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EC outlines plans for broadband financing

21 октября 2011

The European Commission (EC) has laid out more elements of its €9.2 billion ($12.59 billion) plan to help finance the buildout of new broadband networks.

Through its Connecting Europe Facility (CEF) initiative, the EC has allocated €7 billion ($9.58 billion) in debt/equity financing and guarantees to build out broadband networks in underserved areas with the remaining amount coming in grants to build digital network infrastructure supporting a single market.

To fund the purchase of broadband network infrastructure, the CEF funding would complement private and/or public investments.

Similar to broadband projects paid for by broadband stimulus funding in the U.S. market, the EC expects to see project proposals from not only traditional incumbent service providers, but also emerging providers including utilities, cooperative organizations and local government organizations.

Ultimately, the EC hopes that the CEF could drive €50-100 billion ($68.4 - USD136.9 billion) in new broadband investment. This money would then be applied to the €270 billion ($369.7 billion) cost to meet the EU's broadband goals outlined in its Digital Agenda.

Источник: Fierce Telecom

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