• Switzerland has proposed up to CHF730 million to improve broadband in rural areas that are unlikely to attract commercial investment
  • The federal government would pay half the cost of each supported project, but only if the canton agrees to provide the other half

The Fact

Switzerland's Federal Council has sent parliament a proposal for up to CHF730 million in public funding to improve broadband in sparsely populated areas. The programme would support fibre and wireless connections in places where operators are unlikely to build commercially. The federal government would provide up to CHF365 million between 2030 and 2037, using revenue from future mobile-radio licences. Cantons would provide the same amount.

Cantons and municipalities would be free to decide whether they want to take part. However, federal money would only be available when the relevant canton also agrees to contribute. Municipalities would then apply for support for individual projects. There would also be a limit on how much public money can be spent on each connection. If fibre costs more than that limit, a wireless link could be used instead. A municipality that still wants fibre could choose to pay the extra cost itself. The proposal still needs parliamentary approval before the programme can begin.

The assessment

The CHF730 million figure sounds like a national broadband fund, but the money will not automatically reach every rural community. Each project needs local support, and a canton must agree to pay half the subsidy before federal funding becomes available.

Cost will also affect what kind of connection a community receives. Fibre may be the preferred option, but the programme will not pay any price to install it. In the most expensive locations, a wireless connection could be chosen instead unless the municipality is willing to cover the difference.

For BTW readers, the important question is where cantons decide to take part and what they are willing to fund. Those local choices will determine which communities get new connections, whether they receive fibre or wireless service, and how much of the CHF730 million programme is eventually used.

What to watch

Watch how parliament handles the bill and where the final subsidy limit is set. After that, cantonal participation will matter most. The first approved projects should show where fibre fits within the funding rules and where communities instead choose wireless connections or pay more themselves.