Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of Internet connectivity in local communities
Date: 2016-09-14
Institutions: Directorate-General for Communications Networks, Content and Technology, European Commission
Subjects: EU aid, Internet, financial aid, project of common interest, trans-European network, transmission network

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   EUROPEAN COMMISSION  Brussels, 14.9.2016  COM(2016) 589 final 2016/0287 (COD)   Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL  amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the promotion of Internet connectivity in local communities (Text with EEA relevance)  
 
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

The  new  Telecommunications  package  adopted  today  by  the  Commission  includes  a 
Communication  setting  out  a  European  vision  of  Internet  connectivity  for  citizens  and 
business  in  the  Digital  Single  Market,1  as  well  as  a  legislative  proposal  for  a  European 
Electronic  Communications  Code2  reviewing  the  regulatory  framework  for  electronic 
communications. The Commission proposals set out the reforms needed to ensure availability 
and take-up of very high capacity networks that will enable the widespread use of products, 
services and applications in the Digital Single Market.  

As  the  internet  and  digital  connectivity  transform  private  lives  and  professional  practices 
inside and beyond the Union, there is a need to ensure that the general public is encouraged to 
seize the opportunities that this transformation offers. 

For this reason, one of the Commission's strategic aims for the Union to be achieved by 2025 
is for sites at which public services are provided, such as public administrations, libraries and 
hospitals to be equipped with Gigabit internet connections. Connecting these and other centres 
of  community  life,  including  outdoor  spaces  accessible  to  the  general  public,  at  speeds 
significantly  above  functional  internet  access,  will  enable  citizens  from  all  walks  of  life  to 
experience the advantages of next generation connectivity while on the move, in places where 
being connected matters.  

Amongst measures to support this objective, the new package will promote the deployment of 
local wireless access points through simplified planning procedures and lightened regulatory 
obligations, inter alia where such access is provided on a non-commercial basis or is ancillary 
to the provision of other public services.  

The  measure  proposed  here  complements  this  effort  through  amendments  to  the  legal 
framework  for  telecommunications  in  the  Connecting  Europe  Facility,  contained  in 
Regulation  (EU)  No  1316/20133  (hereafter 
'CEF  Regulation')  and  Regulation  (EU) 
No 283/20144 (hereafter 'Guidelines Regulation'). These amendments encourage entities with 
a public mission such as public authorities and providers of public services to offer free local 
wireless connectivity in the centres of local public life (e.g. public administrations, libraries, 
health  centres  and  outdoor  public  spaces).  To  this  end,  it  provides  financial  incentives  in 
favour of those entities who want to provide free, high capacity local wireless connectivity in 
public  spaces  within  their  jurisdiction  or  at  their  sites  of  service.    Funding  to  local  public 
authorities  for  access  points  in  the  centres  of  local  public  life,  including  outdoor  spaces 
accessible to the general public, will be prioritised in the first phase of the intervention. 

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Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions – Connectivity for a Competitive 
Digital Single Market - Towards a European Gigabit society (COM(2016)587). 
Proposal  for  a  Directive  of  the  European  Parliament  and  of  the  Council  establishing  the  European 
Electronic Communications Code (Recast) (COM(2016)590). 
Regulations (EU) No 1316/2013 of the European Parliament and of the Council of 11 December 2013 
establishing  the  Connecting  Europe  Facility,  amending  Regulation  (EU)  No  913/2010  and  repealing 
Regulations (EC) No 680/2007 and (EC) No 67/2010, OJ L 348, 20.12.2013, p. 129, as last amended by 
Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015, OJ L 169, 
1.7.2015, p. 1. 
Regulation  EU)  No  283/2014  of  the  European  Parliament  and  of  the  Council  of  11  March  2014  on 
guidelines for trans-European networks in the area of telecommunications infrastructure and repealing 
Decision No 1336/97/EC, OJ L 86, 21.3.2014, p. 14. 

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By  stimulating  the  integration  with  existing  public  services,  the  intervention  will  promote 
citizens' interest in high capacity internet services and thereby make a significant contribution 
to both the take-up of broadband services and to public infrastructure development. Free local 
wireless connectivity made accessible in busy places where many people gather and await the 
next  step  on  their  daily  agenda  can  provide  significant  added  value  by  allowing  idle  and 
transit  time  to  be  converted  into  productive,  relaxing  or  more  informed  experiences. 
Moreover, such local wireless access points can provide increased granularity of coverage in 
hard-to-reach places or where the sheer number of users would otherwise greatly detract from 
the experience of wireless connectivity. By allowing users to remain connected while out and 
about,  they  also  reinforce  mobility,  flexibility  and  interest  in  using  the  services  offered  by 
entities with a public mission, and can give improved control over personal time budgets. At 
the  same  time,  the  limited  reach  of  any  single access  point  guarantees  that  this  public  offer 
would not challenge commercial offers, but could play an important role in fostering the use 
of broadband and  promote digital literacy. This will in  turn promote the interest  of users to 
take  up  commercial  residential  or  mobile  broadband  offers.  The  proposed  intervention 
complements the new legislative concept of universal service in the proposal for a European 
Electronic  Communications  Code,  whereby  every  EU  citizen  shall  have  the  right  to  be 
connected:  the  right  to  a  functional  internet  connection,  at  least  at  a  fixed  location,  that  is 
affordable and allows full engagement with the digital economy and society. 

The measure proposed provides for a simple financing mechanism for the installation of local 
wireless  access  points.  The  intervention  is  designed  to  achieve  maximum  short-term  impact 
by  fostering  the  interest  of  citizens  for  internet  access  services  and  to  facilitate  the  use  of 
public digital services, including access to digital service infrastructures. The expectation that 
the  interest  generated  will  provide  a  basis  for  the  continued  operation  and  possible 
replacement of the access points without further financial assistance under the regulations is 
consistent  with  the  objective  of  phasing  out  such  assistance  wherever  possible  and 
encouraging reliance on alternative financing mechanisms.  

To  ensure  the  targeted  nature  of  the  intervention  and  to  realise  maximum  public  benefit, 
funding will be limited to situations where no freely accessible public or private access points 
delivering very high-speed broadband exist. As the amount of Union financial assistance to be 
awarded  for  individual  actions  will  fall  below  the  threshold  for  low  value  grants  of 
EUR 60,000  provided  for  in  the  Financial  Regulation5,  no  appreciable  effect  of  the 
intervention  on  competition  is  expected.6  Moreover,  funding  shall  be  awarded  in  a 
geographically  balanced  manner  that  contributes  to  the  economic,  social  and  territorial 
cohesion  in  the  Union  by  taking  particular  account  of  the  needs  of  local  communities.7 
Through the joint application of these criteria, the intervention proposed is consistent with the 

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As  defined  in  Article  185  of  Regulation  (EU)  No  1268/2012  of  29  October  2012  on  the  rules  of 
application of Regulation (EU, Euratom) No 966/2012 of the European Parliament and of the  Council 
on  the  financial  rules  applicable  to  the  general  budget  of  the  Union,  OJ  L  362,  31.12.2012,  p.  1,  as 
amended  by  Commission  Delegated  Regulation  (EU)  2015/2462  of  30  October  2015,  OJ  L  342, 
29.12.2015, p. 7. 
Any  additional  financial  assistance  by  Member  States  should  normally  qualify  as  de  minimis  aid,  as 
defined  in  Article  3  of  Commission  Regulation  (EU)  No  1407/2013  of  18  December  2013  on  the 
application  of  Articles  107  and  108  of  the  Treaty  on  the  Functioning  of  the  European  Union  to  de 
minimis aid, OJ L 352, 24.12.2013, p. 1. In the event that such additional Member State financing does 
not meet the requirements to be considered de minimis aid, Articles 107 and 108 TFEU shall apply to 
the additional financing. 
The objective of a geographically balanced distribution of Union financial assistance has to be achieved 
within  the  limits  of  the  actually  received  proposals,  and  in  full  compliance  with  the  principles  for 
specific financial forms of assistance as defined in the Financial Regulation. 

