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Questions and Answers

What is a key consideration for State intervention in addressing the digital divide?

  • The popularity of broadband services among users
  • The presence of existing successful broadband networks
  • The extent to which market failures are present (correct)
  • The investment budgets of private companies

Which speed requirements indicate a market failure in broadband access?

  • Download speed of 500 Mbps and upload speed of 50 Mbps
  • Download speed of at least 1 Gbps and upload speed of at least 150 Mbps (correct)
  • Download speed of 300 Mbps and upload speed of 30 Mbps
  • Download speed of at least 2 Gbps and upload speed of at least 100 Mbps

How long can State interventions be subject to a private investment protection period?

  • Up to 3 years
  • Up to 10 years
  • Up to 5 years
  • Up to 7 years (correct)

What should be considered when assessing the likelihood of market provision for broadband speeds?

<p>Credible plans to deploy such networks within the relevant time horizon (C)</p> Signup and view all the answers

Which of the following is NOT a suggested method for demonstrating unmet end-user needs?

<p>Statistics on profits of broadband providers (D)</p> Signup and view all the answers

What factor significantly influences internet penetration in various regions?

<p>Degree of urbanization (D)</p> Signup and view all the answers

In which circumstance should State aid be directed for maximum effectiveness?

<p>Locations where no fixed network is in place or planned (B)</p> Signup and view all the answers

What is the relationship between market failures and State intervention?

<p>State intervention should only target unaddressed market failures (C)</p> Signup and view all the answers

What must a Member State demonstrate for state aid to be considered appropriate?

<p>The aid addresses a market failure. (D)</p> Signup and view all the answers

When is state aid deemed inappropriate?

<p>If the same outcome can be achieved through less distortive measures. (D)</p> Signup and view all the answers

What defines a 'step change' in the context of state-funded networks?

<p>Significantly enhanced characteristics compared to current networks. (B)</p> Signup and view all the answers

What types of networks are compared to assess the performance of state-funded networks?

<p>The highest performing existing networks. (B)</p> Signup and view all the answers

Which of the following investment types is NOT eligible for state aid?

<p>Marginal investments in existing network upgrades. (A)</p> Signup and view all the answers

What condition must be fulfilled for state aid to bring significant new capabilities to the market?

<p>The funded network must provide higher speeds and capacities. (D)</p> Signup and view all the answers

Which of the following accurately describes the criteria for credible investment plans in assessing state-funded networks?

<p>Plans must independently achieve performances comparable to the target areas. (D)</p> Signup and view all the answers

What constitutes a significant new investment for state-funded fixed or mobile networks?

<p>New investments leading to enhanced network capabilities. (B)</p> Signup and view all the answers

What type of State aid is mentioned in the Commission's Guidelines for broadband networks?

<p>Aid for deployment and take-up of broadband networks and services (C)</p> Signup and view all the answers

Which of the following conditions must be fulfilled for a financial intervention to be considered State aid?

<p>It fulfills one of the conditions set in Article 107(1) of the Treaty (A)</p> Signup and view all the answers

Which entity's funding is explicitly stated as not constituting State aid?

<p>Institutions, agencies, or bodies of the Union (C)</p> Signup and view all the answers

What must be true about an undertaking receiving aid for broadband networks?

<p>It must not be under an outstanding recovery order (B)</p> Signup and view all the answers

What is required for a State intervention to be exempt from compatibility assessment under these Guidelines?

<p>The intervention must not fulfill conditions in Article 107(1) (D)</p> Signup and view all the answers

What must a State aid intervention target in the broadband sector?

<p>Areas lacking access to adequate broadband services (B)</p> Signup and view all the answers

Who determines the level of adequate broadband services within a Member State?

<p>Each Member State based on national conditions (A)</p> Signup and view all the answers

What is necessary for a Member State to establish the lack of adequate broadband services?

<p>Public mapping and consultation (D)</p> Signup and view all the answers

What has changed in terms of backhaul requirements with the introduction of 5G?

