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Mobile communications; application for funding

The aim of the Bavarian mobile communications support program is to close mobile communications gaps in regions that are not being developed by the market economy.

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Regierung der Oberpfalz - Sachgebiet 27 - Mobilfunk, Digitalbonus

Regierung der Oberpfalz

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Emmeramsplatz 8
93047 Regensburg

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93039 Regensburg

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Procedure details

Applicability

The mobile communications funding guideline expired on December 31, 2022. The Bavarian Ministry of Economic Affairs intended to continue the successful program. This would have required approval from the European Commission. Due to the amended broadband guidelines of the European Commission, the Commission rejected the pre-notification procedure in July 2024.

Purpose

The purpose of the funding is to improve mobility through the successive expansion of mobile broadband coverage by improving coverage in the Free State of Bavaria in regions where the market does not provide coverage.

The funding enables the development of mobile broadband including an improvement in emergency call options in regions in which there is currently no coverage with mobile voice communications and in which there are no plans for commercial expansion in the next three years after the start of the market exploration procedure (development areas).

Object

Solutions using the latest LTE or 5G technology are funded. The LTE coverage in the funded target area must ensure transmission rates of at least 50 Mbit/s per antenna sector and guarantee a latency time of less than 150 milliseconds. Technical wireless solutions that do not allow user mobility (in particular WLAN) are excluded from funding.

  • Rental model: Funding is provided for expenses incurred by the local authority for the initial construction of passive infrastructure for mobile communications equipment for use by network operators for the operation of a mobile communications network. Implementation is carried out according to the choice of the local authority in the construction contract variant or the construction concession variant.
    • In the construction contract variant, the local authority carries out the construction of the passive infrastructure itself on the basis of planning data from the interested network operators or commissions them to do so. The local authority is the lessor of the passive infrastructure.
    • In the construction concession variant, the local authority invites tenders for the construction and operation of the passive infrastructure as a construction concession on the basis of a search circle. The concessionaire becomes the lessor of the passive infrastructure.
  • BOS model: Funding is provided for expenses incurred by network operators for measures carried out by themselves or by third parties to upgrade (or replace or build new) BOS masts belonging to the Free State of Bavaria in order to enable network operators to share use.

Data connection, payment of electricity costs, equipment with transmission technology and maintenance of the transmission technology are carried out by the leasing network operators themselves.

Beneficiaries

The recipients of funding for the rental model are the municipalities and their associations in the legal form of a legal entity under public law in the Free State of Bavaria and, in the case of shared use of BOS masts, the network operators.

Eligible costs

Rental model: All necessary expenses incurred by the local authority for the construction of the passive infrastructure are eligible for funding. Passive infrastructure includes, in particular, masts, foundations, power connections, empty conduits and access routes. In particular, antenna systems and other active infrastructure as well as land acquisition costs including land lease are not eligible for funding.

BOS model: The expenses for upgrading the passive infrastructure of a site (without transmission technology and data connection) for mobile radio equipment are eligible for funding. If the expenditure includes a VAT component, this is only eligible for funding if no input tax deduction can be claimed.

Type and scope of funding

The grant is awarded as project funding by way of pro rata financing as a non-repayable subsidy based on the eligible expenditure (expenditure basis).

Rental model: The funding rate is generally up to 80 percent of the eligible costs, and up to 90 percent in areas with a special need for action. Each project can be funded with up to 500,000 euros; if several municipalities work together, the maximum funding is increased by 50,000 euros for each of the municipalities involved.

BOS model: The funding rate here is generally up to 80 percent. Funding is also limited to 500,000 euros here.

  • Funding must lead to a significant improvement in mobile broadband coverage. A significant improvement is deemed to exist if mobile broadband (current LTE standard or 5G) is expanded for the first time in an area not previously covered by mobile voice communications.
  • The principle of technology neutrality applies to the LTE or 5G technologies used for the expansion.
  • Multiple grants to cover the same area are excluded.
  • Operation must be guaranteed for at least seven years (earmarking period).
  • Eligible areas are development areas in accordance with No. 1.2.2 of the funding guideline. Overexposure to areas in which mobile broadband coverage already exists caused by funded mobile communications equipment should be kept to a minimum as far as possible.
  • Subsidized mobile communications equipment may not be used as proof of compliance with coverage requirements. The network operator must confirm this in writing. This declaration must be submitted to the Federal Network Agency by the approval authority together with documentation of the current actual status and the planned expansion status after commissioning of the transmitter station in accordance with its standards.
  • The use of the passive infrastructure constructed or upgraded as part of the funding must be made possible for the interested network operators on fair and reasonable terms.
  • Grants may only be approved for projects that have not yet been started. In principle, the conclusion of a contract attributable to the execution of the project is to be regarded as the start of the project. Preparatory work and procedures that are necessary for submitting the application, such as the expression of interest by a local authority or a mobile communications company, are not considered to be the start of the project.

  • Search circles of the mobile communications companies from the market investigation procedure

  • As a municipality, you express your interest to the mobile communications center at the government of the Upper Palatinate, whereupon it initiates a market exploration.
  • Once you have been informed of the result of the market exploration (expansion plans, interest of network operators), you can submit the application online. Applications for funding can no longer be submitted.
  • The mobile communications center at the government of the Upper Palatinate will review your application and issue a preliminary decision. You can then begin with the implementation.
  • Once the site has been set up, it will be put into operation by the network operators renting it.
  • After implementation, you submit the proof of use to the mobile communications center.
  • You will receive the grant once the proof of use has been checked and the site has been put into operation.

Status: 26.05.2025
Editorially responsible for prodecure description: Bayerisches Staatsministerium für Wirtschaft, Landesentwicklung und Energie
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