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Event
Public event
#Tech, Media, Telecom

State Aid for broadband networks

21 November 2018
10:30
- 13:00

Le Bouche à Oreille
11 Rue Félix Hap
1040 Brussels

About
Speakers
Event materials

About

The policy recommendations of our new research project ‘State Aid for Broadband Infrastructure in Europe: Assessment and Policy Recommendations’, led by CERRE Joint Academic Director Prof. Marc Bourreau (Telecom ParisTech) and CERRE Research Fellow Richard Feasey (University College London) were presented during this high-level event, on 21 November.

This report looks at areas of controversy in State Aid for the rolling out of broadband infrastructure, such as the various funding instruments and sources, the disparities in aid intensity and the variances in delivery models. It also includes a set of recommendations for efficient competition rules, which should ultimately support the achievement of the EU Digital Agenda and the Gigabit Society commitments for 2025, benefiting citizens and Europe as a whole.

Background

Twenty five years ago the European telecoms sector was substantially privatised and has obtained its finance from private capital markets. However, in recent years, public funds have been reintroduced into telecoms, principally in support of the deployment of ‘Next Generation’ fixed broadband access networks to guarantee access to quality networks to all users.

Since 2015 the German and Italian Governments have announced plans to spend €3 billion and €4 billion respectively, and the UK Government has spent at least €2 billion. The French Très Haut Débit scheme anticipates investment by both private and public interests of €13 billion. Cumulative State Aid expenditure across Europe today is likely to be running at over €5 billion per year.

Moreover, Commission targets for the further deployment of ‘Very High Capacity Networks’ imply a further significant increase in public funding. If these targets are to be met, public subsidies of several hundreds of billions of euros are likely to be required over the next 10 years.

Speakers

Bruno Liebhaberg (Website)
Bruno Liebhaberg
Executive Chairman¹ ²

Bruno Liebhaberg is Executive Chairman of the think tank Centre on Regulation in Europe (CERRE) which he founded in 2010.

From 2018 to 2021, he was also the first Chairman of the European Union Observatory on the Online Platform Economy. He is also an Honorary Professor at the Université Libre de Bruxelles’ Solvay Brussels School of Economics and Management (SBS-EM ULB) where he taught from 1979 to 2018. Earlier in his career, he advised former European Commission President Jacques Delors on industry and R&D matters related to the completion of the EU Single Market.

He holds a Master’s in management sciences from SBS-EM ULB and a Ph.D. in Industrial Relations from the London School of Economics and Political Science.

 

¹Also representing B.LIEBHABERG S.A., Director General

²Member of the Strategic Committee

Bruno Liebhaberg is Executive Chairman of the think tank Centre on Regulation in Europe (CERRE) which he founded in 2010.

From 2018 to 2021, he was also the first Chairman of the European Union Observatory on the Online Platform Economy. He is also an Honorary Professor at the Université Libre de Bruxelles’ Solvay Brussels School of Economics and Management (SBS-EM ULB) where he taught from 1979 to 2018. Earlier in his career, he advised former European Commission President Jacques Delors on industry and R&D matters related to the completion of the EU Single Market.

He holds a Master’s in management sciences from SBS-EM ULB and a Ph.D. in Industrial Relations from the London School of Economics and Political Science.

 

¹Also representing B.LIEBHABERG S.A., Director General

²Member of the Strategic Committee

Harald Gruber
Harald Gruber
Head of the Digital Infrastructure Division
European Investment Bank’s Projects Directorate

Harald Gruber is Head of the Digital Infrastructure Division at the European Investment Bank’s Projects Directorate. As such, he oversees project appraisal in the ICT sectors and advises on the Bank’s business strategy with respect to innovation policy and the knowledge economy in general.

His publications include ‘The Economics of Mobile Telecommunications’ at Cambridge University Press. He has also co-authored articles in particular on the mobile telecommunications sector.

Harald Gruber is Head of the Digital Infrastructure Division at the European Investment Bank’s Projects Directorate. As such, he oversees project appraisal in the ICT sectors and advises on the Bank’s business strategy with respect to innovation policy and the knowledge economy in general.

His publications include ‘The Economics of Mobile Telecommunications’ at Cambridge University Press. He has also co-authored articles in particular on the mobile telecommunications sector.

Marc Bourreau
Marc Bourreau
Academic Co-Director
and Télécom Paris

Marc Bourreau is a Academic Co-Director at CERRE and Professor of Economics at Télécom Paris (Institut Polytechnique de Paris). He is affiliated with the interdisciplinary institute for innovation (i3) for his research.

His research focuses on competition policy and regulation, digital markets, and telecommunications.

Marc holds a Ph.D. in Economics from the University of Paris Panthéon Assas.

Marc Bourreau is a Academic Co-Director at CERRE and Professor of Economics at Télécom Paris (Institut Polytechnique de Paris). He is affiliated with the interdisciplinary institute for innovation (i3) for his research.

His research focuses on competition policy and regulation, digital markets, and telecommunications.

Marc holds a Ph.D. in Economics from the University of Paris Panthéon Assas.

Richard Feasey (1)
Richard Feasey
CERRE Senior Advisor
Tech, Media, Telecom

Richard Feasey is a CERRE Senior Adviser, an Inquiry Chair at the UK’s Competition and Markets Authority and Member of the National Infrastructure Commission for Wales.

He lectures at University College and Kings College London and the Judge Business School.

He has previously been an adviser to the UK Payments Systems Regulator, the House of Lords EU Sub-Committee and to various international legal and economic advisory firms.

He was Director of Public Policy for Vodafone plc between 2001 and 2013.

Richard Feasey is a CERRE Senior Adviser, an Inquiry Chair at the UK’s Competition and Markets Authority and Member of the National Infrastructure Commission for Wales.

He lectures at University College and Kings College London and the Judge Business School.

He has previously been an adviser to the UK Payments Systems Regulator, the House of Lords EU Sub-Committee and to various international legal and economic advisory firms.

He was Director of Public Policy for Vodafone plc between 2001 and 2013.

Ambre Nicolle Square
Ambre Nicolle
Research Fellow
Institute of Strategy, Technology and Organization (ISTO)

Ambre Nicolle is a Research Fellow at the Institute of Strategy, Technology and Organization (ISTO) at the Ludwig Maximilian University of Munich.

She completed a PhD in Economics at the University of Montpellier with her dissertation on the recent evolution of mobile telecommunications markets. Her research primarily focuses on estimating demand for mobile services and handsets.

Ambre Nicolle is a Research Fellow at the Institute of Strategy, Technology and Organization (ISTO) at the Ludwig Maximilian University of Munich.

She completed a PhD in Economics at the University of Montpellier with her dissertation on the recent evolution of mobile telecommunications markets. Her research primarily focuses on estimating demand for mobile services and handsets.

Event materials

REPORT | State Aid for broadband infrastructure in Europe: assessment and policy recommendations
PRESENTATION | State Aid for broadband infrastructure in Europe: assessment and policy recommendations (R. Feasey, Prof. M. Bourreau & A. Nicolle)
PRESENTATION | EIB investment in digital infrastructure (H. Gruber)

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Centre on Regulation in Europe asbl (CERRE)

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