State investments in broadband expansion this year amount to 900 million euros. This has led to investments of more than two billion, according to Florian Tursky (ÖVP), State Secretary for Digitization. Recently, EUR 150 million was disbursed through the ‘Access’ financing programme. Most of the money went to Styria and Lower Austria.
“Access” is aimed at national companies, municipalities and infrastructure and telecommunications companies and aims at the availability of gigabit-capable infrastructure in those areas of Austria that are underdeveloped or underdeveloped due to private sector expansion. With the second broadband billion, worth 1.4 billion euros, broadband expansion will receive “a significant boost in the coming months and years”, the State Secretary promises.
Providers were able to significantly increase sales
There are three major network operators in Austria: Telekom Austria, which has a majority in Mexico, Magenta, the subsidiary of Deutsche Telekom, and Drei, a subsidiary of China’s Hutchison Group. Telekom registered a turnover increase of 4.4 percent to 4.748 billion euros in the previous year and net profit increased by 17 percent to 455 million euros. Magenta also grew strongly: annual sales increased by almost 4 percent to EUR 1.351 billion, operating income (EBITDA AL) before special effects amounted to EUR 543 million, 9.5 percent above the comparable figure last year. Drei slightly increased sales to EUR 866 million, while operating profit remained stable at EUR 192 million.
The EU Court of Auditors criticized the slow expansion of 5G
Early this year, the EU Court of Auditors criticized Austria’s expansion, saying the rollout of next-generation mobile communications, 5G, was moving too slowly. The government agency RTR pointed out that the EU would use old numbers here. The requirements for the network providers would ensure that all major traffic routes and all urban areas are covered by the new, faster 5G mobile communication standard by the end of 2023. RTR assumes that the EU’s supply targets will be met as early as 2023 and not until 2025, RTR director Klaus M. Steinmaurer explained at the time.
Mobile frequencies are very lucrative for the state
The allocation of radio frequencies is an important source of revenue for the state, with the last major auction for the allocation of 5G radio bands, with proceeds of €202 million, entering the state budget significantly less than the record auction of UMTS frequencies for €2 billion. flowed. The government defended the lower yield by saying that the telecom companies also needed money to expand the network. In Germany, the 5G auction raised 6.6 billion euros. RTR boss Steinmaurer emphasized to journalists at the time that the auction in Vienna was by no means comparable to that in Berlin, because much higher requirements were set in this country. The network operators were also satisfied with the 5G auction.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
