Gigabit-capable infrastructure; application for funding

The Free State of Bavaria is promoting the expansion of gigabit-capable broadband networks in Bavaria.

Description

Purpose

Connection to future-proof network infrastructures is a key location factor in municipalities. In rural areas, it is virtually impossible to build a nationwide gigabit-capable infrastructure without funding due to the low cost of expansion and operation. Bavaria's gigabit funding program, the only one of its kind in Germany, provides targeted support to municipalities for the provision of gigabit-capable infrastructure in areas where no roll-out is being carried out by the municipalities themselves.

The new funding is primarily intended to benefit commercial connections, provided they do not yet have a reliable network with bandwidths of at least 200 Mbit/s symmetrical (upload and download), either at present or as a result of a self-build expansion in the next three years. Private households can benefit if reliable coverage with at least 100 Mbit/s download is not available or at least foreseeable.

Object

Funding is provided for expenditure by the grantee on private or municipal network operators (viability gap model) or expenditure by the grantee for the construction of its own passive broadband infrastructure (operator model).

Beneficiaries

Grant recipients are municipalities, associations of municipalities and municipal associations in the Free State of Bavaria.

Eligible costs

Eligible costs in the viability gap model are the expenses incurred to close the viability gap and in the operator model the expenses incurred to build the passive infrastructure less lease income.

Type and amount

The funding rate and the maximum funding amount per municipality are determined by the granting authority.

The municipalities receive maximum subsidies of EUR 2,500 to EUR 6,000 per address in the "gray area" at a subsidy rate of 80% to 90%. Municipalities with low financial strength can benefit from a hardship clause.

The maximum subsidy amounts per municipality are between EUR 3 million and EUR 8 million.

Further information on the funding conditions can be found in an information document published on the website of the Bavarian Broadband Center (see "Related links").

Other

In addition, particularly poorly served areas (so-called "white NGA spots"; previously served with less than 30 Mbit/s download) can receive funding under the federal broadband program. In order to raise the lower federal subsidy rates to Bavarian levels, the Free State provides subsidies for co-financing so that sufficient funds are available in such areas.

Prerequisites

Areas of a municipality that are not yet covered by a next generation access network (NGA network) (known as a "white area") or are covered by only one NGA network (known as a "gray area") and fall below certain minimum bandwidths ("pick-up thresholds") are eligible as development areas.

Residential connections in gray or white spots are eligible if they are not yet supplied with at least 100 Mbit/s download.

Commercial lines in gray or white areas are eligible if they are not yet supplied with at least 200 Mbit/s symmetrical (i.e., in download and upload) and are also not yet supplied with more than 500 Mbit/s in download.

Procedure

The funding procedure under the Bavarian Gigabit Guideline is clearly structured in 9 modules. Numerous sample documents and supplementary guides are available to support the municipalities (see "Further links").

1. inventory in the municipal area

  • Municipality determines current coverage of broadband services in accordance with BayGibitR specifications and documents actual coverage in an address list. In addition, an overview map is created.

2nd market survey with preliminary development area

  • The municipality publishes the address list and map from the inventory together with a query about the network operators' own expansion plans for the next three years. The comment period of at least one month is to be extended on request.
  • Municipality requests network operators to comment on incompleteness and errors in the presentation of actual supply.

3 Publication of results of market survey

  • Municipality publishes the result of the market investigation in accordance with the sample document.

4. publication of announcement of selection procedure

4a. in the viability gap model:

  • Municipality publishes the announcement of the selection procedure; here, the municipality provides information on the minimum requirements for the addresses to be covered, among other things.
  • If there are only one or two bidders in the selection procedure: Municipality commissions Bavarian Broadband Center to check the plausibility of the bids.

4b. In the operator model:

  • Municipality publishes the announcement for the selection of a network operator (lessee) and specifies possible connection points.
  • If there are only one or two bidders in the network operator selection process: Municipality commissions Bavarian Broadband Center to check the plausibility of the bids.
  • Municipality concludes cooperation agreement with network operator. (Note: Contract does not take effect until grant notice is issued).
  • Municipality plans the passive infrastructure to be set up in consultation with the future tenant (if necessary, invitation to tender for planning services).
  • The municipality publishes the invitation to tender for the construction of the passive infrastructure.

5. publication of the result of the selection procedure

  • Municipality publishes the intended selection decision of the future network operators.

6. procedure at district government

  • Municipality submits funding application to the locally responsible district government.
  • After reviewing the documents, the district government issues the notification of funding.

7. cooperation agreement or commissioning of construction work

7a. In the profitability gap model:

  • Municipality concludes cooperation agreement with the selected network operator.

7b. In the operator model:

  • Municipality commissions the construction of the passive network infrastructure. (Note: For the cooperation agreement, see 4b.).

