BRUSSELS, BELGIUM – The European Commission and European Investment Bank have announced a new a €500 million investment fund designed to improve broadband infrastructure across underserved areas of Europe.
The Connecting Europe Broadband Fund aims to invest between €1 million and €30 million in 7 to 12 broadband projects each year from 2017 to 2021, reads the news release. Overall, the Fund is expected to unlock additional investments between €1 billion and €1.7 billion in broadband deployment in underserved areas, where very high-capacity networks are not yet deployed.
Initial investors include KfW Bankengruppe from Germany, Cassa Depositi e Prestiti from Italy and Caisse des dépôts et consignations from France, in addition to the EU. The Fund will also accept investments from other institutions and private investors.
The operational launch of the Fund is expected to take place mid-2017, and it aims to have invested in 20 countries by 2021.
"I am grateful to our financial partners for the establishment of this broadband Fund”, said commissioner for digital economy and society Günther H. Oettinger, in the release. “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. It is a great step towards a European Gigabit Society for all."
