Please treat all transactions and clients names as confidentialSTATE AID AND IMPLICATIONSFOR PROJECT DEVELOMENTBirmingham ...
Please treat all transactions and clients names as confidential- Current State Aid landscape- Implications for Cities- Pot...
Please treat all transactions and clients names as confidential> The EU Guidelines for the application of State aid rules ...
Please treat all transactions and clients names as confidential> UK National Broadband Scheme for the UK- EU Commission’s ...
Please treat all transactions and clients names as confidential> State Aid Landscape - unclear> No infrastructure procurem...
Please treat all transactions and clients names as confidential> MEIP- A public contribution from public funds does not in...
Please treat all transactions and clients names as confidentialPotential State Aid Neutral Options continued> Services of ...
Please treat all transactions and clients names as confidential> Infrastructure Options- Ducts- Shared tenant services- de...
Please treat all transactions and clients names as confidential> Vouchers- Cannot replicate other interventions- Requires ...
Please treat all transactions and clients names as confidential> Minimise risk of challenge – key requirement of DCMS> 201...
Please treat all transactions and clients names as confidentialContact DetailsTracey SheehanTaylor Wessing LLPt.sheehan@ta...
Please treat all transactions and clients names as confidentialOffice detailsBeijing (Rep office)Unit 2307&08, West Tower,...
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Tracey Sheehan & Robin Bosworth - Taylor Wessing & Mott Macdonald inca ultra-connected cities seminar - 30 april 2013-v4

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Tracey Sheehan and Robin Bosworth's presentation to the INCA Ultra-Connected Cities seminar, Birmingham, 30-04-13

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Tracey Sheehan & Robin Bosworth - Taylor Wessing & Mott Macdonald inca ultra-connected cities seminar - 30 april 2013-v4