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framework  of  open  and  competitive  markets  underpinning  the  operation  of  trans-European 
networks. 

In  addition  to  stimulating  demand  in  high-speed  broadband  connectivity  and  encouraging 
widespread  take-up  at  community  level,  the  intervention  will  also  have  several  positive 
knock-on  effects  ranging  from  enhanced  access  to  e-government  and  participation  in 
democratic  life,  including  for  demographic  groups  otherwise  facing  difficulty  in  accessing 
connectivity  (such  as  refugees  and  low  income  groups),  to  additional  infrastructure  for 
emergency and crisis communications and public service announcements. To ensure that local 
communities with limited resources can also experience these benefits of participation in the 
Digital Single Market, support under this measure should be available for up to 100 % of the 
eligible costs, without prejudice to the principle of co-financing. Potential beneficiaries could 
involve  members  of  the  local  community  in  implementing  actions  funded  by  the  proposed 
measure  in  order  to  determine  the  centres  of  public  life  where  the  installation  of  freely 
accessible wireless access points would provide the greatest added value for the community. 

Given  its  flexible  and  focussed  nature  relative to  the  support  for  broadband  networks  under 
the telecommunications sectoral envelope for the implementation of the CEF, the intervention 
should be recognised as a separate project of common interest with associated actions under 
the CEF Regulation and a dedicated budget, the details of which should be provided for under 
the Guidelines Regulation. Given the limited volume of financial assistance awarded to each, 
but the significant total number of beneficiaries, it is important to ensure that administrative 
procedures  are  streamlined  to  enable  lean  and  swift  decision-making.  To  this  end,  Member 
States should be enabled under the CEF Regulation to endorse categories of proposals under 
this  intervention,  rather  than  having  to  give  their  agreement  on  lists  of  individual 
beneficiaries. By implementing this amendment in a horizontal manner to the benefit of other 
projects  of  common  interest,  the  proposal  also  responds  to  Member  States'  calls  for  more 
efficient means of implementing actions in the field of digital services infrastructures.  

In order to ensure that the measure can respond to a wide variety of situations and can deliver 
concrete results as quickly as possible, it is essential to not unnecessarily limit the available 
forms  of  financial  assistance.  An  important  degree  of  flexibility  in  this  context  can  be 
preserved by enabling implementation to benefit from the greatest possible range of forms of 
assistance appropriate for the intervention. To this end, and in view of ongoing negotiations 
on a revision of the Financial Regulation, the text of the CEF Regulation should be amended 
to  clarify  that  all  actions  contributing  to  projects  of  common  interest,  including  the  present 
intervention,  are  generally  eligible  for  support  through  the  forms  of  financial  assistance 
currently and prospectively available under the Financial Regulation.  

On  the  other  hand,  it  is  proposed,  for  the  same  reasons,  to  specify  the  forms  of  financial 
assistance  available  for  the  intervention  in  a  mutually  consistent  manner  in  the  CEF 
Regulation  and  the  Guidelines  Regulation.  Grants  are  likely  to  be  the  predominant  form  of 
financial  assistance  appropriate  to  achieving  the  objective  of  promoting  free  local  wireless 
connectivity  in  local  communities,  but  other  forms  of  financial  assistance  should  not  be 
excluded  from  the  outset,  except  for  financial  instruments.  The  exclusion  of  financial 
instruments is due to their relatively high administrative burden and the associated time lags 
in  implementation,  which  do  not  provide  for sufficient  alignment  with the  characteristics  of 
the actions envisaged. 

To  ensure  speed  and  efficiency,  the  implementation  of  this  intervention  will  be  carried  out 
through  streamlined  administrative  procedures  using  standardised  documentation  (such  as 
vouchers) and on-line tools for handling applications as well as for subsequent monitoring and 
auditing of the local wireless access points installed. 

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It  is  expected  that  the  measure  proposed,  promoted  through  the  EU  network  of  Broadband 
Competence  Offices,8  will  raise  awareness  among  local  authorities  and  citizens  of  the  new 
Commission priorities for the Gigabit society as well as provide a high degree of visibility and 
trust in the capacity of the EU to deliver connectivity and access to digital services across the 
European  continent.  Recognisability  of  the  actions  funded  by  the  proposed  measure  will  be 
guaranteed  by  a  specific  visual  identity  developed  by  the  Commission  that  will  be  made 
available to beneficiaries for implementation, thus ensuring brand recognition. 

• 

Consistency with existing provisions on the policy area 

Currently,  the  legal  framework  for  telecommunications  in  the  Connecting  Europe  Facility 
provides  for  financial  support  in  the  area  of  telecommunications  to  digital  service 
infrastructures (in the form of grants and/or procurement) and to broadband networks (in the 
form of financial instruments).  

Regarding  intervention  in  support  of  broadband,  given  the  key  importance  of  broadband 
networks for growth and jobs, and in view of the challenges – both financial and technical – 
connected to public investment in the sector, the Guidelines Regulation provides for a limited 
intervention.  CEF  finances  a  small  contribution  to  the  setting  up  of  financial  instruments  at 
Union level, in particular in cooperation with the European Investment Bank to facilitate the 
efficient  use  of  other  public  as  well  as  private  resources.  It  aims  at  the  deployment  of 
innovative broadband projects, based on state-of-the-art technology and with the potential for 
replicability, thus achieving its objectives both directly and through demonstration effect.  

The  proposed  measure  complements  the  end  user-centred  elements  of  the  proposal  for  a 
European Electronic Communications Code. The support for the installation of local wireless 
access  points  in  centres  of  local  public  life  is  complementary  to  other  actions  in  the  CEF 
telecommunications  sector  as  well  as  to  other  sources  of  financial  support,  such  as  the 
European Structural and Investment Fund, supporting the rollout of broadband networks. As 
such actions are currently neither covered by the CEF nor by the Guidelines Regulation, it is 
proposed to amend those regulations accordingly. 

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Article  172  TFEU,  which  covers  EU  intervention  supporting  the 
establishment  and  development  of  trans-European  networks  in  the  areas  of  transport, 
telecommunications  and  energy  infrastructures.  In  line  with  Article  170(1)  TFEU,  the 
initiative seeks  to ensure that local communities can  derive the full benefit  from the Digital 
Single Market by setting-up an area without internal frontiers through the deployment of such 
networks. 

• 

Subsidiarity and proportionality 

The proposal complies with the proportionality principle, and stays within the scope of action 
in the field of the trans-European telecommunications networks, as defined in Article 170 of 
the Treaty on the Functioning of the European Union. 

By  taking  particular  account  of  the  needs  of  local  communities  in  the  wider  context  of  the 
Digital  Single  Market  Strategy,  the  proposal  contributes  to  the  achievement  of  an  internal 
market  for  electronic  communications  and  enables  the  participation  of  communities  therein. 
As  the  creation  of  an  area  covering  the  entire  EU  with  high  quality  wireless  connectivity 

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cannot  be  sufficiently  attained  by  Member  State  action,  the  proposal  is  consistent  with  the 
principle  of  subsidiarity  of  Article 5  TEU.  It  is  expected  that  the  intervention  be  promoted 
inter alia by the EU network of Broadband Competence Offices, which should help to ensure 
that  the  needs  of  local  communities  can  be  addressed  efficiently  and  that  administrative 
burdens are kept to a minimum. 