<p>Higher backhaul requirements and more optical fiber usage (B)</p> Signup and view all the answers

According to case-law, who must assign the task of operating services of general economic interest?

<p>An act of a public authority (D)</p> Signup and view all the answers

Which of the following is NOT a consideration when assessing adequate broadband services?

<p>Market competition level (B)</p> Signup and view all the answers

What criteria must a Member State meet to consider a broadband service adequate?

<p>It must provide minimum bandwidth for social inclusion (C)</p> Signup and view all the answers

Which service characteristics must be considered by Member States when classifying a genuine SGEI?

<p>Quality, price, and continuity (D)</p> Signup and view all the answers

What is one of the key priorities of the Recovery and Resilience Facility (RRF)?

<p>To support the digital transition (D)</p> Signup and view all the answers

How much of the allocated funding must each Member State dedicate to digital transition measures according to Regulation (EU) 2021/241?

<p>At least 20% (B)</p> Signup and view all the answers

What does the RRF primarily aim to address regarding connectivity?

<p>The digital divide between urban and rural areas (C)</p> Signup and view all the answers

Which type of networks is capable of delivering speeds of at least 1 Gbps at the current stage of development?

<p>Fibre to the home and performant cable networks (D)</p> Signup and view all the answers

What is a major concern that the Regulation (EU) 2021/241 intends to address?

<p>Market failures in network deployment (A)</p> Signup and view all the answers

Which communication emphasizes the need for a competitive digital single market?

<p>Connectivity for a Competitive Digital Single Market (B)</p> Signup and view all the answers

What specific technology does Regulation (EU) 2021/241 highlight for providing high-speed internet?

<p>Fibre optics and performant cables (D)</p> Signup and view all the answers

Which proposal outlines the 2030 Policy Programme for the Digital Decade?

<p>Path to the Digital Decade (A)</p> Signup and view all the answers

What is one of the key criteria for mapping performances of State aid supporting fixed access networks?

<p>Download and upload speeds must be reported under peak-time conditions. (A)</p> Signup and view all the answers

For what purpose must Member States map existing or planned backhaul networks?

<p>To ensure there is sufficient backhaul capacity. (D)</p> Signup and view all the answers

What should the mapping for mobile networks be based on according to the guidelines?

<p>Premises passed or 100 × 100 metre grids. (A)</p> Signup and view all the answers

What must be made publicly available by Member States regarding mapping methodologies?

<p>The underlying technical criteria used to map. (A)</p> Signup and view all the answers

What is not required if a network deployment includes both an access network and a backhaul network simultaneously?

<p>A separate mapping of backhaul networks. (A)</p> Signup and view all the answers

Which of the following is emphasized regarding existing backhaul networks?

<p>Their performance must be evaluated under various conditions. (B)</p> Signup and view all the answers

What is the main focus of the Commission Decision C(2017) 3657 final?

<p>Establishing guidelines for state aid in broadband infrastructure. (D)</p> Signup and view all the answers

Which aspect is crucial for calculating network performances in mapping?

<p>Any bottleneck that could impede performance. (B)</p> Signup and view all the answers

Flashcards

RRF

Recovery and Resilience Facility, part of a European plan to support digital transition.

Digital divide

Gap in access to digital technology and resources between urban and rural areas.

Digital transition

Shift towards a more digital-based economy and society.

20% funding

Minimum percentage of funds allocated by each Member State to digital transition measures.

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1 Gbps download speed

Current achievable download speed using certain technologies (e.g., fibre, DOCSIS 3.1).

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Regulation (EU) 2021/241

European regulation establishing the Recovery and Resilience Facility (RRF).

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Fibre to the building

Fiber optic network for connections directly to buildings, not just homes.

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DOCSIS 3.1

Advanced cable network technology capable of delivering high-speed internet.

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State aid compatibility

Assessment of whether state aid for broadband deployment is compatible with the EU internal market, based on specific Treaty articles.

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State interventions

Government actions that do not meet the conditions of Article 107(1) of the Treaty.

