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Questions and Answers
Which type of projects is Article 52(b) concerned with?
Which type of projects is Article 52(b) concerned with?
What is the minimum duration of the public consultation required by Article 52(b)?
What is the minimum duration of the public consultation required by Article 52(b)?
What must be carried out to identify service providers and their market share under Article 52(b)?
What must be carried out to identify service providers and their market share under Article 52(b)?
What type of corridor is mentioned as relevant to Article 52(b)?
What type of corridor is mentioned as relevant to Article 52(b)?
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What constitutes a step change in network performance?
What constitutes a step change in network performance?
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What download speed must a new network provide if there is already an ultra-fast network in the area?
What download speed must a new network provide if there is already an ultra-fast network in the area?
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What is a primary requirement for broadband services in the target area?
What is a primary requirement for broadband services in the target area?
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Which percentage of investment in physical infrastructure is required for the project?
Which percentage of investment in physical infrastructure is required for the project?
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What must compensation for SGEI cover according to the principles outlined?
What must compensation for SGEI cover according to the principles outlined?
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What is the maximum amount of aid that could be granted without requiring a claw-back mechanism?
What is the maximum amount of aid that could be granted without requiring a claw-back mechanism?
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Which of these safeguards should be implemented when the SGEI provider is a vertically integrated operator?
Which of these safeguards should be implemented when the SGEI provider is a vertically integrated operator?
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What is the purpose of adequate review and claw-back mechanisms?
What is the purpose of adequate review and claw-back mechanisms?
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Who should be involved in determining access products and prices?
Who should be involved in determining access products and prices?
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What condition must broadband projects satisfy regarding technology?
What condition must broadband projects satisfy regarding technology?
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Which condition must operators meet to participate in the voucher scheme?
Which condition must operators meet to participate in the voucher scheme?
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What is not allowed in the new broadband connectivity projects?
What is not allowed in the new broadband connectivity projects?
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What could be a possible issue if adequate safeguards are not in place for vertically integrated operators?
What could be a possible issue if adequate safeguards are not in place for vertically integrated operators?
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What is the minimum download speed required for a project to be eligible under the scheme?
What is the minimum download speed required for a project to be eligible under the scheme?
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What should be considered while determining compensation for SGEI?
What should be considered while determining compensation for SGEI?
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Why is limiting the operation of the network at a wholesale-only level important?
Why is limiting the operation of the network at a wholesale-only level important?
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What is required for schemes of social character in relation to State aid?
What is required for schemes of social character in relation to State aid?
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According to the Broadband Guidelines, which Article provides compatibility conditions for State aid related to broadband networks?
According to the Broadband Guidelines, which Article provides compatibility conditions for State aid related to broadband networks?
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What is the upper budget threshold for backhaul network projects eligible for financial aid?
What is the upper budget threshold for backhaul network projects eligible for financial aid?
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What technology must backhaul networks provide to be eligible under the relevant guidelines?
What technology must backhaul networks provide to be eligible under the relevant guidelines?
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What does the claw-back mechanism pertain to in the context of State aid?
What does the claw-back mechanism pertain to in the context of State aid?
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What must a Member State adhere to when facilitating backhaul networks under these guidelines?
What must a Member State adhere to when facilitating backhaul networks under these guidelines?
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Which article discusses the conditions for social vouchers in relation to State aid?
Which article discusses the conditions for social vouchers in relation to State aid?
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Which of the following statements is true regarding the broadband financial instruments?
Which of the following statements is true regarding the broadband financial instruments?
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What is the primary purpose of wholesale access in public intervention?
What is the primary purpose of wholesale access in public intervention?
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Which requirement must a Member State fulfill to derogate from providing physical unbundling?
Which requirement must a Member State fulfill to derogate from providing physical unbundling?
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What must the public authority demonstrate to avoid an undue distortion of competition?
What must the public authority demonstrate to avoid an undue distortion of competition?
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In assessing wholesale access obligations, what must be considered?
In assessing wholesale access obligations, what must be considered?
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What may be necessary to ensure that wholesale access is actually useful for access-seekers?
