The gap between advertised speeds and actual speeds for gigabit services remains wide, although this isn’t to say no progress has been made. Several countries on the continent are making headway in offering high-speed broadband to more members of the public. To understand the recipe for these successes, looking at infrastructure investment and the broadband technology used in a rollout is key. Broader factors such as policy, consumer needs and take-up rates also have a significant impact on progress and can’t be ignored if we’re to get to the root of, and learn from, these success stories.
Gigabit society progress
The goals of the European Commission’s Digital Decade strategy are ambitious, and interim targets, such as delivering 100 Mbps services by 2025, are fast approaching. Speedtest data indicates promising progress in offering high-speed broadband and infrastructure development. According to the Broadband Coverage in Europe 2022 study, 86.6% of EU households are currently within 100 Mbps+ coverage, meaning they have access to broadband services capable of providing at least 100 Mbps download speeds. Although available networks do not automatically result in real penetration or adoption rates, it is a vital first step. However, there is a significant gap between what households subscribe to and what users actually experience, meaning there is still considerable work to be done to achieve universal coverage.
Drilling into the type and method of broadband rollouts reveals differences in associated download and upload speeds. Denmark, Spain, France, and Romania have notably fast median download speeds, primarily due to their fibre-to-the-premise (FTTP) infrastructure investments. Comparatively, the UK and Germany, which have traditionally been more reliant on copper-based connectivity, have lower median upload speeds and a wider gap between upload and download speeds.
Rollout methods aside, we see mixed progress in meeting targets on consumer adoption and uptake to reach the 2030 levels of connectivity envisioned by the European Commission. 97.7% of Romanian households can access fibre, driven largely by government-backed fixed infrastructure projects and targeted rollout efforts focused on rural areas. Although such progress is promising, the picture remains mixed across the rest of Europe. Two major European nations still have less than 50% of households in areas with FTTP; the UK with 42.9% and Germany with just 21.3%. Efforts to bring about universal coverage always need to start with widening access to fibre, or other technologies such as DOCSIS 4.0.
European policy and priorities
It’s important to note that EU member states and their local broadband markets aren’t being left to their own devices to meet the 2030 targets. The European Commission is aiding efforts with three key measures: the draft Gigabit Recommendation, the proposed Gigabit Infrastructure Act (GIA) and a plan for the Digital Networks Act (DNA). Although broad industry support exists for the Gigabit Infrastructure Act (GIA), the draft Gigabit Recommendation has proven to be controversial. A joint statement by ECTA, ETNO, GIGAEurope and GSMA earlier this year raised concerns about the EC’s draft general approach to the GIA.
The main concern for these market stakeholders is that the act infringes on the provisions and principles of the European Electronic Communications Code (EECC). It does so by restricting the discretionary powers of NRAs to impose price control obligations in favour of wholesale price flexibility. This in turn discourages regulated wholesale price control in low-populated areas and promotes wholesale price increases in the context of copper switch-off.
Elsewhere, the Digital Networks Act (DNA) is idealistic in its current state and unlikely to result in the urgent practical support for the industry many operators had hoped to receive from the Commission.
What challenges remain?
In countries where fibre rollouts are near completion, the focus has shifted to intervention to boost fibre uptake and translate homes passed into actual subscriptions.
According to Omdia, Sweden leads in FTTP adoption with an 80.1% consumer take-up rate. This is due largely to its planned copper switch-off, with its largest network operator, Telia, on track to switch off its copper networks by the end of 2026. Sweden is closely followed by Spain, Norway, and France, which boast take-up rates above 70%. Ireland, the UK and Italy lag significantly behind with 30.5%, 20.5% and 18.1% take-up rates, respectively.
Regions with lower take-up rates should consider what consumers need and want when it comes to connectivity. Applying a customer-centric mindset will help governments and ISPs understand why it’s hard to convince some consumers to make the switch to full fibre. Even in countries with high take-up rates, layers of hesitancy exist. A survey conducted by Orangein rural areas of France revealed that 42% found their current internet sufficient, while 37% said incentives would encourage them to upgrade.
The reality is that 100 Mbps coverage more than satisfies the connectivity needs of most consumers today bar those which engage in online gaming or where multiple users within a household access high-definition video content.
Looking ahead
Regulatory support and investments must continue to keep Europe on track to achieve gigabit connectivity for everyone by 2030, whilst operators should focus on take-up rates and understanding what consumers want and need to improve their connectivity experience. To tackle these challenges, operators must seek to understand consumer behaviour, looking to areas where fibre take-up is ahead of the curve, and using those lessons to help to enable them more effectively promote fibre’s benefits in areas of low adoption.
