Broadband in rural areas: CHF 730 million

Context

In brief

• The Federal Council is investing 730 million CHF for broadband in rural areas
• LSBL program of 8 years (2030-2037) with equal cost-sharing by cantons
• At least 1 gigabit/second download: the national minimum standard

Key facts

• What: Federal broadband support program (LSBL) for rural residential and commercial buildings
• When: Messages transmitted to Parliament; operational program 2030-2037
• Where: Swiss rural areas (municipalities on a voluntary basis, with cantonal participation required)
• Who: Federal Council, DATEC (Albert Rösti, head of department)
• Amount: 730 million CHF total (365 million Confederation, 365 million Cantons)
• Speed: at least 1 gigabit per second in download

The Federal Council has decided to bridge the infrastructure gap in Swiss rural areas through a federal broadband support program. An investment of 730 million francs will be dedicated to expanding networks, with a stated objective: to guarantee fast fixed internet connections to all residential and commercial buildings, even where private providers do not find economic convenience. Albert Rösti, head of the Federal Department of Communications (DATEC), announced the details.

The program, provisionally named Law on Broadband Support (LSBL), provides equally distributed financing: the Confederation covers 365 million francs through a commitment credit for the years 2030-2037, while the Cantons pay the same amount. The constraint is clear: no municipality can receive federal funds without the commitment to co-financing from the relevant canton.

Optical fiber infrastructure, with alternatives

The priority remains optical fiber. Where expansion costs prove excessive, the program also accepts connections via terrestrial radio communications. The speed standard is unequivocal: at least one gigabit per second in download. The Federal Council has clarified that federal contributions will be limited to funds actually necessary, avoiding project over-dimensioning. The municipalities concerned will have to submit a formal application.

The temporal structure is defined: the program lasts eight years (2030-2037); the Federal Council may extend it only once for a maximum of three additional years if resources remain unspent.

Financing from mobile concessions

An important novelty concerns the source of federal financing. The 365 million will come from taxes derived from future mobile telephony concessions. It will therefore not be a diversion of ordinary budget, but income dedicated to the telecommunications sector.

Operational details

How the mechanism works: the role of the Cantons

The system of access to LSBL funds has a clear but binding structure. The first step is the cantonal decision: each Canton decides whether to join the program, participation remains voluntary. However, those who choose not to participate leave their municipalities without access to federal funding. It is a powerful incentive: to receive even a single federal franc, the Canton has no alternative but to co-finance to the established extent (50% of the total amount of the project).

This structure creates a clear procedural hierarchy: the Canton decides to join, undertakes to pay 50% of the total funding, the Municipality applies for access to funds, the Confederation disburses its 50% only if the Canton has entered the program. The practical consequence is that the Municipalities of non-adhering Cantons remain completely excluded. A binding cantonal decision therefore affects all the underlying administrative levels.

Design priority: fiber vs. radiocommunication

The choice of infrastructure is not neutral. Fiber optics remains the gold standard: superior speed, stability, prospects for future upgrades. But it's also expensive. The government has recognised this reality and inserted a flexibility clause: where the expansion of fibre entails very high costs, alternatives can be used via terrestrial radiocommunication.

The practical question remains open: how

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

How to Access Funding: Step by Step

If your municipality is located in a rural area and wishes to benefit from the LSBL program, the process is straightforward but requires coordination between administrative levels.

First step: verification of cantonal status. Contact the competent cantonal administration (Department or Office of Energy, Infrastructure or Telecommunications, depending on the canton) and ask if the Canton has joined the LSBL program. If the answer is negative, your municipality does not have access to federal funds. If positive, proceed to the next step.

Second step: territory evaluation. The program finances residential and commercial buildings in areas where private providers do not find economic viability. If your area is already covered by private operators with adequate speed (≥1 gigabit/s), the project may not be eligible. If fast connections are lacking, continue.

Third step: application submission. The municipality formally submits an application to the competent cantonal entity. The request must indicate: territory to be covered, target buildings, proposed infrastructure (fiber optic vs. radio communication), cost estimate and implementation timeline.

Fourth step: federal evaluation. The Confederation evaluates whether the project meets technical standards (minimum speed 1 gigabit/s, reasonable costs, territory effectively lacking bandwidth). If approved, the municipality receives the federal share (50%) and the Canton receives its share (50%).

Fifth step: implementation. The municipality or designated operator implements the infrastructure within the approved timeline.

Funding and Administrative Responsibility

The money is not an unconditional subsidy. Federal contributions are limited to the minimum necessary funds: the government wants to avoid project oversizing or inflated costs. A technical-economic analysis will be central to evaluating the application. The Canton has dual responsibility: it decides whether to participate (political choice) and co-finances 50% (fiscal responsibility). If a Canton decides not to participate, its municipalities are completely excluded without exceptions.

Critical Deadlines and Planning

The program begins in 2030 and covers eight years (until 2037). If resources remain unused, an extension until 2040 is possible. For municipalities, this means: if you wish to access the funding, you must submit an application and obtain approval by 2037 (or until 2040 if the program is effectively extended). The window is broad, but not endless. Rural areas that delay planning risk permanently losing the opportunity.

To assess the economic impact of the project at the municipal level — for example, the exact amount of local investment required for 50% co-financing — you can use the calculators for infrastructure and budget. To compare specific costs between different technologies (fiber optic, radio communication), contact your competent cantonal Department directly or local network operators. The decision to join the LSBL program remains in the hands of the Cantons: if yours has already joined, the next step is to contact your municipality to evaluate concrete projects.

Source: tio.ch