Birmingham Gets EC Funding For Superfast Broadband

The European Commission has approved the use of state aid to be used for the financing of an ultra-fast broadband network in Birmingham.

The commission found that the project was in line with EU state aid rules and believes it will be genuinely open to all operators and therefore promote competition.

This has paved the way for a €6 million (£4.8m) grant for the project, whichis part of the government’s ‘super-connected cities’ competition, in which £100 million in funding is available to construct high speed networks in ten UK cities.

EC Impressed

The EC investigation found that the network was designed in a competitive manner and that some aspects of it exceeded the minimum requirements of the EU Broadband Guidelines. Open access will be granted for at least 25 years to alternative operators when the EU minimum is only seven years, while the network will also be available on a wholesale basis to ensure more competition at retail level.

“Investments in ultra-fast broadband networks contribute to promoting growth in line with the EU’s Digital Agenda,” said Joaquin Almunia, If such networks are built with the help of taxpayers’ money, it is important to ensure thriving competition on the subsidised networks, so that local businesses and citizens can benefit from continuously improving broadband services at competitive prices.”

The network is targeted at two districts of Birmingham, where private operators have no or limited investment plans in the next three years, meaning that most consumers would only be able to use basic broadband services or expensive leased line business services.

The project will offer “significant enhanced technological characteristics” when compared to existing networks, something which is expected to meet demands from SMEs, especially those in the creative industries.

Birmingham City Council has also announced plans to introduce a £100 million public Wi-Fi network in the city that would make use of city infrastructure such as tower blocks and lampposts.

Are you up to speed on the Internet? Try our quiz