EU Approves €2.1 Bn German Scheme for 4G, 5G Networks

EU approved on Tuesday a €2.1 billion scheme to roll out 4G and 5G in areas currently with 2G.

New German Scheme for Fast 5G Adoption Across Europe

The European Commission said Mobilfunkinfrastrukturgesellschaft mbH, a German company, will handle the scheme. EU will also give grants to companies to build and operate passive infrastructure for the scheme. The European Commission said that telcos, construction and fiber optics companies will benefit the most from this scheme.

Also, the EU listed out areas where it will provide public support for infrastructure. These include areas where,

1. No mobile network is present
2. Only mobile networks capable of supporting 2G and below are available
3. No private operator plans to deploy 4G and above in the near future

Executive VP Margrethe Vestager, who is in charge of competition policy, said, “this €2.1 billion scheme will enable the provision of high-performance mobile services to citizens".

She also said that the scheme will bring significant mobile network capacity and availability, while encouraging competition.

"All mobile network operators will obtain access to the infrastructure on equal terms, so the scheme will foster competition to the benefit of consumers. It will bridge a digital divide, reduce inequalities and ensure seamless communication", she said.

Vestager also said the scheme is in line with EU's ambition to enable seamless mobile connectivity across the continent.

The European Commission further said, "the scheme has an incentive effect to further develop the deployment and operation of passive mobile infrastructure for the provision of high-performance mobile services in the target areas in a manner that promotes connectivity".