ANNOUNCEMENT 01 Feb 2010In February 2010, the government of Germany announced a change in the required local operations to serve domestic customers.
NUMBER OF INTERVENTIONS
the letter from the EC to Germany - Brussels, 12/07/2010 C (2010)4862 - http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_N53_2010
The German authorities notified a framework programme applying to the whole of Germany to the Commission for promoting the deployment of NGA networks by means of duct support (Leerrohrförderung) and support in the form of construction works (Bauarbeiten).
The German authorities consider performing broadband networks to be a necessary condition for rapid information and knowledge exchange which is key to economic growth. This also implies that higher speeds should be available on a greater scale. In particular businesses, users have a demand for high performing internet services to offer their goods and services.
The estimate on public support is stated by the German authorities to be at around EUR 600 million (USD 831 million).
The Commission gave the following assessment of the measure:
"The measure is financed by the State, regional and municipal funds and can be co-funded with EU funds, which are disbursed - with elements of discretion - by the German authorities. This constitutes state resources within the meaning of Article 107 (1) TFEU...Insofar as the intervention is liable to affect providers of electronic communications services from other Member States, the measure has an effect on trade. The markets for electronic communications services are open to competition between operators and service providers, which generally engage in activities that are subject to trade between Member States." (par. 45, 52 of the letter from the EC to Germany - Brussels, 12/07/2010 C (2010)4862).
The Comission decided that on the basis of the foregoing assessment, the Commission has accordingly decided that the aid measure "Federal framework on duct support for the creation of universal broadband coverage " is compatible with the internal market, according to Article 107(3)(c) TFEU.
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.
On 8 June 2011, the European Commission approved a scope amendment and budget increase of this measure (see related state act).