The scheme will finance the deployment of performant backhaul networks and the necessary base stations to offer 5G mobile services
Italy to support the roll out of 5G mobile networks with a €2bn aid. (Credit: F. Muhammad from Pixabay)
The European Commission (EC) has green-lighted a €2bn scheme of the Italian government for supporting the roll out of 5G mobile networks in the country.
The approval was made under the European Union (EU) State aid rules.
According to the EC, the scheme will be made available via the EU’s Recovery and Resilience Facility (RRF), which aims to mitigate the economic and social impact of the Covid-19 pandemic.
The scheme is said to be part of the Italian government’s strategy to address the requirements of citizens and businesses amid the country’s digitalisation. It also contributes to the strategic objectives of the EU pertaining to the digital transition, said the EC.
EC Executive Vice-President Margrethe Vestager, in charge of competition policy, said: “This €2 billion Italian scheme, entirely funded via the RRF, will support the deployment of high performing 5G mobile networks.
“This will enable consumers and business to access high-quality 5G services, contributing to the economic growth of the country and to the EU’s strategic objectives relating to the digital transition.”
The Italian scheme involves aid provided through direct grants to electronic communications services providers. It will finance the deployment of performant backhaul networks and the required base stations to offer 5G mobile services.
The scheme’s objective is to ensure widespread availability of high-performing networks that can provide high-quality and dependable electronic communication access services.
Found to be necessary by the Commission, the scheme is said to be balanced to address market failures, which include a lack of existing or planned mobile networks that will sufficiently cope with the needs of end-users.
The scheme has an incentive effect as it enables high-performing mobile networks to be rolled out and operated. Private operators are otherwise not ready to deploy them because of high costs, said the EC.
Besides, the Italian scheme has enough safeguards to make sure that undue distortions of competition are restricted and that the aid does not impact trading conditions adversely.
Recently, the EC secured a deal for its proposed Digital Services Act (DSA) after a political agreement was reached between the European Parliament and the EU member states.