Rabobank investment fund paralyzes fiber optic initiatives

In total, the Netherlands has 137 citizens' initiatives to install fiber optics in rural areas. So far, only five cooperatives have succeeded in doing so. Many initiatives rely on financial support from the Rabobank investment fund CIF. However, he pulls his hands off the projects, resulting in panic.

The Netherlands has approximately 300.000 households and companies in rural areas that are not connected to an internet connection with a download speed of at least 30 megabits per second. With an ever-growing need for fast internet, this is a requirement. Telecom companies skip the countryside. The construction costs do not outweigh the benefits. Citizens' initiatives try to take matters into their own hands. You will find them especially in Drenthe, Overijssel, Gelderland and North Brabant. Of the 137 cooperatives (100 serious ones), only five managed to actually set up a network. They all run into the same problem: Installing fiberglass is expensive.

One and a half years ago, Rabobank came to the rescue. The Commincation Infrastructure Fund (CIF) announced that it would encourage the installation of fiber in rural areas. To this end, the fund has attracted money from pension funds, among others. However, after connecting the first 10.000 addresses in Twente, the fund has found that too little return is being generated, writes the FD. “It's a very difficult thing to calculate. Citizens and companies must take into account substantially higher connection costs," a CIF spokesperson said to the newspaper. More clarity is expected at the end of February.

How does the Rabobank fund CIF work?

• Areas divided into clusters of 3.000 to 4.000 connections.
• 96% of the area gets fiber optic for 9,95 euros connection costs per month. 50% participation required.
• 4% are not eligible and have to pay more for a connection.
• New offer 12,50 euros connection costs per month or 1.600 euros commutation fee. 50% participation remains.
• Connecting afterwards costs 995 euros.
• Connection costs are separate from provider costs.

The CIF has been too optimistic with its calculation, it announced in December. The distance between the connections is too great and there are many natural barriers, which increase costs: railway lines, trees and waterways. CIF is working on a new offering, which is currently under market research. The results will be announced at the end of February. A number of municipalities have already received a new offer from CIF. The costs increase from 9,95 to 12,50 connection costs per month.

The decision of CIF hits hard for the various citizens' initiatives. It is their only lifeline to be able to realize a fiber optic network. Part of the problem lies with the cooperatives themselves. That is the opinion of Dirk Strijker, professor of Rural Development, and Koen Salemink. 'Many cooperatives think they can play for a telecom company for a while,' says Salemink. 'You quickly need 3.000 million euros for 9 connections. All the demands and negotiations involved are far beyond the cap of volunteers. The government cannot demand that private individuals act as telecom companies.'

The municipalities are now only thinking about the center. That's where most of the voices are, they admit. The outside area can figure it out for itself. And hope quickly fades when sufficient funding is not available.

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