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Union funding

Funding managed directly by EU institutions, agencies or other bodies, not controlled by member states, isn't considered state aid.

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Aid to struggling companies

Aid for broadband deployment cannot be given to companies in financial difficulty, according to the Commission's guidelines.

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Previous illegal aid

When evaluating aid for a company with a previous illegal aid ruling, the Commission considers any still outstanding recovery amounts.

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Market failure

Situation where the free market fails to provide a good or service efficiently, often due to lack of competition or insufficient investment.

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Fixed access network

Physical infrastructure used to connect users to the internet, often involving cables or fiber optic lines.

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Download speed

Rate at which data is received from the internet, measured in bits per second (bps).

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Upload speed

Rate at which data is sent to the internet, measured in bits per second (bps).

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Credible plan

Realistic and well-defined plan for deploying broadband infrastructure in a specific area.

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Verifiable evidence

Proof or data that can be independently checked and confirmed to support a claim.

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SGEI

A service of general economic interest, provided to meet public needs and usually subject to special rules. Examples include postal services, public transport, and broadband.

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Manifest Error

A clear and obvious mistake made when classifying a service as an SGEI, implying that market conditions are sufficient to provide the service.

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Adequate Broadband Services

The minimum level of internet speed and quality deemed necessary by each Member State to ensure social inclusion and participation in the digital economy.

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Mapping and Consultation

The process of identifying areas lacking adequate broadband services and seeking input from the public on their needs.

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State Aid Intervention

Government support or funding provided to a company providing an SGEI, only when market conditions cannot meet public needs.

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Backhaul

The network connection carrying data between a mobile base station and a central switching center.

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LTE-Advanced and 5G

Modern mobile network technologies requiring high-capacity backhaul networks, often using optical fibers.

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Undertakings Entrusted with SGEI

Companies specifically assigned by a public authority to operate services of general economic interest.

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Mapping Broadband Performance

The process of identifying the specific areas and speeds of internet access available in a region under peak-time conditions, taking into account potential bottlenecks.

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Peak-time conditions

The busiest times when internet usage is highest, affecting the actual speed experienced by users.

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Bottleneck

A weak point in the internet infrastructure that limits the overall speed, often due to insufficient backhaul capacity.

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Backhaul network

The high-capacity network that connects to the internet backbone and carries traffic from local access networks.

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Mapping for Fixed Access Networks

Mapping broadband performance at the address level for fixed wired networks (e.g., fiber, cable) using premises passed as a measure.

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Mapping for Mobile Access Networks

Mapping broadband performance at the address level for mobile networks using premises passed or grid-based coverage areas.

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Mapping for Backhaul Networks

Identifying the performance of existing or planned backhaul networks within a defined time frame to ensure adequate capacity.

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Publicly Available Mapping Methodology

The specific methods and technical criteria used to map broadband performance must be made transparent and accessible to the public.

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State Aid Appropriateness

State aid must be suitable to address a specific market failure and achieve the intended goals. Other, less interventionist methods must be insufficient to achieve the same outcome.

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Step Change Requirement

State-funded networks must offer significantly improved capabilities over existing networks, like better speeds, availability, or capacity.

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Significant New Investment

State-funded broadband networks must involve substantial new investments to be considered appropriate for state aid.

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Credible Investment Plans

Existing investment plans with similar performance goals must be considered when assessing a step change, especially if they could achieve comparable results.

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Marginal Investments

Minor improvements to existing networks, such as upgrading active components, are not considered eligible for state aid.

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Copper Technology Enhancement

Technology like vectoring can improve copper network performance but may not require significant new investment, therefore might not qualify for state aid.

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Performance Comparison

The performance of the state-funded network must be compared to the best performing existing network in the target area to determine a real step change.

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Time Horizon

When evaluating potential competitors' plans, consider whether they could achieve similar performance to the state-funded network within a reasonable timeframe.