Current  initiatives  related  to  free  local  wireless  connectivity  are  fragmented,  leading  to 
inefficiencies.  There  is  notably  no  overarching  strategy  to  promote  access  to  free  wireless 
connectivity  throughout  the  Union  to  further  the  participation  of  local  communities  in  the 
Digital  Single  Market.  As  individual  deployments  of  local  wireless  access  points  are 
territorially limited even within local communities, coordination of such effort is even more 
important to ensure that deployment promotes the common interest in EU-wide connectivity 
in  a  coherent  manner.  Coherence  in  the  pan-European  deployment  of  free  wireless 
connectivity solutions will allow both to optimise the costs of the intervention (in particular 
by lowering the costs of administering small grants because of the effects of scale, but also by 
bringing  down  equipment  prices)  and  ensure  greater  equality  of  access,  thereby  adding  to 
economic, social and territorial cohesion inside the Union. The measure proposed is designed 
to add further European value by ensuring that the infrastructures deployed also enable access 
via digital service infrastructures to trans-European interoperable services of common interest 
like  Europeana,  safer  Internet  service  infrastructures  and  interoperable cross-border  e-health 
services. 

The scope of the proposed intervention is limited to the provision of connectivity in centres of 
public  life  and  outdoor  spaces  accessible  to  the  public  through  access  points  that  are 
inherently limited in coverage, and individual projects will be of small size. The intervention 
thus remains proportionate to the objective of enabling local communities to participate in the 
wireless  dimension of  the Digital  Single Market without prejudice to  commercial offers. At 
the  same  time,  the  measure  is  expected  to  have  positive  spill-over  effects  on  general 
participation  in  connectivity  offers  through  commercially  provided  access  services.  The 
effectiveness  of  the  intervention  is  expected  to  be  further  strengthened  by  the  ease  of 
replicability and possible demonstrator effects of successful use cases. 

The on-line administration of the measure proposed coupled inter alia with support from the 
network  of  domestic  Broadband  Competence  Offices  will  ensure  that  the  administrative 
burden  incurred  for  the  implementation  of  and  participation  in  the  initiative  is  kept  to  a 
minimum. 

3. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

As  this  initiative  is  complementary  to  the  new  Telecommunications  package,  including  the 
Communication  setting  out  a  European  vision  of  Internet  connectivity  for  citizens  and 
business  in  the  Digital  Single  Market  and  the  legislative  proposal  reviewing  the  regulatory 
framework for electronic communications, it draws heavily on the stakeholder input and the 
extensive  analysis  carried  out  in  the  evaluation  and  impact  assessment  supporting  these 
proposals  and  the  staff  working  documents  accompanying  the  communication.  The  most 
relevant  points  for  the  proposed  measure  are  summarised  below.  Overall,  the  analysis 
demonstrates  that  while  legislative  and  regulatory  actions  can  remove  barriers,  enhance 
competitive  incentives,  provide  greater  predictability  for  investors  and  lower  costs  for 
network deployment, there is an important role for public funding to achieve Europe's long- 
term connectivity objectives. 

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The  recent  report9  summarising  the  outcome  of  the  public  consultation  carried  out  by  the 
Commission  for  the  review  of  the  regulatory  framework  for  electronic  communications 
showed  that  many  public  authorities  and  private  respondents  supported  the  deployment  of  
Wi-Fi networks in public premises, while seeking an appropriate regulatory environment for 
issues like access provider liability and exposure to electromagnetic fields (EMF). Operators 
stressed  that  any  public  support  should  be  technologically  neutral,  while  emphasizing  that 
roll-out  could  also  be  facilitated  via  various  forms  of  public-private  partnerships.  These 
findings are in line with the ex-post evaluation of the current regime, which accompanies the 
proposal for the review of the regulatory framework. 

The impact assessment carried out for the review of the regulatory framework builds on those 
considerations  expressed  by  stakeholders  and  proposes  to  introduce  provisions  on  the 
deployment of small cells. These provisions aim to reduce the costs of deploying very dense 
networks and to enhance access to local wireless connectivity in order to meet the exponential 
demand for ubiquitous connectivity. The proposed measure, which complements the preferred 
option for the development of the regulatory framework in the area of spectrum management, 
will help to foster the provision of free local wireless connectivity and thereby contribute to 
making  the  European  vision  of  Internet  connectivity  for citizens  and  business  in  the  Digital 
Single Market a reality. 

4. 

BUDGETARY IMPLICATIONS 

Appropriations  required  by  this  proposal  are  to  be  fully  financed  within  the  Multiannual 
Financial  Framework  2014-2020.  EUR  70  million  are  to  be  reallocated  within  the 
programmed amounts for the CEF telecommunications sector 2017-2019 and EUR 50 million 
will  be  transferred  to  the  financial  envelope  for  the  telecommunications  sector  through  an 
amendment of Article 5(1) of the CEF Regulation. For reasons of consistency, this increase is 
also reflected in the proposal for an amendment of the legal framework for the European Fund 
for Strategic Investments10, as laid down in Regulation (EU) No 2015/101711. 

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https://ec.europa.eu/digital-single-market/en/news/full-synopsis-report-public-consultation-evaluation-and-review-
regulatory-framework-electronic 
Proposal for a Regulation of the European Parliament and of the Council amending Regulations (EU) 
No 1316/2013 and (EU) 2015/1017 as regards the extension of the duration of the  European Fund for 
Strategic  Investments  as  well  as  the  introduction  of  technical  enhancements  for  that  Fund  and  the 
European Investment Advisory Hub (COM(2016)597). 
Regulation  (EU)  2015/1017  of  the  European  Parliament  and  of  the  Council  of  25  June  2015  on  the 
European  Fund  for  Strategic  Investments,  the  European  Investment  Advisory  Hub  and  the  European 
Investment Project Portal and amending Regulations (EU) No 1291/2013 and (EU) No 1316/2013  — 
the European Fund for Strategic Investments, OJ 169, 1.7.2015, p. 1. 

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2016/0287 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulations (EU) No 1316/2013 and (EU) No 283/2014 as regards the 
promotion of Internet connectivity in local communities 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article172 thereof,  

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee12,  
Having regard to the opinion of the Committee of the Regions13,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

(3) 

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13 
14 

The  Commission  Communication  setting  out  a  European  vision  of  Internet 
connectivity  for  citizens  and  business  in  the  Digital  Single  Market14  describes  a 
number  of  possible  measures  capable  of  enhancing  connectivity  in  the  European 
Union.  

Amongst  measures  to  support  the  vision  of  European  connectivity,  it  promotes  the 
deployment of local wireless access points through simplified planning procedures and 
reduced  regulatory  obstacles.  Such  access  points,  including  those  ancillary  to  the 
provision  of  other  public  services  or  non-commercial  in  character,  can  make  an 
important  contribution  to  the  improvement  of  current  and  the  deployment  of  future 
generations  of  wireless  communications  networks  by  facilitating  more  granular 
coverage in line with evolving needs. 

Following the  Communication setting out  a  European vision of Internet  connectivity 
for  the  Digital  Single  Market  and  in  order  to  promote  digital  inclusion,  the  Union 
should support the provision of free local wireless connectivity in the centres of local 
public life, including outdoor spaces accessible to the general public, through targeted 

OJ C,, p... 
OJ C,, p.. 
Communication  from  the  Commission  to  the  European  Parliament,  the  Council,  the  European 
Economic and Social Committee and the Committee of the Regions – Connectivity for a Competitive 
Digital Single Market - Towards a European Gigabit society (COM(2016)587). 

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(4) 

(5) 

(6) 

(7) 

(8) 

(9) 

support. Such support is so far not covered by Regulations (EU) No 1316/201315 and 
(EU) No 283/201416. 

