The European Commission has approved the investment by the municipality of Amsterdam and other shareholders to be build an FTTH network. After a year of investigation and deliberation, the Commission concluded that the municipality participates in the project on the same terms as would a market investor. Therefore the Commission has concluded that no state aid is involved.
Under EU state aid rules, investments by public authorities in companies carrying out economic activities can be considered free of aid, if they are made on terms that a private investor operating under market conditions would have accepted (the market economy investor principle).
The City of Amsterdam is investing in a company building a FTTH network connecting 37,000 households within its city limits. The total equity investment in the project is EUR 18 million. The Amsterdam municipality owns one third of the shares, two private investors, ING Real Estate and Reggefiber together another third, while five housing corporations own the remaining third. The wholesale operator of the new fibre network was selected through a tender procedure and will provide open, non-discriminatory access to retail operators which offer TV, broadband and telephony services.
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