A new TOP (Tax On Pylons) agreement has just been concluded between telecom operators and Wallonia. This agreement was approved by the Walloon Government, on a proposal from the Minister for Digitalisation, Willy BORSUS, and the Minister for Local Authorities, Christophe COLLIGNON.
The Walloon Government has just approved a new agreement with telecom operators to benefit the digital transition of local authorities and improve mobile coverage across the territory. This is the third Tax On Pylons agreement.
As a reminder, the previous agreement dates from 16 December 2020. This initiative was extended at the time to include the digitalisation of local authorities, implemented through a call-for-projects mechanism.
Following this agreement, it is clear that the excellent climate of trust and cooperation between the Walloon Region and the operators has led to significant results. Mobile coverage across the territory has been considerably improved, as has the digitalisation of local authorities.
Given the benefits observed following the two previous agreements, which generated an investment of €12.3 million and enabled the funding of 168 digitalisation projects for local authorities amounting to around €10 million, the Walloon Government has concluded a new agreement with telecom operators aimed at maintaining this fruitful collaboration and extending its beneficial effects on connectivity and digitalisation in Wallonia.
The agreement covers a three-year period, from 2024 to 2026 inclusive, with the possibility of a one-year extension at the end of the agreement on a proposal from one of the parties involved.
Under this agreement, total investments of €15 million per year will be allocated to insufficiently connected areas, amounting to €45 million in total, with the possibility of reaching €60 million if extended until 2027.
Regarding the digitalisation of local authorities, a financial contribution of €6 million per year will be paid, increased by €2.5 million in 2024 to cover 2023. This amounts to a total of €20.5 million, or €26.5 million if extended until 2027. These amounts will be allocated to a fund dedicated to developing the digitalisation of local authorities, including digital tools supporting the ecological transition, particularly in the areas of soft mobility and energy transition.
To secure this component, a guarantee mechanism will be put in place for the Walloon Region. It provides for a minimum payment equal to 50% of the amount agreed for 2023, followed by a minimum payment of €2.5 million thereafter.
Regarding investments, a hybrid approach will be favoured, reserving 50% of investments for wired technologies (fibre optic, coaxial), subject to the operators' network infrastructure allowing for this.
Finally, a roadmap will be drawn up detailing the planned investments, ensuring they target areas with territorial shortfalls, in addition to initiatives already included in the operators' strategic plans.
In return, Wallonia commits to maintaining the abolition of regional taxes and its recommendation to provinces and municipalities not to levy taxes on masts, pylons and antennas for the duration of the agreement.
The third version of the TOP agreement stands out for its enhanced ambition, reflected in an extended duration and a significant increase in the amounts involved, both for investments and for the digitalisation of local authorities.
| TOP2 | TOP3 | |
| Duration | 2 years | 3 years, renewable |
| Investments | €5.5 million per year | €15 million per year |
| Financial contribution | €2.5 million per year | €6 million per year |
Willy BORSUS: “ This new agreement represents a significant step forward for Wallonia, benefiting our citizens, particularly in rural areas. Compared to the previous agreement, which covered a two-year period with a payment of €5 million and investments of €11 million, this one runs for three years (2024-2026), with the possibility of a further one-year extension. With substantially increased amounts, payments ranging between €20.5 and €26.5 million, including a guaranteed minimum of €8.75 million, and projected investments between €45 and €60 million. As a result, the estimated economic impact for the Walloon Region is between €65.5 and €86.5 million. I would also add that this momentum is essential so that our public services, our businesses and our citizens can benefit from ever more efficient connectivity across the whole of Walloon territory.”
Christophe COLLIGNON: “In Wallonia, it is essential to ensure efficient connectivity and digital agility across the territory. This agreement marks a crucial step in guaranteeing all citizens, wherever they are, the benefits of digital connectivity. This is an essential pillar of our modern society. Our commitment aims at a comprehensive and ambitious transition. With substantial resources over a longer period, this will benefit both citizens and local authorities. I would like once again to express my gratitude for the strong mobilisation of local authorities.”
Clarisse RAMAKERS, Agoria: “This agreement is a genuine contract for the future between telecom operators and the Walloon Government. The significant investments that telecom operators will commit to once the agreement is signed will accelerate the digitalisation of the municipalities and provinces most affected by network coverage issues today, thereby improving the daily lives of citizens in the most rural areas. In return, the Walloon Government commits to encouraging municipalities and provinces not to tax mobile infrastructure, in order to support these investments in the most sensitive areas. This is therefore a win-win situation for all parties.”