Support  of  this  kind  should  encourage  entities  with  a  public  mission  such  as  public 
authorities and providers of public services to offer free local wireless connectivity as 
an ancillary service to their public mission so as to ensure that local communities can 
experience  the  benefits  of  very  high-speed  broadband  in  the  centres  of  public  life. 
Such entities could include municipalities and other local public authorities, libraries 
and hospitals. 

Local  wireless  connectivity  should  only  qualify  as  free  where  it  is  provided  without 
corresponding  remuneration,  whether  by  direct  payment  or  other 
types  of 
consideration, including, but not limited to, advertising and the provision of personal 
data. 

Considering  its  specific  purpose  and  targeted  nature  toward  local  needs,  the 
intervention  should  be  identified  as  a  distinct  project  of  common  interest  in  the 
telecommunications sector within the meaning of Regulations (EU) No 1316/2013 and 
(EU) No 283/2014. 

To provide this intervention with appropriate financing, the financial envelope for the 
implementation  of the CEF  in  the telecommunications  sector  should be increased by 
an amount of EUR 50 000 000. 

Given the non-commercial nature of this intervention and the small scale of individual 
projects  foreseen,  the  administrative  burden  should  be  limited  to  a  minimum. 
Therefore, the  intervention  should  be  implemented  by  the most  appropriate  forms  of 
financial assistance, notably grants, available under the Financial Regulation, now or 
in future. The intervention should not rely on financial instruments. 

Due to the limited reach of any single local wireless access point and the small value 
of  individual  projects  covered,  access  points  benefitting  from  financial  assistance 
under  this  Regulation  are  not  expected  to  challenge  commercial  offers.  In  order  to 
further  ensure  that  such  financial  assistance  does  not  unduly  distort  competition, 
crowd  out  private  investments  or  create  disincentives  for  private  operators  to  invest, 
the  intervention  should  be  limited  to  projects  that  do  not  duplicate  already  existing 
private  or  public  offers  of  similar  characteristics  in  the  same  area.  This  should  not 
exclude additional support to deployments under this initiative from public or private 
sources of funding. 

(10)  To  ensure  that  connectivity  in  accordance  with  this  Regulation  is  provided  quickly, 
financial assistance should be implemented using to the fullest extent possible on-line 
tools that allow for the swift submission and handling of applications and support the 
implementation, monitoring and auditing of the local wireless access points installed. 

(11)  Given  Internet  connectivity  needs  within  the  Union  and  the  urgency  of  promoting 
access  networks  that  can  deliver,  throughout  the  EU,  an  Internet  experience  of  high 

15 

16 

Regulation (EU) No 1316/20136 of the European Parliament and of the Council of 11 December 2013 
establishing  the  Connecting  Europe  Facility,  amending  Regulation  (EU)  No  913/2010  and  repealing 
Regulations (EC) No 680/2007 and (EC) No 67/2010, OJ L 348, 20.12.2013, p. 129, as last amended by 
Regulation (EU) 2015/1017 of the European Parliament and of the Council of 25 June 2015, OJ L 169, 
1.7.2015, p. 1. 
Regulation  (EU)  No  283/2014  of  the  European  Parliament  and  of  the  Council  of  11  March  2014  on 
guidelines for trans-European networks in the area of telecommunications infrastructure and repealing 
Decision No 1336/97/EC, OJ L 86, 21.3.2014, p. 14. 

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quality based on very high-speed broadband services, financial assistance should seek 
to attain a geographically balanced distribution. 

(12)  Regulations (EU) No 1316/2013 and (EU) No 283/2014 should therefore be amended 

accordingly. 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Amendments to Regulation (EU) No 1316/2013 

Regulation (EU) No 1316/2013 is amended as follows: 

1. In the first subparagraph of Article 5(1), point (b) is replaced by the following: 

'(b) telecommunications sector: EUR 1 091 602 000;' 

2. Article 7 is amended as follows:  

a) 

paragraph 1 is replaced by the following: 

'1.  Only  actions  contributing  to  projects  of  common  interest  in  accordance  with 
Regulations (EU)  No 1315/2013,  (EU) No 347/2013  and a Regulation on guidelines for 
trans-European  networks  in  the  area  of  telecommunications  infrastructure,  as  well  as 
programme  support  actions,  shall  be  eligible  for  support  through  Union  financial 
assistance, in particular in the form of grants, procurement and financial instruments.' 

b) 

paragraph 4 is replaced by the following:  

'4.  In  the  telecommunications  sector,  all  actions  implementing  the  projects  of  common 
interest and programme support actions identified in a Regulation on guidelines for trans-
European  networks  in  the  area  of  telecommunications  infrastructure  and  meeting 
eligibility criteria and/or conditions laid down in accordance with that Regulation shall be 
eligible to receive Union financial assistance under this Regulation, as follows: 

(a)  generic  services,  core  service  platforms  and  programme  support  actions  shall  be 
financed through grants and/or procurement; 

(b)  actions  in  the  field  of  broadband  networks  shall  be  financed  through  financial 
instruments; 

(c) actions in the field of providing free local wireless connectivity in local communities 
shall  be  financed  through  grants  or  forms  of  financial  assistance  other  than  financial 
instruments.' 

3. In Article 9, the following paragraph is added:  

'1a. Where justified by the need to avoid undue administrative burden, in particular in case of 
low  value  grants  within  the  meaning  of  Article  185  of  Regulation  (EU)  No  1286/2012, 
Member  States'  agreement  may  be  given  to  a  certain  category  of  proposals  under  the  work 
programmes pursuant to Article 17, without indicating individual applicants.' 

4. In Article 10(4), the following third subparagraph is added:  

'Actions in the field of providing free local wireless connectivity in local communities shall be 
funded by Union financial assistance up to 100 % of the eligible costs, without prejudice to 
the co-financing principle.' 

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Article 2 

Amendments to Regulation (EU) No 283/2014 

Regulation (EU) No 283/2014 is amended as follows: 

1. In Article 2(2), the following point (h) is added: 

'(h) 'local wireless access point' means a low power equipment of small size operating within 
a  small  range,  using  on  a  non-exclusive  basis  radio  spectrum  for  which  the  conditions  of 
availability and efficient use for this purpose are harmonised at Union level, and which allows 
wireless access by users to an electronic communications network.'  

2 In Article 4(1), the following point (c) is added: 

'(c) support the provision of free local wireless connectivity in local communities.' 

3. Article 5 is hereby amended as follows:  

a)  paragraph 7 is replaced by the following: 

'7.  The  total  amount  of  the  budget  allocated  to  financial  instruments  for  broadband 
networks  shall  not  exceed  the  minimum  necessary  to  establish  cost-efficient 
interventions  which  shall  be  determined  on  the  basis  of  ex-ante  assessments  as 
referred to in Article 14(1) of Regulation (EU) No 1316/2013.  

That amount shall be up to 15 % of the financial envelope for the telecommunications 
sector referred to in point (b) of Article 5(1) of Regulation (EU) No 1316/2013.' 

b)  the following paragraph is added: 

'5a.  Action  contributing  to  the  projects  of  common  interest  in  the  field  of  providing 
free local wireless connectivity in local communities shall be supported by: 

(a) grants; and/or  

(b) forms of financial assistance other than financial instruments.' 

4. In Article 6, the following paragraph 8a is added: 

'8a.  Actions  contributing  to  projects  of  common  interest  in  the  field  of  providing  free  local 
wireless  connectivity  in  local  communities  shall  meet  conditions  set  out  in  Section  4  in  the 
Annex.' 

