Public funding of broadband Internet networks in rural areas may be allowable under European state aid rules, according to draft guidelines issues by the European Commission. The proposed rules potentially open the door to billions of euros of state money in infrastructure projects, some of it as part of nationally-funded stimulus packages. The news will come as a boost to the telecoms industry, which will now see what willingness there is on part of local authorities or national governments to subsidize the extension of their broadband networks to rural areas. The EU typically frowns upon state investment in areas where private investors are willing to venture, and in this case has made very clear that investment in broadband networks would only be tolerated in areas that currently lack Internet connectivity.
