IDEAS home Printed from https://ideas.repec.org/a/eee/telpol/v44y2020i7s0308596120300665.html
   My bibliography  Save this article

Assessing fifteen years of State Aid for broadband in the European Union: A quantitative analysis

Author

Listed:
  • Bourreau, Marc
  • Feasey, Richard
  • Nicolle, Ambre

Abstract

In this paper, we document how public funds, or State Aid, have been used to support the deployment of broadband infrastructure in Europe since 2003. Our descriptive analysis relies on a unique data set on all the broadband measures notified to the European Commission by Member States between 2003 and 2018. We identify two waves of State Aid for broadband: one for the deployment of basic broadband, and a more recent one for the roll out of next-generation access networks. The use of State Aid is very heterogeneous across Member States, with a few large countries representing the bulk of the cases. The objective of most plans is to expand broadband coverage. The typical project relies mainly on public funds, and involves a direct grant, an open tender, and a contract for 3–5 years. Access obligations are imposed on networks deployed with State Aid, using a benchmarking approach in most cases. Finally, we show that notifications are associated with a relatively high level of broadband coverage in notifying countries, suggesting that public investment is taking over from private investment.

Suggested Citation

  • Bourreau, Marc & Feasey, Richard & Nicolle, Ambre, 2020. "Assessing fifteen years of State Aid for broadband in the European Union: A quantitative analysis," Telecommunications Policy, Elsevier, vol. 44(7).
    • Handle: RePEc:eee:telpol:v:44:y:2020:i:7:s0308596120300665
    DOI: 10.1016/j.telpol.2020.101974
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0308596120300665
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.telpol.2020.101974?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Boik, Andre, 2017. "The economics of universal service: An analysis of entry subsidies for high speed broadband," Information Economics and Policy, Elsevier, vol. 40(C), pages 13-20.
    2. Belloc, Filippo & Nicita, Antonio & Alessandra Rossi, Maria, 2012. "Whither policy design for broadband penetration? Evidence from 30 OECD countries," Telecommunications Policy, Elsevier, vol. 36(5), pages 382-398.
    3. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    4. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Niu, Geng & Jin, XiaoShu & Wang, Qi & Zhou, Yang, 2022. "Broadband infrastructure and digital financial inclusion in rural China," China Economic Review, Elsevier, vol. 76(C).
    2. Briglauer, Wolfgang & Köppl-Turyna, Monika & Schwarzbauer, Wolfgang & Bittó, Virág, 2023. "Evaluating the effects of ICT core elements on CO2 emissions: Recent evidence from OECD countries," Telecommunications Policy, Elsevier, vol. 47(8).
    3. Oughton, Edward J. & Comini, Niccolò & Foster, Vivien & Hall, Jim W., 2022. "Policy choices can help keep 4G and 5G universal broadband affordable," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    4. Briglauer, Wolfgang & Cambini, Carlo & Gugler, Klaus, 2023. "Economic benefits of high-speed broadband network coverage and service adoption: Evidence from OECD member states," Research Papers 23, EcoAustria – Institute for Economic Research.
    5. Marc Bourreau & Lukasz Grzybowski & Ángela Muñoz-Acevedo, 2023. "The Efficiency of State Aid for the Deployment of High-Speed Broadband: Evidence from the French Markets," CESifo Working Paper Series 10440, CESifo.
    6. Wolfgang Briglauer & Michał Grajek, 2021. "Effectiveness and efficiency of state aid for new broadband networks: Evidence from OECD member states," ESMT Research Working Papers ESMT-21-01, ESMT European School of Management and Technology.
    7. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2023. "The South Korean case of deploying rural broadband via fiber networks by implementing universal service obligation and public-private partnership based project," Telecommunications Policy, Elsevier, vol. 47(3).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Abrardi, Laura & Cambini, Carlo, 2019. "Ultra-fast broadband investment and adoption: A survey," Telecommunications Policy, Elsevier, vol. 43(3), pages 183-198.
    2. Marc Bourreau & Lukasz Grzybowski & Ángela Muñoz-Acevedo, 2023. "The Efficiency of State Aid for the Deployment of High-Speed Broadband: Evidence from the French Markets," CESifo Working Paper Series 10440, CESifo.
    3. Lee, Hyeongjik & Jeong, Seonkoo & Lee, Kwanghee, 2023. "The South Korean case of deploying rural broadband via fiber networks by implementing universal service obligation and public-private partnership based project," Telecommunications Policy, Elsevier, vol. 47(3).
