This study aims to support the European Commission in scoping the required budget needed to meet the actions identified under CEF Digital as well as aiding preparations for the implementation of the forthcoming CEF Regulation, by identifying key areas of market failure and potential priorities and structural models for funding. Our analysis suggests that funding well in excess of €3bln would be needed to address gaps that are expected to persist in fixed and mobile VHC connectivity across the EU over the coming decade. Based on our analysis of the degree of market failure and potential spill-over effects for the single market. Use of blending calls could help to leverage available private funds to achieve maximum benefits, enabling connectivity to nearly 6m households and more than 50,000 schools, hospitals and other socio-economic drivers. Remaining funds would be split between funding for local WIFI and 5G initiatives, connectivity for high performance computing, cloud connectivity and submarine cables.

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