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Study Notes

Introduction

  • Connectivity is crucial for growth & innovation in the EU.
  • Union has ambitious goals for digital connectivity by 2025 & 2030.
  • Increased investment needed for 2025 & 2030 goals.
  • Investments primarily from private investors, supplemented by public funds, aligned with state aid rules.
  • Covid-19 highlighted importance of communication networks.
  • NextGenerationEU (RRF) targets digital transition.
  • States required to notify EU Commission of state aid plans, unless exempted.

Scope, Definitions, Types of Broadband Networks

  • State aid is prohibited unless compatible under Article 107(2) and (3) of the Treaty.
  • Member States are required to notify the EU Commission about state aid plans.
  • "Broadband network" is an electronic communications network delivering broadband services.
  • "Access network" is the part of a broadband network connecting the backhaul network with end-users.
  • "Fixed access network" uses technologies like cable, DSL, optical fibre, and wireless for data transmission to fixed locations.
  • "Fixed ultrafast access network" provides broadband services of at least 100 Mbps download speed.
  • "Mobile access network" is a wireless network providing connectivity in areas covered by the network using IMT standards.
  • "Backhaul network" connects the access network to the backbone network.
  • "Backbone network" connects backhaul networks across regions.
  • "Active network" contains both active and passive components, such as transponders and cables.
  • "Peak time" is the period when network load is highest, usually lasting one hour.
  • "Peak-time conditions" are the conditions expected during peak time.
  • "Premises passed" are end-user premises to which an operator can connect, within a 4-week period, for provision of broadband services.

Types of Broadband Networks

  • Fixed ultrafast access networks include fibre (FTTx) and advanced cable (DOCSIS 3.0 and above) networks.
  • Mobile networks utilize IMT standards across multiple generations (2G, 3G, 4G, 5G).
  • 5G networks are evolving to standalone networks, improving performance and enabling new scenarios.
  • Backhaul networks use copper, optical fibre, microwave, and satellite technologies to support both fixed and mobile access.

Compatibility Assessment under Article 106(2) of the Treaty

  • Certain broadband services may be classified as SGEIs (services of general economic interest).
  • Compensation for SGEI services isn't state aid if the Altmark criteria are met.
  • Rules for state aid in the form of public service compensation are in place.
  • Broadband services should not be subject to public service obligations in cases where the quality of service can be satisfactorily provided by undertakings in normal market conditions.

Compatibility Assessment under Article 107(3)(c) of the Treaty

  • For aid to be compatible, it must facilitate economic activity development and not negatively impact trading conditions.
  • The aid's positive effects need to outweigh the negative ones on competition.

Aid for the Deployment of Broadband Networks

  • Fixed and mobile broadband services are considered separate markets, with differing aid assessment rules.
  • Aid must be aimed at increasing connectivity and access, addressing market failures.
  • The aid should incentivize increased activity and investments in areas lacking sufficient connectivity.
  • It must not unduly affect trading conditions (i.e., be proportionate).

Compatibility Assessment of Take-Up Measures (Vouchers)

  • Vouchers may be compatible if they address market failures in broadband service adoption.
  • They need to be targeted to specific consumer groups with documented financial need.
  • Vouchers should not exceed 50% of the eligible costs for a service or upgrade.
  • State aid must not unreasonably distort market competition.

Transparency, Reporting, Monitoring

  • Member States must publish aid information in the EU Commission's transparency module or national websites.
  • Information on individual aid awards exceeding EUR 100,000 must be published within 6 months.
  • Aid information must be available for 10 years after the aid was granted, in a non-proprietary format.

Ex Post Evaluation Plan

  • The EU Commission may require ex post evaluations of aid schemes, particularly those with significant budgets.
  • The aim is to verify if aid correctly addressed market failures, supported economic activities, and did not cause distortions.

Final Provisions

  • EU Commission applies rules from publication date forward.
  • Member States must amend aid schemes within 12 months for consistency with the guidelines.
  • A two-month period for Member State responses is provided

Annexes (I, II, IV)

  • Detailed guidelines on mapping fixed and mobile broadband networks.
  • Information required from Member States regarding individual aid awards.
  • Descriptions of typical aid models used by Member States.

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