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Gigabit-capable infrastructure; application for funding

The Free State of Bavaria is promoting the expansion of gigabit-capable broadband networks in Bavaria.

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Procedure details

Purpose

Connection to future-proof network infrastructures is a key location factor in municipalities. In rural areas, it is almost impossible to build a nationwide gigabit-capable infrastructure without funding due to the low profitability of expansion and operation. The Bavarian gigabit support program, the only one of its kind in Germany, provides targeted support to municipalities for the provision of gigabit-capable infrastructure in areas where there is no self-economic expansion.

Commercial connections in particular are to benefit from the new funding if they do not yet have a reliable network with bandwidths of at least 200 Mbit/s symmetrically (upload and download) either currently or as a result of their own expansion in the next three years. Private households can benefit if a reliable supply of at least 100 Mbit/s in download is not available or at least foreseeable.

Object

Funding is provided for expenditure by the grant recipient to private or municipal network operators (economic viability gap model) or expenditure by the grant recipient for the construction of its own passive broadband infrastructure (operator model).

Grant recipients

Grant recipients are municipalities, associations of municipalities and associations of municipalities in the Free State of Bavaria.

Eligible costs

In the economic viability gap model, the eligible costs are the expenses for closing the economic viability gap and in the operator model the expenses for the construction of the passive infrastructure less the lease income.

Type and amount

The funding rate and the maximum funding amount per municipality are determined by the approval authority.

The municipalities receive maximum funding amounts of EUR 2,500 to EUR 6,000 per address in the "gray area" with a funding rate of 80% to 90%. Municipalities with low financial strength can benefit from a hardship provision.

The maximum funding amounts per municipality are between EUR 3 million and EUR 8 million.

Further information on the funding conditions can be found in a reference document published on the website of the Bavarian Broadband Center (see "Related links").

Miscellaneous

The federal government's gigabit program is another funding instrument available. In order to raise the low federal funding rates to the Bavarian level, the Free State of Bavaria provides funding for co-financing. The federal broadband program is usually more suitable for municipalities with existing supervectoring coverage. The Bavarian Broadband Center advises municipalities on the differences.

Areas of a municipality that are not yet supplied with a Next Generation Access Network (NGA network) (so-called "white spot") or are only supplied with an NGA network (so-called "gray spot") and fall below certain minimum bandwidths ("pick-up thresholds") are eligible as development areas.

Private connections in gray or white areas are eligible for funding if they are not yet supplied with at least 100 Mbit/s download speeds.

Commercial connections in gray or white areas are eligible if they are not yet supplied with at least 200 Mbit/s symmetrically (i.e. in download and upload) and are also not yet supplied with more than 500 Mbit/s in download.

There are further restrictions for municipalities with supervectoring coverage in the municipal area.

  • The application under the viability gap model must be accompanied by the following documents:
    • Documentation of the actual supply (building-specific presentation based on the address list; cf. No. 4.3 BayGibitR, as well as cartographic presentation).
    • Documentation of the market investigation (in particular, published announcement text with address list; cf. Nos. 4.3 and 4.4 BayGibitR, as well as cartographic representation)
    • Result of the market investigation (cf. No. 4.9 BayGibitR)
    • Documentation (of the participation competition and) of the selection procedure (in particular published announcement text including address list and cartographic representation of the development area)*.
    • Result of the selection procedure including bid evaluation and selection decision in accordance with the defined selection criteria as well as documentation of the final development area based on the address list and a cartographic representation
    • the selected offer(s) including confirmation of the selected network operator(s) according to No. 7.7 BayGibitR
    • Resolution of the responsible body on the intended selection decision and the financing of the measure
    • Plausible presentation of the economic viability gap and, if applicable, result of the plausibility check by the Bavarian Broadband Centre (cf. Nos. 7.9, 7.10 BayGibitR and No. 8 BayGibitR)
    • If applicable, proof of power of representation (if the applicant is acting on behalf of several municipalities)
    • If applicable, copy of the application for an Infrakredit Breitband from the LfA-Förderbank Bayern (LfA) as well as the consent to the exchange of data between the granting authority and the LfA.
    • Declaration of the applicant on the cooperation agreement (cf. No. 9.4 BayGibitR)
    • If applicable, agreement on inter-municipal cooperation
    • Confirmation by the selected network operator(s) that there are no unfulfilled recovery orders based on a previous decision by the European Commission to determine the inadmissibility of aid and its incompatibility with the internal market (cf. No. 15 letter a BayGibitR)
    • Confirmation by the selected network operator(s) that it is not a company in difficulty within the meaning of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (OJ EU 2014/C 249/01) (cf. No. 15 letter b BayGibitR).
    • Data sheet Recording of evaluation data
    • If applicable, presentation of the average financial strength of the last five years (if consideration of the "hardship clause" is requested).

