IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 28 Sep 2012 | Removal date: open ended
Still in force

Financial grant

On 3 May 2012, the Italian Government notified the European Commission about a support program for a telecommunication infrastructure project (FIBERSAR) and for the construction of the gas distribution network (BULGAS).
 
Since 2006, the region of Sardinia financed the upgrade of local telephone centers, and rolled out its own public network (RTR) connecting the offices of the regional public administration. The region also adhered to the 2009 national framework project to build backhaul networks in underserved rural areas. However, the region still lags behind in terms of bandwidth.
 
The FIBERSAR project concerns the realisation of the public fiber-based network RTP and of the basic Next Generation Access (NGA) infrastructure for private users. Given the high costs of civil work for the implementation of NGA networks, the Italian authorities want to carry out the FIBERSAR project in concomitance with the planned construction of the gas distribution network (BULGAS project).
The aid will cover the following activities:
- laying of ducts;
- connection of all public interest points into a Public Telematic Network (RTP);
- laying of dark fiber to facilitate NGA deployment for 50% of the population;
- management, maintenance and extension of the infrastructure.
In a subsequent phase, a wholesaler will be selected to manage and maintain the network.
The aid takes the form of a direct grant allocated on the basis of an open tender process. The total amount of the support will be of more than EUR 8 million.
 
As the European Commission reports, the selected operator will receive financial support and will be able to provide broadband services at conditions not otherwise available on the market. 'The fact that an improved broadband service becomes available had the effect of distorting competition. Insofar as the intervention is liable to affect providers of electronic communication services from other Member States, the measure has an effect on trade... Therefore... the Commission considers that the scheme constitutes State aid within the meaning of Article 107(+) of the TFEU'. 'Pp.7-8 letter of the EC to Italy, Brussels, 28.06.2012; C(2012) 6911 final'
 
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

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AFFECTED SECTORS AND PRODUCTS

461 Electric motors, generators & transformers; parts
8504 Electrical transformers, static converters (for example, rectifiers) and inductors.
850410 Ballasts for discharge lamps or tubes
850421 Having a power handling capacity not exceeding 650 kVA
850422 Having a power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA
850423 Having a power handling capacity exceeding 10,000 kVA
850431 Having a power handling capacity not exceeding 1 kVA
850432 Having a power handling capacity exceeding 1 kVA but not exceeding 16 kVA
850433 Having a power handling capacity exceeding 16 kVA but not exceeding 500 kVA
850434 Having a power handling capacity exceeding 500 kVA
850440 Static converters
850450 Other inductors
850490 Parts
463 Insulated wire & cable; optical fibre cables
8544 Insulated (including enamelled or anodised) wire, cable (including coaxial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with
854411 Of copper
854419 Other
854420 Coaxial cable and other coaxial electric conductors
854430 Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships
854442 Fitted with connectors
854449 Other
854460 Other electric conductors, for a voltage exceeding 1,000 V
854470 Optical fibre cables

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