Consultation launched on broadband state aid in EU

A consultation has been initiated in Brussels by the European Union executive to discuss the conditions under which state aid can be allocated for broadband development.

The European Commission is aware of the importance of high-speed broadband in helping to deliver economic recovery throughout Europe and is working towards complete coverage in all 27 member states by next year.

Organisations have a month to submit their input to the consultation and all views will be taken into account when the executive announces solid guidelines within the next few months.

Neelie Kroes, competition commissioner for the European Commission, said: "My objective is to provide a clear and predictable framework for the application of EU state aid rules in this strategic sector."

The commission could support state aid in places where connectivity is lacking, as it could help facilitate VoIP solutions, faster downloads and benefits for businesses. However, it is less likely to be supported if internet service providers have already begun investing in improved networks.

In related news, a BBC report has revealed that the UK government has said it will allocate £1 million towards next-generation broadband research.