    4. Hasbi, Maude & Bohlin, Erik, 2021. "Impact of Broadband Quality on Median Income and Unemployment: Evidence from Sweden," 23rd ITS Biennial Conference, Online Conference / Gothenburg 2021. Digital societies and industrial transformations: Policies, markets, and technologies in a post-Covid world 238026, International Telecommunications Society (ITS).
    5. Lindlacher, Valentin, 2021. "Low demand despite broad supply: Is high-speed Internet an infrastructure of general interest?," Information Economics and Policy, Elsevier, vol. 56(C).
    6. Ioannou, Nikos & Logothetis, Vangelis & Petre, Konstantin & Tselekounis, Markos & Chipouras, Aris & Katsianis, Dimitris & Varoutas, Dimitris, 2021. "Network modeling approaches for calculating wholesale NGA prices: A full comparison based on the Greek fixed broadband market," Telecommunications Policy, Elsevier, vol. 45(9).
    7. Martin Quinn & Miguel Godinho de Matos & Christian Peukert, 2022. "The Welfare Effects of Mobile Internet Access - Evidence from Roam-Like-at-Home," CESifo Working Paper Series 9612, CESifo.
    8. Falk, Martin & Hagsten, Eva, 2021. "Impact of high-speed broadband access on local establishment dynamics," Telecommunications Policy, Elsevier, vol. 45(4).
    9. Briglauer, Wolfgang & Dürr, Niklas S. & Falck, Oliver & Hüschelrath, Kai, 2019. "Does state aid for broadband deployment in rural areas close the digital and economic divide?," Information Economics and Policy, Elsevier, vol. 46(C), pages 68-85.
    10. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2021. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," International Journal of Industrial Organization, Elsevier, vol. 74(C).
    11. Thonipara, Anita & Sternberg, Rolf G. & Proeger, Till & Haefner, Lukas, 2020. "Assessing the Digital Divide and its Regional Determinants: Evidence from a Web-Scraping Analysis," ifh Working Papers 25/2020, Volkswirtschaftliches Institut für Mittelstand und Handwerk an der Universität Göttingen (ifh), revised 2020.
    12. Rosario, Pérez-Morote & Carolina, Pontones-Rosa & Montserrat, Núñez-Chicharro & Elena, Merino-Madrid, 2021. "Determinant factors of individuals’ decision to emigrate in rural Spain: The role of ICT-based public policies," Technology in Society, Elsevier, vol. 67(C).
    13. Oliver Budzinski & Sophia Gaenssle & Nadine Lindstädt-Dreusicke, 2021. "The battle of YouTube, TV and Netflix: an empirical analysis of competition in audiovisual media markets," SN Business & Economics, Springer, vol. 1(9), pages 1-26, September.
    14. Matteucci, Nicola, 2021. "Procuring NGA infrastructure: The performance of EMAT auctions in Italy," Telecommunications Policy, Elsevier, vol. 45(1).
    15. Fourberg, Niklas & Korff, Alex, 2020. "Fiber vs. vectoring: Limiting technology choices in broadband expansion," Telecommunications Policy, Elsevier, vol. 44(8).
    16. Duso, Tomaso & Nardotto, Mattia & Seldeslachts, Jo, 2021. "A Retrospective Study of State Aid Control in the German Broadband Market," CEPR Discussion Papers 15779, C.E.P.R. Discussion Papers.
    17. Valentín-Sívico, Javier & Canfield, Casey & Low, Sarah A. & Gollnick, Christel, 2023. "Evaluating the impact of broadband access and internet use in a small underserved rural community," Telecommunications Policy, Elsevier, vol. 47(4).
    18. Klein, Gordon J., 2022. "Fiber-broadband-internet and its regional impact—An empirical investigation," Telecommunications Policy, Elsevier, vol. 46(5).
    19. Briglauer, Wolfgang & Dürr, Niklas & Gugler, Klaus, 2019. "A Retrospective Study on the Regional Benefits and Spillover Effects of High-Speed Broadband Networks: Evidence from German Counties," 30th European Regional ITS Conference, Helsinki 2019 205171, International Telecommunications Society (ITS).
    20. Briglauer, Wolfgang & Dürr, Niklas S. & Gugler, Klaus, 2019. "A retrospective study on the regional benefits and spillover effects of high-speed broadband networks: Evidence from German counties," ZEW Discussion Papers 19-026, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    State aid; Broadband; Public policy; European Union;
    All these keywords.

    JEL classification:

    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets
    • L50 - Industrial Organization - - Regulation and Industrial Policy - - - General
    • L96 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Telecommunications

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:telpol:v:44:y:2020:i:7:s0308596120300665. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/30471/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.