EU launches £420m fund for broadband infrastructure

The European Commission and the European Investment Bank (EIB) have announced plans for a €500 million (£420 million) fund for broadband infrastructure upgrades across the EU.

The Connecting Europe Broadband Fund was described as an “important step” in deploying high-capacity networks necessary to drive Europe’s digital economy and society.

Over the next 10 years the fund will help the EU achieve its ‘Gigabit Society’ pledge - delivering 100Mbps+ for everyone by 2025.

The European Commission says meeting these broadband targets could boost GDP across the UK by €910 billion as well as create more than one million jobs.

Günther H. Oettinger, commissioner for digital economy and society, said: "I am grateful to our financial partners for the establishment of this broadband Fund.

“It is an important development for smart and efficient funding of broadband projects, especially in underserved areas, in line with the spirit and the letter of the Investment Plan.”

“High-speed internet is fundamental to the success and development of businesses,” said EIB President Werner Hoyer.

“Until today, smaller-scale broadband projects did not have easy access to funding and EU financial instruments did not exist.

“Consequently, projects in less populated or rural areas, where purely private-led initiatives may not see the economic benefits of deploying broadband networks, were difficult to implement.

“The new fund will help bridge this market gap, and I am glad that the EU Bank is part of this joint initiative.”

The launch of the fund comes after research from consumer organisation Which? found broadband is now seen as a modern-day essential alongside food, housing, water and energy.

A poll by the group found nine in 10 people think it is essential to their day-to-day lives.

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(Image: Kainet)