5. In Article 8(9), the following point (d) is added: 

'(d)  the  number  of  connections  to  local  wireless  access  points  established  under  actions 
implementing Section 4 of the Annex.' 

6. In the Annex, the following section shall be inserted:  

'SECTION 4. WIRELESS CONNECTIVITY IN LOCAL COMMUNITIES 

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11 

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Actions  aiming  at  the  provision  of  free  local  wireless  connectivity  in  the  centres  of  local 
public life, including outdoor spaces accessible to the general public that play a major role in 
the public life of local communities, shall be eligible for financial assistance.  

Financial  assistance  shall  be  available  to  entities  with  a  public  mission  such  as  local 
authorities  and  providers  of  public  services  undertaking  to  provide  free  local  wireless 
connectivity through the installation of local wireless access points. 

Projects  for  the  provision  of  wireless  connectivity  through  freely  accessible  local  wireless 
access points may receive funding if they: 

1) 

2) 

are  implemented  by  an  entity  with  a  public  mission  capable  of  planning  and 
supervising the installation of indoor or outdoor local wireless access points in public 
spaces; 

build  on  very  high-speed  broadband  connectivity  enabling  delivery  of  high  quality 
Internet experience to users that  

a. 

b. 

is free, easy to access, and uses state-of-the-art equipment, and  

supports access to innovative digital services, such as those offered via digital 
service infrastructures; 

3) 

use  the  common  visual  identity  to  be  provided  by  the  Commission  and  link  to  the 
associated online tools. 

Projects  duplicating  already  existing  private  or  public  offers  of  similar  characteristics, 
including quality, in the same area shall not be covered. 

The  available  budget  shall  be  allocated  in  a  geographically  balanced  manner  to  projects 
meeting  the  above  conditions  in  view  of  the  proposals received  and,  in  principle,  on  a  'first 
come, first served' basis.' 

Article 3 

Entry into force 

This Regulation shall enter into force on the twentieth day following that of its publication in 
the Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

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ANNEX 

Legislative financial statement 

Proposal for a regulation amending Regulations (EU) No 1316/2013 and (EU)  
No 283/2014 as regards the promotion of Internet connectivity in local communities 

1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1.  Title of the proposal/initiative  

1.2.  Policy area(s) concerned in the ABM/ABB structure 

1.3.  Nature of the proposal/initiative  

1.4.  Objective(s)  

1.5.  Grounds for the proposal/initiative  

1.6.  Duration and financial impact  

1.7.  Management mode(s) planned  

2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

2.2.  Management and control system  

2.3.  Measures to prevent fraud and irregularities  

3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1.  Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

3.2.  Estimated impact on expenditure  

3.2.1. Summary of estimated impact on expenditure  

3.2.2. Estimated impact on operational appropriations  

3.2.3. Estimated impact on appropriations of an administrative nature 

3.2.4. Compatibility with the current multiannual financial framework 

3.2.5. Third-party contributions  

3.3.  Estimated impact on revenue

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LEGISLATIVE FINANCIAL STATEMENT 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

Title of the proposal/initiative  

Proposal for a regulation amending Regulations (EU) No 1316/2013 and (EU)  
No 283/2014 as regards the promotion of Internet connectivity in local communities 
Policy area(s) concerned in the ABM/ABB structure17  

1. 

1.1. 

1.2. 

09.Communications networks, content and technology 

1.3. 

Nature of the proposal/initiative  

x The proposal/initiative relates to a new action  

  The  proposal/initiative 
project/preparatory action18  

relates 

to  a  new  action 

following  a  pilot 

 The proposal/initiative relates to the extension of an existing action  

 The proposal/initiative relates to an action redirected towards a new action  

1.4. 

Objective(s) 

1.4.1.  The  Commission's  multiannual 

strategic  objective(s) 

targeted  by 

the 

proposal/initiative  

The  new  Telecommunications  package,  to  be  adopted  by  the  Commission  on  13 September 
2016, will include a Communication setting out a European vision of Internet connectivity for 
European  citizens  and  businesses,  as  well  as  a  legislative  proposal  reviewing  the  regulatory 
framework for telecommunications. The Commission proposals set out the reforms needed to 
further incentivise the deployment of the networks of the future and ensure that no one and no 
region is left behind.  

This  proposal  will  encourage  and  support  entities  with  a  public  mission,  such  as  local 
public authorities, to offer free Wi-Fi connectivity in the centres of community life (e.g. 
in and around public buildings, health centres, parks or town squares). 

1.4.2. 

Specific objective(s) and ABM/ABB activity(ies) concerned  

Specific objective  

The  new  package  will  provide  financial  incentives  to  projects  proposed  by  entities  with  a 
public mission, such as public authorities and providers of public services, to install wireless 
access points and offer free connectivity in the centres of community life located within their 
jurisdiction or at their site of service (e.g. public administrations, libraries, health centres and 
outdoor public spaces).  

In  addition  to  stimulating  demand  in  high-speed  broadband  connectivity  and  encouraging 
widespread take-up at community level, the initiative will also have several positive knock-on 
effects ranging from enhanced access to innovative digital services and early benefits of the 
gigabit society envisioned by the new strategy adopted by the European Commission. 

ABM/ABB activity(ies) concerned 

17 
18 

ABM: activity-based management; ABB: activity-based budgeting. 
As referred to in Article 54(2)(a) or (b) of the Financial Regulation. 

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Connecting Europe Facility – Telecommunication networks 

1.4.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The initiative is expected to bring the following impact: 

The scheme  has the potential to  deliver connectivity to thousands of public spaces, 
which  could  result  in  40  to  50  million  Wi-Fi  connections  per  day.  Such  local 
connectivity will support public authorities and local businesses in offering a wider 
range of local digital services, applications and products to their own populations as 
well  as  visitors,  and  thus  to  better  integrate  themselves  into  the  Digital  Single 
Market. 

1.4.4. 

Indicators of results and impact  

Specify the indicators for monitoring implementation of the proposal/initiative. 

The main monitoring indicators are: a) the number of access points installed; and b) 
the number of connections they generate. 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term  

The  initiative  is  within  the  scope  of  actions  in  the  field  of  the  trans-European 
telecommunications networks, as defined in Article 170 of the Treaty on the Functioning of 
the European Union. 

In  parallel,  a  legislative  proposal  for  a  new  electronic  Communication  Code  which  is  a 
modernisation  of  the  current  regulatory  framework  for  electronic  communication  services, 
will  in  particular  remove  legal  obstacles  for  entities  to  deploy  and  share  Wi-Fi  access  in 
Europe,  when  some  local  communities  or  private  entities  wanted  to  deploy  and  offer  Wi-Fi 
access to their constituents. 

Among the Union's strategic aims for 2025 (Communication on connectivity for a European 
Gigabit  Society)  is  for  all  main  socio-economic  drivers  such  as  schools,  transport  hubs  and 
main providers of public services19 as well as digitally intensive enterprises, to be equipped 
with  Gigabit  connections.  The  initiative  promoting  free  WiFi  access  in  the  main  centres  of 
public life, including outdoor spaces accessible to the general public, is therefore providing a 
concrete example of scheme promoting such connectivity through the most up-to-date digital 
infrastructures. 

1.5.2.  Added value of EU involvement 

Based on vouchers, the initiative will be delivered in a highly efficient manner, and attract to 
the  CEF  new  categories  of  project  promoters  –  typically  local  authorities.  The  emulation 
among  local  authorities  and  among  other  providers  of  public  services  will  be  promoted 
through  the  EU  network  of  Broadband  Competence  Offices  to  be  established  in  the  new 
telecom package. Overall, the initiative will accelerate the awareness of the new Commission 
priorities  for  the  Gigabit  society  at  all  levels  of  administration,  as  well  as  provide  a  high 
degree  of  brand  recognition,  visibility  and  trust  in  the  capacity  of  the  EU  to  deliver  digital 
services  to  citizens  across  the  European  continent.  The  access  points  will  be  delivered  in  a 

19 

Covering:  e.g.  primary  and  secondary  schools,  train  stations,  ports  and  airports,  local  authority 
buildings, universities, research centres, doctors' surgeries, hospitals and stadiums. 

