Anyone seen this?

mayhem#

Quoted from [url]www.muniwireless.com:[/url]

EU allows public funding to bridge broadband communications gap in Ireland

Some people get it, some people don’t. While American cities and regions lag further behind in broadband deployment, while their residents and businesses continue to pay among the highest prices (megabyte of bandwidth) in the developed world, other regions (such as the European Union) encourage public investment in true broadband (that is, fiber optic networks).

If you have been reading Muniwireless for a while, you know that most US cities and counties proudly announce that they do not spend taxpayer money on municipal wireless broadband deployments. Public spending on municipal deployments, whether wired or wireless, has encountered opposition from large telcos and cable companies, many of which are even supported by politicians who get campaign funds from these firms.

While spending public funds is not appropriate in all cases, in some instances - such as fiber deployments which have a long term return on investment - public funding is necessary. Yet, this notion is almost taboo in the US because cities and counties are afraid of large telcos and cable companies.

What’s left out of the discussion is the role of smaller telecoms and cable companies, ISPs and non-profit media organizations — entities could definitely benefit from public investment in fiber infrastructure.

If a state spends millions of dollars on a fiber optic network and opens that network up to small telcos, ISPs, and non-profit organizations such as the Mountain Area Information Network in North Carolina (which delivers dial-up and broadband services), people have more choice. Indeed, even large telcos like Verizon and AT&T would benefit because the network would open up a broader range of customers in areas they don’t serve today. It’s the massive investment that is required for laying down a fiber network that’s keeping large, small and non-profit organizations from providing true broadband to rural areas and low-income families in urban locations.

So read the European Commission press release below and understand that the EC is serious about encouraging competition in the market for high-speed broadband services in precisely the areas that are not well-served by private enterprise today because of the massive investments required for laying fiber. Together with the Commission’s requirement that incumbent telecom companies open up their networks to competitors, the Commission’s decisions to allow public funding in Ireland, Wales and France, show the EU’s seriousness about getting true broadband to all EU citizens.

One can understand why the EU will continue to pull ahead of the US in broadband deployment, as well as low prices for true broadband service. And note also that in the Netherlands, the telecom regulator is now requiring cable companies to open their networks.

EC press release approving Irish public spending for broadband

The European Commission has authorised, under EC Treaty state aid rules, a programme to boost broadband availability in Ireland. Ireland is lagging behind most EU-15 Member States in broadband penetration. The Irish Government will create open-access Metropolitan Area Networks (“MANs”) in over 120 Irish towns at a cost of €170m, with support from EU structural funds. The Commission concluded that the aid was not likely to distort competition within the EU significantly.

Competition Commissioner Neelie Kroes commented: “I am pleased to endorse this expansion of the Irish Metropolitan Area Network programme. The open networks will enable all operators to offer high-speed broadband services to businesses and citizens in the towns concerned. The project will boost competition in the area and is fully in line with the Commission’s policy to promote broadband in areas which would otherwise miss out.”
In partnership with the local authorities, the Irish Government decided to build open, carrier-neutral, fibre-optic networks (“Metropolitan Area Networks”) in over 120 towns where such infrastructure is not supplied by market players. The management and exploitation of the networks, which remain in public ownership, will be tendered out to a wholesale operator. This wholesale operator will then offer its services to telecommunications companies, who will provide high-speed electronic communications services to end users. This funding is for Phases II and III of the MANs programme. Phase Ihas already been completed with networks built in 26 towns.

In the EU-15, broadband take-up in Ireland ranks second lowest, just before Greece. In late 2005, only 5.3% of the population had broadband connections. A large part of the Irish population is located in the Greater Dublin area. In many smaller towns, infrastructure investments by telecommunications operators are limited due to the high construction cost and low likely return of investment. Furthermore, cable networks exist only in few Irish cities. Therefore, there is no competition on the infrastructure level in the towns targeted by the project.

EC Treaty state aid rules (Article 87(3)(c)) allow subsidies for the development of certain economic activities or of certain economic areas provided there is no overall negative effect on competition. The Metropolitan Area Networks project pursues a clear cohesion objective and is expected to be co-financed by EU structural funds. Moreover, the project is in line with Community priorities outlined in the eEurope 2005 Action Plan (see IP/04/626) and the i2010 initiative (see IP/05/643).

The Irish authorities have implemented a number of safeguards which will ensure that the scheme does not unduly distort competition. For example, the wholesale operator will be selected through an open tender and a revenue distribution mechanism will keep the aid amounts to a minimum.

In Municipal Wireless/Regulatory Watch Posted Thursday, March 9, 2006

dahamsta

Three threads down.

cgarvey

Yes, most of us have seen it in the more appropriately named thread Ken Shabby refers to... silly billy