed internet coverage for all EU citizens by 2010 as part of the European Economic Recovery Plan, the European Commission has announced (28 January) the earmarking of EUR1 billion to help rural areas get online, bring new jobs and grow businesses. This is part of the EUR5 bn. of unspent EU resources green lighted by last December's European Council for energy and communications infrastructure investment (including EUR100 mn. for the Ireland-Wales electricity interconnector).

This funding will be used in addition to private investments and national funding to allow rural areas which are not covered by existing plans to roll out or upgrade broadband in order to be able to fully participate in the web economy and be better placed for economic recovery. The types of operations that can be supported are:
- Creation of new broadband infrastructure including backhaul facilities (e.g. fixed, terrestrial wireless, satellite-based or combination of technologies);
- Upgrade of existing broadband infrastructure;
- Laying down passive broadband infrastructure (e.g. civil engineering works such as ducts, and other network elements such as dark fibre, etc.) including synergies with energy, transport and water network s infrastructure.

The funding (at a 75% co-financing rate) will be injected into the existing national Rural Development Programmes under the European Agricultural Fund for Rural Development (EAFRD) and distributed among all Member States on the basis of their current national shares of this fund. This system will additionally be used to allocate EUR0.5 bn to be spent on ''new challenges'' as identified under the Health-check of the Common Agricultural Policy.
It is the responsibility of Member States and regions to select the projects that can best serve their areas following the established eligibility and selection rules within their Rural Development Programmes which will need to be modified to incorporate the option for investments in broadband infrastructure by 30 June in order to allow projects to be identified and authorised so that expenditure may take place this year. In Ireland's case the national rural development managing authority is the Department of Agriculture, Fisheries and Food.

Assuming a constant adoption rate over the coming years, broadband's boost to economic development, efficiency, innovation and market access - particularly in less populated and remote areas - is expected to create 1 million jobs and boost the EU's economy by EUR850 billion by 2015. According to the IDATE Study Broadband Coverage in Europe 2008, Ireland currently offers broadband coverage to 87% of the population (73% for rural areas and on a par with Czech Republic, Estonia, Latvia and Lithuania). The average figure for the EU (excluding Bulgaria and Romania) is 93% (80% rural). These figures relate to the coverage of DSL, the most widespread access platform in Europe, but do not take into consideration people living too far away from telephone exchanges to have access.

Commission's "Bridging the Broadband Gap" initiative:
http://ec.europa.eu/information_society/events/broadband_gap_2007/index_en.htm
European broadband portal:
http://www.broadband-europe.eu

Posted by iroronan at January 29, 2009 02:46 PM