EN 

15 

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uniform manner and will provide best practice to entities interested in deploying Wi-Fi, thus 
serving as an innovative model aiming at replicability across the EU.  

1.5.3.  Lessons learned from similar experiences in the past 

In recent years, this type of free WiFi access project promoted by municipal authorities has 
been  emerging  in  many  local  areas  across  Europe.  This  scheme  will  therefore  build  on  this 
experience  and  reinforce  the  replicability  of  this  model  by  scaling  it  up  to  all  EU  Member 
States simultenously. 

1.5.4.  Compatibility and possible synergy with other appropriate instruments 

The  initiative  will  complement  the  rollout  of  digital  networks  funded  by  the  European 
Structural and Investment Funds (mostly ERDF and EAFRD) that bring backhaul and access 
broadband networks in areas where telecom operators have expressed no interest to invest. It 
will therefore create a further incentive for local authorities to equip the whole territory under 
their jurisdiction and connect those public space with very high-capacity backhaul networks. 

The  initiative  will  also  encourage  the  development  of  innovative  digital  services  and 
applications produced locally – often by local SMEs. For instance, building on the digitisation 
of local content and other historic sources, a museum or an outdoor heritage site may develop 
"enhanced  reality"  apps  to  enrich  visitors'  experience.  The  same  applies  for  eTourism  apps 
benefiting local commerce and municipal activities. This initiative will therefore underpin the 
digital entrepreneurship policy of the European Commission. 

1.6. 

Duration and financial impact  

x Proposal/initiative of limited duration  

–  x  Proposal/initiative in effect from 2017 to 2020 

–  x  Financial impact from 2017 to 2020  

 Proposal/initiative of unlimited duration 

–  Implementation with a start-up period from XXX to XXX, 

–  followed by full-scale operation. 
1.7.  Management mode(s) planned20  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–  x  by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated; 

–   international organisations and their agencies (to be specified); 

–  the EIB and the European Investment Fund; 

–   bodies referred to in Articles 208 and 209 of the Financial Regulation; 

20 

Details of management modes and references to the Financial Regulation may be found on the 
BudgWeb site: 
https://myintracomm.ec.europa.eu/budgweb/EN/man/budgmanag/Pages/budgmanag.aspx  

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–   public law bodies; 

–   bodies governed by private law with a public service mission to the extent that 

they provide adequate financial guarantees; 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  provide  adequate 
financial guarantees; 

–    persons  entrusted  with  the  implementation  of  specific  actions  in  the  CFSP 

pursuant to Title V of the TEU, and identified in the relevant basic act. 

– 

If more than one management mode is indicated, please provide details in the ‘Comments’ section. 

Comments  

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

Specify frequency and conditions. 

A monitoring system will be put in place to ensure that this initiative is implemented 
quickly  and  produces  immediate  results.  It  will  be  implemented  using  primarily 
online  tools  and  sample  auditing  of  installations  at  the  local  wireless  access  points 
level. 

2.2.  Management and control system  

2.2.1.  Risk(s) identified  

Implementation Risk: the non-bureaucratic nature of the voucher scheme will build 
on  experience  of  similar  initiatives  (e.g.  ICT  innovation  for  SMEs,  satellite 
connectivity, etc.) at regional and national levels but it will be scaled up at EU l 

Take  up  risk:  established  on  a  “first-come,  first-served”  basis,  there  is  a  risk  of 
unbalanced  take-up  between  territories.  The  Commission  is  however  committed  to 
ensure  a  balanced  geographical  impact  and  to  take  into  account  specific  needs  of 
smaller and economically lagging behind Member States and regions 

Security and data protection risk: the scheme will ensure full protection of personnal 
data  and  sufficient  level  of  authentication  to  ensure  the  user-friendliness  of  the 
connection at the access point level. 

Reputation  risk:  the  quality  of  service  will  be  ensured  through  beneficiaries' 
commitment  to  build  on  very  high-speed  broadband  connectivity  enabling  delivery 
of high quality Internet experience to users and will be regularly monitored. 

2.2.2. 

#Information concerning the internal control system set up 

The agreements and decisions for implementing the actions under CEF will provide 
for  supervision  and  financial  control  by  the  Commission,  or  any  representative 
authorised by the Commission, as well as audits by the Court of Auditors and on-the-
spot  checks  carried  out  by  the  European  Anti-Fraud  Office  (OLAF),  in  accordance 
with the procedures laid down in Council Regulation (Euratom, EC) No 2185/96 of 
11 November 1996 concerning on-the-spot checks and inspections carried out by the 
Commission  in  order  to  protect  the  European  Communities'  financial  interests 
against  fraud  and  other  irregularities  and  Regulation  (EC)  No  1073/1999  of  the 
European Parliament and of the Council of 25 May 1999 concerning investigations 
conducted by OLAF.  

2.2.3.  Estimate of the costs and benefits of the controls and assessment of the expected level 

of risk of error  

Summary of 
controls 

Amount in 
MEUR 

Management of 
actions from 
evaluation to ex-post 
audits 

0.060 

Nb of beneficiaries: 
transactions (% of 
total) 
1) global monitoring 
of all projects: 100% 

2) audit of selected 
projects: 5% 

Depth of control * 
(assessment 1-4) 

1 

4 

Coverage 
(% of 
value) 

100% 

10% 

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2.3.  Measures to prevent fraud and irregularities  

Specify existing or envisaged prevention and protection measures. 

The Commission shall ensure that, when actions financed under this Regulation are 
implemented, the financial interests of the Union are protected by the application of 
preventive  measures  against  fraud,  corruption  and  any  other  illegal  activities,  by 
effective checks and by the recovery of amounts unduly paid and, if irregularities are 
detected,  by  effective,  proportional  and  dissuasive  penalties,  in  accordance  with 
Council Regulation (EC, Euratom) No 2988/95 , Council Regulation (Euratom, EC) 
No 2185/96 and with Regulation (EC) No 1073/1999 of the European Parliament and 
of the Council. 

Contracts will be based on standard models, which will set out the generally 
applicable anti-fraud measures. 

3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

  New budget lines requested  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

1a  Competitiveness 
employment 

for 

growth 

and 

Diff./Non-
diff. 

from 
EFTA 
countries 

from 
candidate 
countries 

from third 
countries 

within the 
meaning of 
Article 21(2)(b) of 
the Financial 
Regulation  

09 03 04 Wireless for EU (W4EU)   

Diff 

YES 

NO 

NO 

NO 

Heading of 
multiannual 
financial 
framework 

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3.2. 

Estimated impact on expenditure  

[This section should be filled in using the spreadsheet on budget data of an administrative nature (second document in annex to this 
financial statement) and uploaded to DECIDE for interservice consultation purposes.] 

3.2.1. 

Summary of estimated impact on expenditure  

EUR million (to three decimal places) 

Heading of multiannual financial  
framework  

1a 

 Competitiveness for growth and employment 

The appropriations required by this proposal are to be fully financed within the Multiannual Financial Framework 2014-2020. 
As indicated below, EUR 70 million are to be reallocated within the programmed amounts for the telecommunications-strand of 
the Connecting Europe Facility over 2017-2020 and EUR 50 million will be funded by making use of the Unallocated Margin.  

