France increases broadband investment

France has announced a major investment into infrastructure which can power IP telephony solutions.

In an announcement on January 18th 2010 French prime minister Francois Fillon said the government would make a series of low-interest loans to businesses, to encourage them to develop broadband networks outside major cities. The networks will stimulate VoIP traffic.

The program, costing €2 billion, has been designed to boost the country's economy. It will increase the country's connectivity and give it a more resilient network infrastructure, allowing VoIP traffic to pass more smoothly throughout the country's network.

"We are at the dawn of a new era of high-speed Internet and fibre-optic networks," said Mr Fillon in a speech.

"500,000 French people don't have access to high speed internet at all. This is not acceptable."

France has traditionally had good provision of high-speed broadband within its urban networks, but poor provision in the more rural areas and provinces. The program will encourage incumbent carriers and competitors to jointly built local networks. This will prevent the formation of monopolies.

VoIP requires a broadband internet connection, so the announcement bodes well for VoIP's future in France's rural areas.