LUXEMBOURG PUBLIC INVESTMENT IN IT INFRASTRUCTURE

UNCLAS LUXEMBOURG 000091


DEPT FOR EEB/CIP/BA TIMOTHY FINTON
FCC FOR ROBERT TANNER
DOC/ITA/OTEC FOR ANDREW BENNETT

E.O. 12958: N/A
TAGS: ECPS ECON LU
SUBJECT: LUXEMBOURG PUBLIC INVESTMENT IN IT INFRASTRUCTURE

REF: STATE 27310


1. In response to reftel, Post has collected the following
information on GoL's public investment in Luxembourg's IT
infrastructure.


2. As part of an overall stimulus package announced in
February 2009, Economy Minister Jeannot Krecke and
Communications Minister Jean-Louis Schiltz highlighted
additional public investment in Luxembourg's IT
infrastructure, including expansion of LuxConnect's broadband
deployment. P&T Luxembourg, the national post and
telecommunications company, announced an investment increase
from 128 million to 202 million euros. A second public
enterprise, LuxConnect, announced a 100 million euro
investment, after having previously indicated it had no plans
for further investment in 2009.


3. The GoL identified several objectives of the increased
investment. In addition to creating jobs and stimulating the
economy, the investments will expand broadband coverage and
bandwidth to underserved areas of Luxembourg. The government
expects the investment to open up Luxembourg's
telecommunications market to more competition. Improvements
to the infrastructure will include faster connection speeds,
an expanded fiber-optic cable network, two additional data
centers, and renovated P&T offices.


WAGNER