Sources of financing for the initiative 

2017 

2018 

2019 

2020 

Total 

09 03 02 Creating an environment more conducive to private 
investment for telecommunication infrastructure projects — 
CEF broadband 

19,422 

19,967 

39,389 

09 03 03 Promoting interoperability, sustainable deployment, 
operation and upgrading of trans-European digital service 
infrastructures, as well as coordination at European level 

0,578 

09 04 02 01 Leadership in information and communications 
technology (LEIT) 

30,03321 

Heading 1a unallocated margin 

49,650 

0,350 

0,928 

30,033 

49,650 

TOTAL  

20,000 

50,000 

49,650 

0,350 

120,000 

21 

This amount will be returned from CEF DSI (09.0303) to H2020 in 2019-2020 

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20 

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DG:  CNECT / MOVE 

Operational appropriations  MEUR 

2017 

2018 

2019 

2020 

TOTAL 

09 03 04 Wireless for EU (W4EU)   

Commitments 

Payments 

(1) 

(2) 

19,330 
0 

Appropriations of an administrative nature financed from the envelope of specific programmes22  

06 01 06 01 Innovation and 
networks Executive Agency – 
contribution from CEF 

09 01 04 01 Suppport Expenditure 
for  Connecting Europe Facility 
(CEF) 

Commitments 

Payments 

Commitments 

Payments 

TOTAL appropriations 
for DG CONNECT/MOVE 

Commitments 

=1+1a +3 

Payments 

=2+2a 
+3 

0,580 

0,580 

0,090 

0,090 

20,000 

0,670 

49,610 
44,135 

0,365 

0,365 

0,025 

0,025 

50,000 

44,525 

49,260 
49,435 

0,365 

0,365 

0,025 

0,025 

49,650 

49,825 

24,630 

0,290 

0,290 

0,060 

0,060 

0,350 

24,980 

118,200 
118,200 

1,600 

1,600 

0,200 

0,200 

120,000 

120,000 

22 

EN 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, 
direct research. 

21 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
Heading of multiannual financial  
framework  

5 

‘Administrative expenditure’ 

DG: <CONNECT …….> 

 Human resources  
 Other administrative expenditure  

TOTAL DG CONNECT 

Appropriations  

X 

TOTAL appropriations 
under HEADING 5 
of the multiannual financial framework  

(Total  commitments  = 
Total payments) 

2017 

2018 

2019 

2020 

TOTAL 

EUR million (to three decimal places) 

0,204 

0,020 

0,224 

0,204 

0,020 

0,224 

0,204 

0,010 

0,214 

0,204 

0,010 

0,214 

0,816 

0,060 

0,876 

0,224 

0,224 

0,214 

0,214 

0,876 

2017 

2018 

2019 

2020 

TOTAL 

EUR million (to three decimal places) 

TOTAL appropriations  
under HEADINGS 1 to 5 
of the multiannual financial framework  

Commitments 

Payments 

20,224 

0,894 

50,224 

44,749 

49,864 

0,564 

120,876 

50,039 

25,194 

120,876 

EN 

22 

EN 

 
  
 
 
 
 
3.2.2.  Estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

–  x  The proposal/initiative requires the use of operational appropriations, as explained below: 

Indicate 
objectives and 
outputs  

 

2017 

2018 

2019 

2020 

TOTAL 

OUTPUTS 

Type23 

Average cost 

Cost 

Cost 

Cost 

Cost 

Total No 

Total cost 

o
N

o
N

o
N

o
N

Commitment appropriations in EUR million (to three decimal places) 

SPECIFIC OBJECTIVE  

Accesses 

TOTAL COST 

967 

967 

0,02 

19,330 

2480 

2480 

0,02 

49,610 

2463 

2463 

0,02 

49,260 

5910 

5910 

118,200 

118,200 

23 

Outputs are products and services to be supplied (e.g.: number of student exchanges financed, number of km of roads built, etc.). 

EN 

23 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.  Estimated impact on appropriations of an administrative nature 

3.2.3.1.  Summary  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–  x  The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below: 

EUR million (to three decimal places) 

2017 

2018 

2019 

2020 

TOTAL 

HEADING 5 
of the multiannual financial 
framework 

Human resources  

0,204 

0,204 

0,204 

0,204 

0,816 

Other administrative 
expenditure  

Subtotal HEADING 5 
of the multiannual financial 
framework  

Outside HEADING 524 
of the multiannual financial 
framework  

Human resources  

Other expenditure  
of an administrative nature 

Subtotal  
outside HEADING 5 
of the multiannual financial 
framework  

0,020 

0,020 

0,010 

0,010 

0,060 

0,224 

0,224 

0,214 

0,214 

0,876 

0,090 

0,025 

0,025 

0,060 

0,200 

0,090 

0,025 

0,025 

0,060 

0,200 

TOTAL 

0,314 

0,249 

0,239 

0,274 

1,076 

The appropriations required for human resources and other expenditure of an administrative nature will be met by 
appropriations from the DG that are already assigned to management of the action and/or have been redeployed within the 
DG, together if necessary with any additional allocation which may be granted to the managing DG under the annual 
allocation procedure and in the light of budgetary constraints.

24 

Technical  and/or  administrative  assistance  and  expenditure  in  support  of  the  implementation  of 
EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

24 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
3.2.3.2.  Estimated requirements of human resources 

–    The proposal/initiative does not require the use of human resources.  

–  X  The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below: 

 Establishment plan posts (officials and temporary staff) 

09 01 01 01 (Headquarters and Commission’s 
Representation Offices) 

XX 01 01 02 (Delegations) 

XX 01 05 01 (Indirect research) 

10 01 05 01 (Direct research) 

 External staff (in Full Time Equivalent unit: FTE)25 

09 01 02 01 (AC, END, INT from the ‘global 
envelope’) 

XX 01 02 02 (AC, AL, END, INT and JED in the 
delegations) 

XX 01 04 yy 26 

- at Headquarters 

- in Delegations  

XX 01 05 02 (AC, END, INT - Indirect research) 

10 01 05 02 (AC, END, INT - Direct research) 

Other budget lines (specify) 

TOTAL 

Estimate to be expressed in full time equivalent units 

2017 

2018 

2019 

2020 

1,0  

1,0  

1,0  

1,0  

1,0 

1,0 

1,0 

1,0 

2,0 

2,0 

2,0 

2,0 

09 is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the 
action  and/or  have  been  redeployed  within  the  DG,  together  if  necessary  with  any  additional  allocation  which 
may  be  granted  to  the  managing  DG  under  the  annual  allocation  procedure  and  in  the  light  of  budgetary 
constraints. 

Description of tasks to be carried out: 

Officials and temporary staff 

External staff 

3.2.4.  Compatibility with the current multiannual financial framework  

–  X  The  proposal/initiative  is  compatible  with  the  current  multiannual  financial 

framework. 

–    The proposal/initiative will entail reprogramming of the relevant heading in the 

multiannual financial framework. 

Explain what reprogramming is required, specifying the budget lines concerned and the corresponding 
amounts. 

–    The  proposal/initiative  requires  application  of  the  flexibility  instrument  or 

revision of the multiannual financial framework. 

25 

26 

AC=  Contract  Staff;  AL  =  Local  Staff;  END=  Seconded  National  Expert;  INT  =  agency  staff; 
JED= Junior Experts in Delegations.  
Sub-ceiling for external staff covered by operational appropriations (former ‘BA’ lines). 

EN 

25 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
                                                 
Explain what is required, specifying the headings and budget lines concerned and the corresponding 
amounts. 

3.2.5.  Third-party contributions  

–  The proposal/initiative does not provide for co-financing by third parties.  

3.3. 

