Doubt Over Scottish Broadband Project
Posted: 13th Mar, 2003 By: MarkJ
Scottish Enterprise's flagship broadband initiative, Project Atlas, could be in trouble following a new European competition ruling on state involvement in the telecoms sector:
The revelation follows the approval of new plans by European Union governments to invest millions into broadband Internet and mobile telephony systems.
However, the ruling applies to poor regions and no new infrastructure may benefit from structural funds if a competing service is already available.
Scottish Enterprise and Thus, the Glasgow-based telecoms company, have asked for clarification from the European Commission (EC) on whether Project Atlas contravenes European rules on state aid.
Scottish Enterprise says it is responding to market failure by introducing more competition and helping to reduce prices. Thus claims Scottish Enterprise is effectively establishing an alternative carrier. The EC is expected to rule on the case in May.
Confirming Scottish Enterprise's decision to ask for legal clarification, a Scottish Enterprise spokesman said: "Atlas is a complex project with potentially huge benefits to Scotland's economy and represents a significant investment by Scottish Enterprise. We firmly believe Atlas will address a real market failure in this area, which is having a negative impact on Scottish businesses.
However, given recent speculation and uncertainty surrounding this project, we are notifying the European Commission to seek legal clearance before we reach the implementation stage."
It remains to be seen what the outcome will be, although those involved are hopeful that the project will soon be able to continue. More in The Herald newspaper.
The revelation follows the approval of new plans by European Union governments to invest millions into broadband Internet and mobile telephony systems.
However, the ruling applies to poor regions and no new infrastructure may benefit from structural funds if a competing service is already available.
Scottish Enterprise and Thus, the Glasgow-based telecoms company, have asked for clarification from the European Commission (EC) on whether Project Atlas contravenes European rules on state aid.
Scottish Enterprise says it is responding to market failure by introducing more competition and helping to reduce prices. Thus claims Scottish Enterprise is effectively establishing an alternative carrier. The EC is expected to rule on the case in May.
Confirming Scottish Enterprise's decision to ask for legal clarification, a Scottish Enterprise spokesman said: "Atlas is a complex project with potentially huge benefits to Scotland's economy and represents a significant investment by Scottish Enterprise. We firmly believe Atlas will address a real market failure in this area, which is having a negative impact on Scottish businesses.
However, given recent speculation and uncertainty surrounding this project, we are notifying the European Commission to seek legal clearance before we reach the implementation stage."
It remains to be seen what the outcome will be, although those involved are hopeful that the project will soon be able to continue. More in The Herald newspaper.
Latest UK ISP News
Cheap BIG ISPs for 100Mbps+
150,000+ Customers | View More ISPs
Cheapest ISPs for 100Mbps+
Modest Availability | View More ISPs
Latest UK ISP News
Cheap BIG ISPs for 100Mbps+
Large Availability | View All
Helpful ISP Guides and Tips
Sponsored Links
The Top 15 Category Tags
- FTTP (6163)
- BT (3694)
- Politics (2780)
- Business (2489)
- Openreach (2447)
- Building Digital UK (2365)
- Mobile Broadband (2205)
- FTTC (2094)
- Statistics (1953)
- 4G (1859)
- Virgin Media (1814)
- Ofcom Regulation (1619)
- Fibre Optic (1492)
- Wireless Internet (1478)
- 5G (1456)
Sponsored
Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules