Looking to take on the sticky issues around building an inclusive gigabit society, the European Telecommunications Network Operators Association released a new report commissioned from the Boston Consulting Group. It focuses on how European telcos can contribute to achieving Europe’s connectivity issues in a way that encompasses “as many citizens as possible in the shortest period of time and with the best technology,” ETNO states. The association adds that “those who have the lowest speeds today should not be the ones who benefit from the gigabit society the last.”
The BCG research concludes that connecting all households to a Very High Capacity (VHC) network by 2025 could prove possible − with healthy 5G coverage by the same year thrown into the mix. The technology mashup and an increase in the annual network investment, financed by improved returns, by demand stimulation measures, and by subsidies for challenging areas also would be necessary.
Widespread gigabit rollouts in Europe will require both fiber-to-the-home (FTTH) and advanced copper-based networks, as well as hybrid fiber coax networks, the report says. And it underlines that operators will need to push 5G deployments especially in urban areas, facilitated by fiber-deep technologies. Regulation will of course play a fundamental role, so the BCG report calls for a simplified and streamlined access regulation, forward-looking spectrum policies, and efficient competition policy.
“The European Commission has recognized the crucial role of networks and has set ambitious connectivity goals. Mobilizing the massive investment required is possible, but it depends on flexible regulatory and technological choices, tailored to local conditions,” BCG Senior Partner and Managing Director Wolfgang Bock, observes.
The report estimates that the required investment to fund the gigabit society vision is a whopping €660 billion if delivered via FTTH only. This includes €360 billion to enable FTTH broadband for all European households, €200 billion in 5G radio access networks as well as €100 billion for low-latency proximity data centers.
Where will all those euros come from and how long will it take? ETNO reports that this effort is expected to be funded mainly by private investment, even though at the current pace it would take up to 30 years. The association adds that with the technology-inclusive approach proposed by the BCG report, the objective can be achieved by 2025, but this requires both an investment-centric regulatory environment and improved returns on investment, to allow an additional annual investment of €10 billion.