Estimated impact on revenue  

–  X  The proposal/initiative has no financial impact on revenue. 

EN 

26 

   EN 

 
ANNEX 
to the LEGISLATIVE FINANCIAL STATEMENT 

Proposal for a  regulation amending Regulations (EU) No  1316/2013  and (EU) No 283/2014  as  regards 
the promotion of Internet connectivity in local communities 

Name of the proposal/initiative: 

1. 

2. 

3. 

3.1. 

3.2. 

NUMBER AND COST OF HUMAN RESOURCES CONSIDERED NECESSARY 

COST OF OTHER ADMINISTRATIVE EXPENDITURE 

METHODS OF CALCULATION USED FOR ESTIMATING COSTS 

Human resources 

Other administrative expenditure 

This annex must accompany the legislative financial statement when the inter-services consultation is launched. 

The data tables are used as a source for the tables contained in the legislative financial statement. They are strictly 
for internal use within the Commission. 

EN 

27 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
1. 

COST OF HUMAN RESOURCES CONSIDERED NECESSARY 

 The proposal/initiative does not require the use of human resources 
XThe proposal/initiative requires the use of human resources, as explained below: 

HEADING 5 
of the multiannual financial framework 

2017 

2018 

2019 

2020 

EUR million (to three decimal places) 

... enter as many years as 
necessary to show the 
duration of the impact 
(see point 1.6) 

TOTAL 

 Establishment plan posts (officials and temporary staff) 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

09  01  01  01 
Commission’s Representation Offices) 

(Headquarters  and 

XX 01 01 02 (in Union Delegations) 

 External staff 27 

09 01 02 01 (‘global envelope’) 

XX 01 02 02 (in Union Delegations) 

AD 

1 

0.134 

1 

0.134 

1 

0.134 

1 

0.134 

1 

0.536 

AST 

AD 

AST 

AC 

1 

0.070 

1 

0.070 

1 

0.070 

1 

0.070 

1 

0.280 

END 

INT 

AC 

AL 

27 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JED = junior experts in delegations. 

EN 

28 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
END 

INT 

JED 

Other budget lines (specify) 

Subtotal – HEADING 5 
of the multiannual financial framework 

2 

0.204 

2 

0.204 

2 

0.204 

2 

0.204 

0.816 

2 

XX is the policy area or budget title concerned. 

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with any additional 
allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

EN 

29 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 5 
of the multiannual financial framework 

2017 

2018 

2019 

2020 

... enter as many years as 
necessary to show the 
duration of the impact 
(see point 1.6) 

TOTAL 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

FTE 

Appropriations 

 Establishment plan posts (officials and temporary staff) 

10 01 05 02 (Direct research) 

XX 01 05 01 (Indirect research) 

 External staff 28 

09 01 04 01  
Sub-ceiling for external 
staff from operational 
appropriations (former 
‘BA’ lines). 

- at 
Headquarters 

- in Union 
delegations 

XX 01 05 02 (Indirect research) 

AD 

AST 

AD 

AST 

AC 

END 

INT 

AC 

AL 

END 

INT 

JED 

AC 

END 

28 

AC = Contract Staff; AL = Local Staff; END = Seconded National Expert; INT= agency staff; JED = junior experts in delegations. 

EN 

30 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
INT 

AC 

END 

INT 

10 01 05 02 (Direct research) 

Other budget lines (specify) 

Subtotal – Outside HEADING 5 
of the multiannual financial framework 

09 is the policy area or budget title 
concerned.TOTAL 

The human resources required will be met by staff from the DG who are already assigned to management of the action and/or have been redeployed within the DG, together if necessary with 
any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of budgetary constraints. 

EN 

31 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2. 

COST OF OTHER ADMINISTRATIVE EXPENDITURE 

 The proposal/initiative does not require the use of administrative appropriations 
x  The proposal/initiative requires the use of administrative appropriations, as explained below: 

2017 

2018 

2019 

2020 

EUR million (to three decimal places) 

... enter as many years as necessary to show 
the duration of the impact 
 (see point 1.6) 

TOTAL 

HEADING 5 
of the multiannual financial framework 

At headquarters: 

09 01 02 11 01 - Mission and representation expenses 

0.020 

0.020 

0.010 

0.010 

0.060 

09 01 02 11 02 - Conference and meeting costs 

09 01 02 11 03 - Committees29  

09 01 02 11 04 - Studies and consultations 

09 01 02 11 05 – Information and management systems 

XX 01 03 01 – ICT equipment and services30 

Other budget lines (specify where necessary) 

In Union delegations 

XX 01 02 12 01 - Missions, conferences and representation expenses 

29 
30 

Specify the type of committee and the group to which it belongs. 
ICT: Information and Communication Technologies: DIGIT must be consulted. 

EN 

32 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                 
XX 01 02 12 02 - Further training of staff 

XX 01 03 02 01 - Acquisition, renting and related expenditure 

XX 01 03 02 02 Equipment, furniture, supplies and services 

Subtotal HEADING 5 
of the multiannual financial framework 

09 is the policy area or budget title concerned. 

0.020 

0.020 

0.010 

0.010 

0.060 

EN 

33 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
2017 

2018 

2019 

2020 

EUR million (to three decimal places) 

... enter as many years as necessary to show 
the duration of the impact 
(see point 1.6) 

TOTAL 

0.090 

0.025 

0.025 

0.060 

0.200 

0.090 

0.025 

0.025 

0.060 

0.200 

Outside HEADING 5 
of the multiannual financial framework 

09 01 04 01 - Expenditure on technical and administrative 
assistance (not including external staff) from operational 
appropriations (former 'BA' lines) 

- at Headquarters 

- in Union delegations 

XX 01 05 03 - Other management expenditure for indirect 
research 

10 01 05 03 - Other management expenditure for direct 
research 

Other budget lines (specify where necessary) 

Sub-total – Outside HEADING 5 
of the multiannual financial framework 

XX is the policy area or budget title concerned. 

TOTAL 
HEADING 5 and Outside HEADING 5 
of the multiannual financial framework 

0.314 

0.249 

0.239 

0.274 

EN 

34 

1.076 

EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
The administrative appropriations required will be met by the appropriations which are already assigned to management of the action and/or which have been redeployed, together if 
necessary with any additional allocation which may be granted to the managing DG under the annual allocation procedure and in the light of existing budgetary constraints. 

EN 

35 

EN 

 
  
 
 
 
3. 

METHODS OF CALCULATION USED TO ESTIMATE COSTS 

3.1. 

 Human resources 

This part sets out the method of calculation used to estimate the human resources considered necessary (workload 
assumptions, including specific jobs (Sysper 2 work profiles), staff categories and the corresponding average costs) 

HEADING 5 of the multiannual financial framework 

NB: The average costs for each category of staff at Headquarters are available on BudgWeb: 
https://myintracomm.ec.europa.eu/budgweb/EN/pre/legalbasis/Pages/pre-040-020_preparation.aspx 

 Officials and temporary staff 

Use of DG BUDG average cost  

 External staff 

Use of DG BUDG average cost  

Outside HEADING 5 of the multiannual financial framework 

 Only posts financed from the research budget  

 External staff 

3.2. 

Other administrative expenditure 

Give details of the method of calculation used for each budget line  

and in particular the underlying assumptions (e.g. number of meetings per year, average costs, etc.) 

HEADING 5 of the multiannual financial framework 

1 visit each MS during the  first 2 years (average cost +/-715€) 
Follow up less intensive during the last 2 years.  

EN 

36 

   EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Outside HEADING 5 of the multiannual financial framework 
IT development in 2017 and maintenance thereafter 
Costs of evaluation at the end of the implementation 

EN 

37 

   EN