8. publication of subsidy profile

  • Municipality presents the planned infrastructure in a funding profile.

9. publication of final project description

  • Municipality documents the constructed infrastructure in a final project description.
  • The funding profile and final project description are published on the central online portal for 10 years.

Deadlines

Bavarian gigabit funding runs until the end of 2025, and funding applications can be submitted until September 30, 2025.

Required documents

  • The application under the viability gap model must be accompanied by the following documents:

    • Documentation of the actual supply (building-specific presentation based on the address list; cf. No. 4.3 BayGibitR, as well as cartographic presentation).
    • Documentation of the market investigation (in particular, published announcement text with address list; cf. Nos. 4.3 and 4.4 BayGibitR, as well as cartographic representation)
    • Result of the market investigation (cf. No. 4.9 BayGibitR)
    • Documentation (of the participation competition and) of the selection procedure (in particular published announcement text including address list and cartographic representation of the development area)*.
    • Result of the selection procedure including bid evaluation and selection decision in accordance with the defined selection criteria as well as documentation of the final development area based on the address list and a cartographic representation
    • the selected offer(s) including confirmation of the selected network operator(s) according to No. 7.7 BayGibitR
    • Resolution of the responsible body on the intended selection decision and the financing of the measure
    • Plausible presentation of the economic viability gap and, if applicable, result of the plausibility check by the Bavarian Broadband Centre (cf. Nos. 7.9, 7.10 BayGibitR and No. 8 BayGibitR)
    • If applicable, proof of power of representation (if the applicant is acting on behalf of several municipalities)
    • If applicable, copy of the application for an Infrakredit Breitband from the LfA-Förderbank Bayern (LfA) as well as the consent to the exchange of data between the granting authority and the LfA.
    • Declaration of the applicant on the cooperation agreement (cf. No. 9.4 BayGibitR)
    • If applicable, agreement on inter-municipal cooperation
    • Confirmation by the selected network operator(s) that there are no unfulfilled recovery orders based on a previous decision by the European Commission to determine the inadmissibility of aid and its incompatibility with the internal market (cf. No. 15 letter a BayGibitR)
    • Confirmation by the selected network operator(s) that it is not a company in difficulty within the meaning of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ EU 2014/C 249/01) (cf. No. 15 letter b BayGibitR).
    • Data sheet Recording of evaluation data
    • If applicable, presentation of the average financial strength of the last five years (if consideration of the "hardship clause" is requested).

    The granting authority may request further documents in order to check the eligibility of the planned project.

  • The application under the operator model shall be accompanied by the following documents:

    • Itemised breakdown of expenditure for the construction of passive infrastructure (cf. No. 12.1 letter f BayGibitR)
    • Decision of the responsible body on the implementation and financing of the measures for the construction of the broadband infrastructure
    • Documentation of the actual coverage (building-specific presentation based on the address list; cf. no. 4.3 BayGibitR, as well as cartographic presentation)
    • Documentation of the market investigation (in particular published announcement text with address list; cf. nos. 4.3 and 4.4 BayGibitR, as well as cartographic representation)
    • Result of the market investigation (cf. No. 4.9 BayGibitR)
    • Documentation (of the participation competition and) of the selection procedure (in particular published announcement text including address list and cartographic representation of the development area)
    • Result of the selection procedure to determine the network operator including bid evaluation and selection decision in accordance with the defined selection criteria as well as documentation of the final development area based on the address list and a cartographic representation
    • the selected offer(s) including confirmation of the selected network operator(s) in accordance with No. 7.7 BayGibitR
    • Resolution of the competent body on the intended selection decision and the financing of the measure
    • If applicable, proof of power of representation (if the applicant is acting on behalf of several municipalities)
    • If applicable, copy of the application for an Infrakredit Breitband from the LfA-Förderbank Bayern (LfA)* as well as consent to the exchange of data between the granting authority and the LfA
    • Declaration of the applicant on the cooperation agreement (cf. No. 9.4 BayGibitR)
    • If applicable, agreement on inter-municipal cooperation
    • Confirmation by the selected network operator(s) that there are no unfulfilled recovery orders based on a previous decision by the European Commission to determine the inadmissibility of aid and its incompatibility with the internal market (cf. No. 15 letter a BayGibitR)
    • Confirmation by the selected network operator(s) that it is not a company in difficulty within the meaning of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ EU 2014/C 249/01) (cf. No. 15 letter b BayGibitR).
    • Data sheet Recording of evaluation data
    • If applicable, presentation of the average financial strength of the last five years

Forms

Links to more information

Status: 07.03.2022

Responsible for editing: Bayerisches Staatsministerium der Finanzen und für Heimat

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Regierung von Oberbayern
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