What may be necessary to ensure that wholesale access is actually useful for access-seekers?
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What does VULA stand for in the context of wholesale access?
What does VULA stand for in the context of wholesale access?
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What outcome is critical for the Commission to approve a derogation from physical unbundling?
What outcome is critical for the Commission to approve a derogation from physical unbundling?
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What is a necessary condition for the State-funded network to provide access?
What is a necessary condition for the State-funded network to provide access?
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What is the maximum limit for connectivity voucher schemes to be exempt from notification?
What is the maximum limit for connectivity voucher schemes to be exempt from notification?
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What is a requirement for the vouchers mentioned in the article?
What is a requirement for the vouchers mentioned in the article?
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Who can use the connectivity vouchers according to the article?
Who can use the connectivity vouchers according to the article?
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What must be established for consumers and SMEs to choose their service provider effectively?
What must be established for consumers and SMEs to choose their service provider effectively?
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What is the role of the SGEI obligation as defined in the article?
What is the role of the SGEI obligation as defined in the article?
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What is a condition for the deployment of connectivity vouchers in public properties?
What is a condition for the deployment of connectivity vouchers in public properties?
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What is an incorrect characteristic of the connectivity voucher schemes?
What is an incorrect characteristic of the connectivity voucher schemes?
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What is the significance of the €50 million limit for vouchers over 24 months?
What is the significance of the €50 million limit for vouchers over 24 months?
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Study Notes
Broadband Investment and State Aid
- This chapter outlines State aid rules applied to broadband investment, building on 2022 Broadband Guidelines.
General Principles (8.1)
- Any public funding for broadband investment must comply with EU State aid rules.
- These rules aim to minimize competition distortion, e.g., by reducing potential crowding out of private investment.
- Certain public funding uses require Commission notification before granting aid, including pre-tendering and contract signing.
- Other public funding uses may be self-assessed for compliance.
Public Funds Not Constituting State Aid (8.2)
- EU-level funding allocations are not considered State aid.
- Administrative or regulatory measures (e.g., right-of-way facilitation, coordination improvements, promoting shared infrastructure) are non-discriminatory and generally don't constitute State aid.
- Measures meeting the Market Economy Operator Principle (MEOP) are not considered State aid if comparable to private investment.
SGEls Meeting Altmark Criteria (8.5-8.13)
- SGEIs (services of general economic interest) deliver public goods/services not commercially viable.
- Public authorities have broad discretion in defining SGEIs, limited only if in manifest error (e.g., imposing service obligations on already commercially covered activities).
- Broadband projects are considered SGEIs if delivered to areas where private investors lack capacity or are geographically unavailable.
- Meeting certain conditions (e.g., ensuring open access, technological neutrality) and criteria, such as addressing market failures, is crucial for exemption from notification.
- Compensation for SGEIs should only cover net costs/reasonable profit in non-profitable areas.
- Provisions for adequate reviews/claw-backs are necessary.
De Minimis Aid (8.9)
- State aid below low thresholds isn't considered State aid.
- Different thresholds exist for SGEI aid and other cases.
- Aid records must be maintained by beneficiaries for 3 years.
GBER Exemptions (8.3)
- GBER exemptions apply to some State aid categories for broadband investment projects.
- Aid compliance assessment criteria are needed for public authorities.
- These aids do not significantly distort competition and their benefits outweigh distortion, e.g., projects must be needed and technologically neutral.
Aid for Fixed Broadband Networks (8.3)
- Article 52 details aid exemptions for fixed broadband projects under certain conditions; e.g., projects must demonstrate market failure not sufficiently addressed by private investment.
- Projects must involve upgrade/step change.
Determining Market Failure for Fixed Broadband (8.6)
- Two tests identify if a market failure exists:
- Presence or absence of 1 Gbps networks.
- Competitive pressure in the area.
- Public consultation and mapping are essential to establish market failure.
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Description
This quiz covers the rules of State aid as they apply to broadband investment, based on the 2022 Broadband Guidelines. It highlights the principles governing public funding compliance and the differences between State aid and non-aid measures in the context of EU regulations.
