Modern broadband networks provide high-speed internet and therefore great opportunities for rural areas. They are helping to ensure that it will be possible to work there in the future as well. The Federal Council’s gigabit strategy includes a programme to promote broadband expansion and thereby counteract a digital urban-rural divide. The programme will also help Switzerland to catch up with other countries in the expansion of fibre-optic networks. The structure of the programme is regulated in the new Federal Act on Promoting Broadband Infrastructure Expansion (Broadband Promotion Act, BPA).

Programme aims

The draft law aims to promote the nationwide expansion of fixed networks with download speeds of at least one gigabit per second (Gbit/s). Market players will still be primarily responsible for expanding the network without any additional financial support; this programme will provide kick-start funding in areas where it is not in the market players’ interest to invest in network expansion with a capacity of 1 Gbit/s. This is likely to be the case in sparsely populated areas. The financial support will go towards expanding fibre-optic networks or wireless infrastructure – the latter in particular where the cost of expanding the fibre-optic network is very high.

Programme conditions

The communes can apply for the available funding, with the amount granted limited to the expected financial shortfall in an expansion project. In order to ensure effective competition, the operators of the subsidised infrastructure must grant access to other providers, i.e. several providers may offer their services via the same infrastructure. The funding programme is to be limited to a period of seven to ten years.

Funding

The programme will receive funding of around CHF 730 million. The draft bill under consultation states that the federal government should cover 50 per cent of the shortfall in an expansion project, on the condition that the canton concerned funds the other 50 per cent. Federal expenditure is limited to a maximum of CHF 375 million (including up to CHF 10 million for programme administration), to be financed via a temporary ring-fenced use of mobile telephony licence fees.

The consultation lasts until 23 June 2025.

Consultation launched on programme to expand high-speed internet throughout Switzerland