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The absence of subsidies from Brussels for the rollout of broadband networks also has its advantages, as concluded by Sven Maltha this week in the Automatiseringsgids.
Earlier this week, it was announced that there will be no funding from the Brussels Connecting Europe Facility (CEF) for the deployment of high-quality broadband networks (NGA). European Commissioner Neelie Kroes expressed disappointment that out of the proposed 9.2 billion euros allocated to broadband in the new European budget, only 1 billion remained. Europe will now invest this amount in 'digital services', leaving no room for investment in fast broadband networks.
Over the past year and a half, significant energy, time, and resources have been invested in regional plans for the deployment of fast broadband in rural areas (the so-called white spots) in our country. With the additional expected funding from European CEF resources not materialising, it is now more essential to find financial solutions to cover the business cases within the national capital market. ABN-Amro recently concluded in its TMT report that companies in the Dutch technology, media, and telecom sector often lack sufficient access to financing capital for innovative plans.
Task for the government
Despite the absence of Brussels funding (CEF), there are still opportunities for feasible business cases in rural areas if the market and government cooperate effectively. It is regrettable that support from Brussels is lacking, but at least there is now clarity. An additional benefit is that the Netherlands no longer needs to subsidise the rollout of much larger rural areas in other countries, and Dutch innovative entrepreneurs are not dependent on Brussels bureaucracy. However, the broadband market would benefit from better collaboration between funders and innovative initiators in rural areas. Improved information on feasible financing models and increased transparency on the part of funders can assist in this regard. I believe that this is also a task for the government.
16th February 2013