The Italian government's plan to advance an ultra-fast broadband network has been approved by the European Commission. Italy's superfast broadband plan, with a budget of around 4 billion euros, is in line with EU state aid rules, the European Commission said, noting that it would expand internet access without compromising competition.

"The broadband plan will bring faster internet to consumers and businesses in Italy. The plan will help Italy build the necessary infrastructure and contribute to the establishment of a digital single market in the European Union," said European Competition Commissioner Margrethe Vestager.

According to a statement issued by the European Union, Italy's ultra-fast broadband plan will achieve Italy's goal of providing 100Mbps broadband to 85% of households and public buildings by the end of 2022. The Italian government will provide full financial support for this infrastructure and will choose a company to run it.

But the approved budget for the superfast broadband plan doesn't quite match what Italian Prime Minister Matteo Renzi revealed to the outside world last year. At that time, Renzi said that the state would provide 7 billion euros of funds, of which the government would provide 4.9 billion euros and the local governments would provide 2.1 billion euros. The investment is part of a plan to give all Italian citizens access to high-speed broadband connections in 2020.

The Italian government submitted a national high-speed fiber-optic network promotion plan worth 7 billion euros to the European Union in June last year. A draft of the document includes measures such as a preferential plan for users upgrading to 100Mbps broadband, opening up the gas and grid of Italian utilities such as Enel to speed up the rollout of fiber optic cables.

The European Commission said it had assessed Italy's superfast broadband plan against the EU's state aid rules, with the aim of ensuring that public funding does not substitute for private investment and that multiple service providers are able to use this infrastructure on a non-discriminatory basis, thereby ensuring that Protect competition.

The European Commission said Italy plans to use public funds for areas where end-users can access broadband networks with speeds of less than 30Mbps.

The EU promotes the popularization and construction of rural broadband through the establishment of various special funds, such as the European Fund for Regional Development (ERDF) and the European Fund for Agricultural and Rural Development (EAFRD). Member States can submit applications to obtain funds for the construction of broadband networks in rural areas. The European Commission has been very concerned about providing Internet access to rural areas, but at the same time, the European Commission has also been very cautious about approving state aid to the broadband sector, in order to prevent the flow of state aid to those who already have broadband infrastructure and compete with telecommunications companies area.

In early 2015, the European Union released a draft guideline showing that public funds for rural broadband internet would be allowed to be included in EU countries' state aid schemes. At present, European countries and local governments are interested in providing subsidies to expand broadband networks in rural areas. But the EU strongly disapproves of state investment in areas where private investors are willing to step in, so it explicitly requires governments that investment in broadband networks should be limited to those areas that currently lack Internet access. The further clarification of state investment regulations for broadband networks comes as private investment by telecom operators in high-speed internet has yet to be stimulated.