ANNOUNCEMENT 28 Jun 2010

In June 2010, the European Commission approved a financial grant from the United Kingdom to support the next generation broadband in rural areas and market towns of North Yorkshire.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 01 Jul 2010 | Removal date: 03 Apr 2012

Financial grant

On 28 June 2010, the European Commission approved an aid measure having a budget of GBP 20 million (USD 24.5) from the United Kingdom 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. The aid measure is in force from 01.07.2010.

Under the measure, funding will be provided to the network operator in the form of direct grant on the basis of an open tender. The network operator will “build, 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 aid measure "North Yorkshire  Next Generation Broadband - Extension of NYNET in  Rural Areas and Market Towns" is compatible 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.

Update

On 4 April 2012, the European Commission approved the prolongation and additional funding for this measure (see related state act). 

AFFECTED SECTORS

 

AFFECTED PRODUCTS

 
N/A