The EU's European Commission put forth the guidelines on Tuesday as part of an ongoing economic recovery campaign. The document outlines how states will be allowed to invest in broadband plans while still allowing local telcos and service providers to operate in the market.
The plan centers on some 1bn which the EU has committed as part of a project to provide 100 per cent broadband internet penetration in Europe.
"Broadband is of strategic importance because of its ability to accelerate the
contribution of these technologies to growth and innovation in all sectors of the
economy and to social and regional cohesion," wrote the commission.
"The Commission actively supports the widespread availability of broadband services for all the Europeans."
In the midst of the economic crisis, governments have been increasingly viewing broadband internet systems as a critical component to commerce. As a result, investment in new broadband systems has become a part of recovery acts in countries such as the US and Australia.
The EU warned, however, that such investment should not come at the expense of private companies. The commissioned cautioned its members to approach the investments as public works projects rather than an invitation to enter the ISP business.
"In such cases, state aid to broadband might become counterproductive to the objective pursued," the commission cautioned.
"The primary objective of State aid control in the field of broadband is therefore to ensure that State aid measures will result in a higher level of broadband coverage and penetration."
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