  1. 1. Please treat all transactions and clients names as confidentialSTATE AID AND IMPLICATIONSFOR PROJECT DEVELOMENTBirmingham 30thApril 2013Robin BosworthTracey SheehanINCAULTRA-CONNECTEDCITIES SEMINAR
  2. 2. Please treat all transactions and clients names as confidential- Current State Aid landscape- Implications for Cities- Potential State Aid Neutral Project Options- Commercial Models- Conclusions and ImplicationsContentsINSERT IMAGE HEREGo to Insert, Picture, From file,then select relevant picture fromthe firm-wide image library.The image will need to fit flush tothe green line.
  3. 3. Please treat all transactions and clients names as confidential> The EU Guidelines for the application of State aid rules in relation to the rapiddeployment of broadband networks (2013/C 25/01) (“the Revised BroadbandGuidelines”)> Update as to the position – UK Government has not written to provide itsexplicit unconditional agreement within the 2 months deadline at paragraph(90)> In the absence of any reply the EU Commission will assume that the MemberState in question does not agree with the proposed measures> Overview of the main changes:- Open access - increased levels of access (i.e. dark fibre, ducts etc.)- Allows for Ultrafast Networks- Strict competitive conditions for Ultrafast Networks- More lenience in rural areas in respect of access- Introduction of the concept of step change- Increased transparency and reporting requirements- Increased role for the NRA’s- Raised the claw back threshold from £1m to £10mCurrent State Aid Landscape
  4. 4. Please treat all transactions and clients names as confidential> UK National Broadband Scheme for the UK- EU Commission’s view is that this decision can not be transposed ontoUrban projects> SCCP – Urban Umbrella notification has not been progressed – The schemelooks to have been changed to Vouchers- Vouchers used at national level will be subject to a State Aidnotification> Birmingham Digital Districts State Aid Clearance- EU Commission challenged by incumbents on grounds of: Alleged Overbuild Service portfolio - access conditions Cream skimmingCurrent State Aid Landscape (cont.)
  5. 5. Please treat all transactions and clients names as confidential> State Aid Landscape - unclear> No infrastructure procurements using UBF funds> Incumbents are opposed to certain requirements of the RevisedBroadband Guidelines – Access Conditions> If a City wants to fund an Ultrafast Network it would need to:- Lodge it’s own State Aid Notification for approval Full investigation – 9-18 months? Risk of appeal- Seek a State aid neutral routeImplication for Cities
  6. 6. Please treat all transactions and clients names as confidential> MEIP- A public contribution from public funds does not involve State Aid if it takesplace at the same time as a significant capital contribution on the part of aprivate investor (operating under normal market economy conditions) madein comparable circumstances- Not impossible but not an easy option- Requirement of transparency- Needs a robust business plan showing an adequate return on investment- Proportionate Control/Risk Sharing- No contribution in kind- Risk of Challenge> Loan- If loan is on “soft” terms it will be considered State Aid as it provides therecipient with an undue economic advantage- Any loan would needs to be at arms length terms- Need to show a commercial ratePotential State Aid Neutral Options
  7. 7. Please treat all transactions and clients names as confidentialPotential State Aid Neutral Options continued> Services of General Economic Interest (SGEI)- Definition:A SGEI is a service of an economic nature that public authorities identify asbeing of particular importance to citizens, but which are not supplied bymarket forces alone, or at least not to the extent and under the conditionsrequired by society- To be regarded as a SGEI must satisfy Article 106(2) TFEU, the Altmarkjurisprudence and the new SGEI package adopted on 20 December 2011- Difficult case to argue in respect of an urban setting- The Commission considers that: in areas where private investors have already invested in broadbandinfrastructure; and are already providing competitive broadband services with adequatebroadband coveragethen setting up a parallel competitive and publicly funded network could not beconsidered to be a SGEI (paragraph 20 of Revised Broadband Guidelines)
  8. 8. Please treat all transactions and clients names as confidential> Infrastructure Options- Ducts- Shared tenant services- developers/landlords- framework for ICT inconstruction projects- Wireless Concessions- timing- industry appetite- Public Sectorsites/solutions- Incubators- showcase for SMEs- Private sector fundedfibre build- anchor tenant?- loansPossible ‘Neutral’ Project Scope
  9. 9. Please treat all transactions and clients names as confidential> Vouchers- Cannot replicate other interventions- Requires granular mapping and analysis- Sector based approach- How to consolidate demand?- Geographic area?- Multi- tenanted sites- Requires dedicated resources- Market communications- Stakeholder engagement- Administration and audit- Avoid a post code lottery or disappoint the market> Demand stimulation- Market surveys- Registration programmes- Demos- Training- Sector/segment driven campaigns/subsidiesDemand Side Measures
  10. 10. Please treat all transactions and clients names as confidential> Minimise risk of challenge – key requirement of DCMS> 2015 !> Will a demand side only measure deliver the aspirations of the City?- Provide ubiquitous coverage- USP to drive inward investment> Multiple project streams- Vouchers and demand stimulation +- Wireless procurement> Can/should a parallel state aid neutral infrastructure based approach beexplored?- There is some market appetite- Alternative funding sources – EU, Private- Harness:- public sector assets- private sector developmentsImplications for Project Delivery
  11. 11. Please treat all transactions and clients names as confidentialContact DetailsTracey SheehanTaylor Wessing LLPt.sheehan@taylorwessing.comRobin BosworthMott MacDonald Group Limitedrobin.bosworth@mottmac.com
  12. 12. Please treat all transactions and clients names as confidentialOffice detailsBeijing (Rep office)Unit 2307&08, West Tower, TwinTowers, B-12 Jianguomenwai Ave,Chaoyang DistrictBeijing 100022T. +86 10 8587 5886F. +86 10 8587 5885BerlinEbertstraße 1510117 BerlinT. +49 (0)30 88 56 36 0F. +49 (0)30 88 56 36 100BratislavaTaylor Wessing e|n|w|cadvokáti s.r.o.Panenská 6SK-81103 BratislavaT. + 421 (2) 5263 2804F. + 421 (2) 5263 2677Brno (Rep office)Taylor Wessing e|n|w|cv.o.s. – advokátiDominikánské námĕstí 4/5CZ-602 00 BrnoT. + 420 543 420 401F. + 420 543 420 402BrusselsTrône House4 Rue du Trône1000 BrusselsT. +32 (0)2 289 6060F. +32 (0)2 289 6070BudapestBánki és Társai Ügyvédi Irodain cooperation withTaylor Wessing e|n|w|cRechtsanwälte GmbHDorottya u. 1, III. em.H-1051 BudapestT. + 36 (1) 327 04 07F. + 36 (1) 327 04 10Cambridge24 Hills RoadCambridge, CB2 1JPT. +44 (0)1223 446400F. +44 (0)1223 446401Dubai26th Floor, Rolex Tower,Sheikh Zayed Road,P.O. Box 33675Dubai, United Arab EmiratesT. +971 (0)4 309 1000F. +971 (0)4 358 7732DüsseldorfBenrather Straße 1540213 DüsseldorfT. +49 (0)211 83 87 0F. +49 (0)211 83 87 100FrankfurtSenckenberganlage 20-2260325 Frankfurt a.M.T. +49 (0)69 971 30 0F. +49 (0)69 971 30 100HamburgHanseatic Trade CenterAm Sandtorkai 4120457 HamburgT. +49 (0)4 0 36 80 30F. +49 (0)4 0 36 80 3280KievTaylor Wessing e|n|w|cLaw Firm TOVIllinsky Business Centervul. Illinska 8Entrance 11, 6th floorUA-04070 KievT. +380 (44) 369 32 44F. +380 (44) 369 32 46Klagenfurt (Rep office)Taylor Wessing e|n|w|cRechtsanwälte GmbHAlter Platz 1A-9020 KlagenfurtAustriaT. +43 (0)463 51 52 27London5 New Street SquareLondon EC4A 3TWT. +44 (0)20 7300 7000F. +44 (0)20 7300 7100LondonTech CityShoreditch Business Centre64 Great Eastern StreetLondon EC2A 3QRT. +44 (0) 20 7300 7000MunichIsartorplatz 8, 80331MunichT. +49 (0)89 2 10 38 0F. +49 (0)89 2 10 38 300Paris42 avenue Montaigne75008 ParisT. +33 (0)1 72 74 03 33F. +33 (0)1 72 74 03 34PragueTaylor Wessing e|n|w|cv.o.s. – advokátiU Prašné brány 1CZ-110 00 Praha 1T. +420 224 81 92 16F. +420 224 81 92 17Shanghai (Rep office)Unit 1509, United PlazaNo. 1468,Nanjing West RoadShanghai 200040T. +86 21 6247 7247F. +86 21 6247 6248SingaporeRHTLaw Taylor WessingSix Battery Road#09-01, #10-01Singapore 049909T. + 65 6381 6868F. + 65 6381 6869ViennaTaylor Wessing e|n|w|cRechtsanwälte GmbHSchwarzenbergplatz 7A-1030 ViennaT. + 43 (0)1 716 55F. + 43 (0)1 716 55 99WarsawTaylor Wessing e|n|w|cRechtsanwälte E. Stobiecka -Kancelaria Prawna Sp. K.ul. Mokotowska 1PL-00640 WarszawaT. +48 (22) 584 97 40F. +48 (22) 584 97 50
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