EC rules established for broadband state funding

The European Commission has established new rules to regulate the way in which member states can fund the development of broadband networks.

Designed to speed up the spread of next-generation connectivity throughout Europe, competition commissioner Neelie Kroes said a portion of the £270 billion that is forecast to be spent on high-speed web networks in Europe over the next decade could come from public sources.

State funding will be allowed where there are no private sources available or in circumstances where private investment would not prove profitable, and all internet service providers must be able to use whichever networks are created as a result of public funds being used.

Ms Kroes said: "Public funds are not always needed for public authorities to promote broadband deployment and, in any event, they should not crowd out or delay private investments."

Encouraging more widespread investment in high-speed internet access could result in more efficient use of VoIP solutions across Europe, while also delivering faster download speeds.

The UK government recently pledged to deliver universal connectivity by 2012.