Brussels, 16 June 2023
The European Commission has approved, under EU State aid rules, a €680 million Spanish scheme made available through the Recovery and Resilience Facility (‘RRF’) to roll out equipment and infrastructure for high-performing 5G standalone networks in underserved rural areas. The measure is part of Spain’s strategy to address the needs of citizens and businesses in the context of the digitalisation of the country. The scheme also contributes to the EU’s strategic objectives relating to the digital transition.
The Spanish areas concerned have less than 10,000 inhabitants, and no current or planned investment in 4G networks providing speeds of at least 50 Mbps download. Under the scheme, the aid can be granted until 31 December 2025 and the 5G mobile networks will need to enter into operation by February 2026, at the latest. The aid will take the form of direct grants to electronic communications operators.
The Commission assessed the scheme under EU State aid rules, in particular, Article 107(3)(c) of the Treaty on the Functioning of the European Union, which allows State aid to facilitate the development of certain economic activities or of certain economic areas. On this basis, the Commission approved the Spanish scheme under EU State aid rules.
Executive Vice-President Margrethe Vestager, in charge of competition policy said:
“This €680 million Spanish scheme, fully funded via the Recovery and Resilience Facility, will support the provision of high performing 5G mobile services in underserved areas of Spain. This will help consumers and businesses in rural areas to access high quality 5G services, contributing to the economic growth of Spain and to the EU’s strategic objectives relating to digital transition, while protecting the level playing field in the single market.”
A press release is available online.
Source – EU Commission