    The granting authority may request further documents in order to check the eligibility of the planned project.

  • The following documents must be enclosed with the application in accordance with the operator model:
    • Itemized presentation of the expenditure for the construction of the passive infrastructure (cf. No. 12.1 letter f BayGibitR)
    • Decision of the responsible body on the implementation and financing of the measures to establish the broadband infrastructure
    • Documentation of the current coverage (building-by-building representation based on the address list; cf. no. 4.3 BayGibitR, as well as cartographic representation)
    • Documentation of the market exploration (in particular published announcement text with address list; cf. no. 4.3 and 4.4 BayGibitR, as well as cartographic representation)
    • Result of the market exploration (cf. No. 4.9 BayGibitR)
    • Documentation (of the participation competition and) of the selection procedure (in particular published announcement text including address list and cartographic representation of the development area)
    • Result of the selection procedure to determine the network operator including bid evaluation and selection decision according to the defined selection criteria as well as documentation of the final development area based on the address list and a cartographic representation
    • the selected offer(s) including confirmation of the selected network operator(s) in accordance with No. 7.7 BayGibitR
    • Resolution of the responsible body on the proposed selection decision and the financing of the measure
    • If applicable, proof of power of representation (if the applicant is acting on behalf of several municipalities)
    • If applicable, copy of the application for an Infrakredit broadband loan from the LfA-Förderbank Bayern (LfA)* and consent to the exchange of data between the granting authority and the LfA
    • Declaration by the applicant on the cooperation agreement (see No. 9.4 BayGibitR)
    • Agreement on inter-municipal cooperation, if applicable
    • Confirmation from the selected network operator(s) that there are no unfulfilled recovery orders based on an earlier decision by the European Commission declaring an aid inadmissible and incompatible with the internal market (cf. No. 15 letter a BayGibitR)
    • Confirmation from the selected network operator(s) that it is not a company in difficulty within the meaning of the Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty (ABI. EU 2014/C 249/01) (cf. No. 15 letter b BayGibitR)
    • Data sheet Collection of evaluation data
    • If applicable, presentation of the average financial strength of the last five years

The funding procedure according to the Bavarian Gigabit Directive is clearly structured in 9 modules. Numerous sample documents and supplementary guidelines are available to support the municipalities (see "Further links").

1. inventory in the municipal area

  • The municipality determines the current supply of broadband services in accordance with BayGibitR specifications and documents the current supply in an address list. An overview map is also created.

2. market exploration with provisional development area

  • The municipality publishes the address list and map from the survey together with a query on the network operators' own expansion plans for the next three years. The comment period of at least one month is to be extended on request.
  • Municipality requests network operators to comment on incompleteness and errors in the presentation of actual coverage.

3. publication of the results of the market exploration

  • Municipality publishes the result of the market exploration in accordance with the sample document.

4. publication of announcement of selection procedure

4a. in the economic viability gap model:

  • Municipality publishes the announcement of the selection procedure, municipality provides information here, among other things, on the minimum requirements for the addresses to be supplied.
  • With only one or two bidders in the selection procedure: Municipality commissions Bavarian Broadband Center to check the plausibility of the bids.

4b. in the operator model:

  • Municipality publishes the announcement for the selection of a network operator (tenant) and specifies possible connection points.
  • With only one or two bidders in the network operator selection procedure: Municipality commissions Bavarian Broadband Center to check the plausibility of the bids.
  • Municipality concludes cooperation agreement with network operator. (Note: contract only becomes effective once the grant notice has been issued).
  • Municipality plans the passive infrastructure to be set up in consultation with the future lessee (tender for planning services may be required).
  • Municipality publishes the invitation to tender for the construction of the passive infrastructure.

5. publication of the result of the selection procedure

  • Municipality publishes the planned selection decision of the future network operators.

6. procedure with the district government

  • Municipality submits the funding application to the locally responsible district government.
  • After reviewing the documents, the district government issues the grant notification.

7. cooperation agreement or commissioning of construction

7a. in the economic viability gap model:

  • Municipality concludes the cooperation agreement with the selected network operator.

7b. in the operator model:

  • Municipality commissions the construction of the passive network infrastructure. (Note: For the cooperation agreement, see 4b.)

8. publication of the funding profile

  • Municipality presents the planned infrastructure in a funding profile.

9. publication of the final project description

  • Municipality documents the established infrastructure in a final project description.
  • The funding profile and final project description are published on the central online portal for 10 years.

Bavarian gigabit funding runs until the end of 2025. Applications for funding under the Bavarian Gigabit Directive (BayGibitR) can be submitted until September 30, 2025. Applications for funding under the Co-financing Gigabit Directive (KofGibitR) can be submitted until June 30, 2023.

Status: 06.05.2025
Editorial responsibility Bayerisches Staatsministerium der Finanzen und für Heimat
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