Europe Telecom Insider/Vol. 3, No 4, Edition 12 - Public-Private Partnerships Will Ensure Fiber Future in Europe

The European Commission’s Europe 2020 Strategy aims to bring broadband access to all by 2013, with partnerships between telecom and non-telecom players expected to drive nationwide broadband adoption across Europe, according to a new report.

Public-Private Partnerships Will Ensure Fiber Future in Europe asks how European governments can future-proof their networks and make the goal of universal broadband access within their national borders a reality. To answer the question, Pyramid Research examines several methods adopted by various European governments and then distills some best practices.

“In line with the Europe 2020 agenda, EU27 countries are set to increase coverage and broadband access speeds, and through ICT stimulate the region’s economic development,” says Pyramid Research Analyst, Sylwia Boguszewska. There is €1.8bn available, and several new EU members are using these funds to extend broadband networks to rural/underserved areas.

Partnerships between telecom and non-telecom players are the best way to ensure nationwide broadband adoption across Europe. For this reason, Pyramid Research expects this model to be the most adopted across the region over the next couple of years. “National broadband plans play an important role in broadband development because they set targets for a country and allocate funds for network deployments, and aid in the deployment of networks in rural areas,” Boguszewska adds.

Key findings

- In line with the Europe 2020 agenda, EU27 countries are set to increase coverage and broadband access speeds, and through ICT stimulate the region’s economic development. There is €1.8bn available, and a number of new EU members are using these funds to extend broadband networks to rural/underserved areas.

- National broadband plans are a necessity. Given the economic disincentives for deployment in certain areas, it is important for regulators to step in and provide invectives and look for best ways to ensure more complete population coverage.

- The incumbent operators tend to be the latecomers to fiber because they fear that after investing in upgrading their network, they will have to open it to alternative operators. This is one of the main reasons behind incumbents sticking with DSL. In countries where regulators gave the incumbent a regulatory break, this in fact stimulated the fiber proliferation.

- Alternative operators find in fiber a competitive advantage to cable companies and try to partner in order to keep the capex down and hasten ROI. Also, in countries where LLU has been slow, rolling out their own infrastructure brings savings.

- The open-access model works best if there is a strong public-private partnership. In the case of a city, housing associations are the key to success.

- Municipalities and utilities play an important role and have been particularly active in the Nordic markets. SHOW LESS READ MORE >

INTRODUCTION
EUROPE PLANS FOR A DIGITAL FUTURE
A. Both incumbent and alternative operators need support from the government to generate ROI in the quest to go “all fiber”
B. Partnerships between various public and private sector partners are a good way to encourage nationwide coverage
C. The open model works best with transparent pricing and non-discriminatory access to the network
MARKET DETAIL
FINLAND
NETHERLANDS — AMSTERDAM CITYNET LITHUANIA
CONCLUSIONS
Key findings
Recommendations

Table of exhibits
Exhibit 1: Broadband (fixed and mobile) subscriber uptake, Europe, 2008-2016
Exhibit 2: FTTH/B subscribers, Europe and AP, 2008-2011
Exhibit 3: EAFDR recovery package distributed among member states, 2010
Exhibit 4: National broadband plan: Targets and time horizon, 2010-2025
Exhibit 5: A selection of national broadband plans across European markets
Exhibit 6: RCS&RDS’s cables in Bucharest (top) and Verizon’s FiOS (bottom) ? examples of relaxed telecom regulation in terms of fiber deployment
Exhibit 7: Lithuania and Norway broadband subscriptions by speed, Q2 2011
Exhibit 8: Capex investment and capex per homes passed
Exhibit 9: Examples of the most successful partnership models
Exhibit 10: Examples of partnerships involving incumbent telcos
Exhibit 11: Potential cost saving with the “fibre suisse” deployment model
Exhibit 12: Examples of open access networks, Europe
Exhibit 13: KPN addressable market expansion plans
Exhibit 14: Finland universal access
Exhibit 15: Fiber rollout process in the Netherlands
Exhibit 16: Lithuania RAIN fiber optic network coverage map, 2011

In order to future-proof their networks by embracing NGN, almost every European country has a national broadband plan in place. The goal is to increase broadband penetration and speeds to ensure that their citizens can take advantage of the social and economic benefits of a connected future. A special focus is attached to rural and underserved areas, with a goal of 100% of population coverage with basic broadband. At the same time, vast resources are allocated to fulfilling the Europe 2020 agenda ? including, in many countries, funding for rural broadband expansion via the EU Rural Development Policy (EAFDR).

Pyramid Research believes that partnerships between telecom and non-telecom players are the best way to ensure nationwide broadband adoption across Europe. For this reason, we expect this model to be the most adopted across the region over the next couple of years. National broadband plans play an important role in broadband development because they set targets for a country and allocate funds for network deployments, and aid in the deployment of networks in rural areas.

In this report, we ask how European governments can future-proof their networks and make the goal of universal broadband access within their national borders a reality. To answer the question, we examine a number of methods adopted by various European governments and then distill some best practices.Pyramid Research believes that partnerships between telecom and non-telecom players are the best way to ensure nationwide broadband adoption across Europe. For this reason, we expect this model to be the most adopted across the region over the next couple of years. National broadband plans play an important role in broadband development because they set targets for a country and allocate funds for network deployments, and aid in the deployment of networks in rural areas.

- BBned
- Blizznet
- Fastweb
- France Telecom
- Free
- KPN
- Lyse
- Optimus
- Portugal Telecom
- RCS&RDS
- Reggefiber
- Swisscom
- T2
- Telekom Slovenije
- Telekomunikacja Polska
- Telkom Austria
- TEO
- Verizon
- Vodafone