ANNOUNCEMENT 04 Apr 2012

In April 2012, the European Commission approved a prolongation and a budget increase of an aid measure supporting the next generation broadband in rural areas and market towns of North Yorkshire.

 

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE

SA.34188. Next Generation Broadband in North Yorkshire – alterations to existing aid and aid for basic broadband deployment :
http://ec.europa.eu/competition/elojade/isef/case_details.cfm?proc_code=3_SA_34188

Original publication:
http://eur-lex.europa.eu/JOHtml.do?uri=OJ:C:2012:177:SOM:EN:HTML

European Commission decision. SA.34188
http://ec.europa.eu/competition/state_aid/cases/243416/243416_1316607_73_2.pdf

Inception date: 04 Apr 2012 | Removal date: open ended

Financial grant

On 4 April 2012, the European Commission approved a prolongation and a budget increase of GBP 20 million (USD 32 million) from the United Kingdom for a financial grant to improve the next generation broadband in rural areas and market towns of North Yorkshire. The aid measure will support a technology partner who is to build, manage and operate the extended wholesale open access network and NYnet. With this modification, the total budget of the aid measure increased to GBP 40 million (USD 64 million).

Under the aid measure, funding will be provided to the network operator in the form of a direct grant on the basis of an open tender. The network operator will “manage and operate the wholesale, open access network.” 

In this context, the European Commission noted that the aid measure “will alter the conditions of competition between end users in North Yorkshire who are likely to subscribe to the NGA services and end users elsewhere in the European Union. Therefore, the fact that State aid is used to extend the existing backhaul network in North Yorkshire will have  the effect of distorting competition.” 

Regardless, the Commission has decided not to raise objections to the aid on the grounds that “the alterations to existing aid for the support of next-generation broadband  and aid for basic broadband deployment in North Yorkshire are compatible with  the internal market in  accordance with Article 107(3)(c) of the TFEU”

The state aid is notified under the following objective: Regional development.

A state act in the GTA database is assessed solely in terms of the extent to which its implementation affects foreign commercial interests. On this metric, the financial support granted here is discriminatory.

AFFECTED SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A