FTTH: A Cornerstone for Europe's Digital Ambitions

Europe's ambitious drive toward a fully connected digital landscape is anchored by the rapid deployment of FTTH networks. As outlined by the FTTH Council Europe's June 2023 guide, these networks are not just technological advancements but the very bedrock upon which the continent's digital and sustainable future is built.

The European Union, through initiatives like the Digital Decade targets, underscores the critical role of sustainable digital infrastructure. As part of this vision, the aim is to have gigabit connectivity for everyone by 2030. This goal is dependent on the widespread deployment of FTTH networks, which are poised to support the digitalisation of businesses, public services, and the cultivation of the digital literacy.

The FTTH Council Europe's Mission

The FTTH Council Europe serves as a catalyst for full-fibre connectivity across the continent. Its mission is to advance ubiquitous full fibre-based connectivity to the whole of Europe, with the vision that fibre connectivity will transform and enhance the way we live, do business and interact, connecting everyone and everything, everywhere. The Council's dedication ensures Europe's position as a leader in the global digital economy and champions universal access to high-speed connectivity for all citizens.

For this reason, we crafted the guide “FTTH Policy & Regulation Essentials”, which is designed to be a useful tool for companies, policymakers, investors, and stakeholders interested in the European FTTH sector. It offers an in-depth understanding of the policy and regulation frameworks crucial for FTTH network deployment in Europe. Focusing predominantly on the European Union, the guide also explores relevant aspects in non-EU European markets like the United Kingdom and Switzerland. Moreover, regular updates  will be provided to ensure it reflects the latest changes in the EU's regulatory environment for FTTH deployment.

European Commission's Digital Decade targets

The European Commission's Digital Decade targets, unveiled in March 2021, are a cornerstone of Europe's strategy to become a globally leading digital economy by 2030. These ambitious targets are structured around four key pillars: digital infrastructure, digital transformation of businesses, digitalisation of public services, and the development of digital skills and literacy.

A prominent goal is the establishment of sustainable digital infrastructure, with a specific emphasis on rolling out gigabit connectivity to all European households, and 5G coverage in all populated areas. The aim is to significantly increase the number of SMEs adopting digital technologies and to double the number of unicorns in Europe.

Regarding public services, the targets include digitalising them to improve efficiency and accessibility, fostering a seamless digital interaction between citizens and governments. Finally, the initiative stresses the importance of digital education and training, aiming for at least 80% of the population to have basic digital skills.

The Evolution of Telecom Policies in Europe

The transformation of Europe's telecommunications sector from state-owned monopolies to liberalised markets has been a remarkable journey. The evolution of telecom policies in Europe reflects a significant shift from state-owned monopolies to a competitive, liberalised market, reshaping the continent's digital landscape.

The true transformation began in the late 1980s, driven by economic and political motivations to dismantle national monopolies and foster an open-market environment. Key milestones in this evolution include the series of liberalisation directives in the 1990s, which challenged the monopolistic structures by promoting competition and opening markets to new entrants.

The 1996 full competition directive was particularly pivotal, liberalizing core services like fixed telephony. Subsequent frameworks, notably the Second Framework in 2002 and the New Regulatory Framework in 2009, introduced comprehensive regulatory changes emphasizing market analysis, significant market power assessments, and imposing remedies to ensure fair competition.

These policy shifts not only democratised the telecom sector, spurring innovation, and better consumer services, but also laid the groundwork for the widespread adoption of advanced technologies crucial for Europe's current and future digital ambitions.

The 2018 EU Electronic Communications Code

The 2018 EU Electronic Communications Code (EECC), which came into effect in December 2020, marked a significant shift in Europe’s approach to telecommunications. The EECC was a comprehensive legislation initiative designed to foster investment in very high-capacity networks (VHCN), including FTTH, as it promotes co-investment among operators, simplifies administrative procedures, and encourages the development of wholesale-only network operators.

Key aspects of the EECC include:

• Broadband Deployment Targets: The Code sets ambitious targets for broadband deployment. It mandates EU member states to ensure widespread access to networks capable of providing download speeds of at least 100 Mbps, which can be upgraded to gigabit speeds, aligning with the broader Digital Decade targets for 2030. This is a significant push towards ensuring ultra-fast broadband access across the continent.
• Access to Physical Infrastructure: The EECC encourages shared use of existing physical infrastructure, thereby reducing the cost and environmental impact of deploying new networks. This measure is particularly important for fostering competition and enabling new market entrants to roll out their networks more efficiently.
• Consumer Rights and Protections: The EECC also includes provisions to strengthen consumer rights. This includes clearer contract information, easier provider switching, and better protection against unfair practices. These measures are aimed at ensuring that consumers not only have access to high-quality telecom services but also have rights and protections in the increasingly digital world.
• Harmonisation and Regulation: The Code aims to harmonise telecom regulations across EU member states, ensuring a level playing field and consistent regulatory environment throughout the EU. This harmonisation is crucial for the smooth functioning of the internal market and for fostering cross-border digital services.

The Role of State Aid in FTTH Deployment

In the quest to achieve widespread FTTH deployment, state aid plays a pivotal role, especially in regions where commercial viability is challenging - this is particularly true in rural and remote areas, where the cost of deploying gigabit connectivity can be prohibitive. State aid, therefore, becomes a critical tool in ensuring that these less commercially attractive areas are not left behind in Europe's digital transformation, allowing for a more equitable and inclusive digital landscape across the continent.

Collaboration Across EU Institutions: A Synergistic Approach

The successful deployment of FTTH in Europe is a result of concerted efforts and collaboration among key EU institutions. The European Commission, European Parliament, and Council of the European Union work together to shape policies and regulations that support FTTH deployment. Their roles encompass regulatory oversight, policy development, legislative processes, and ensuring consistent implementation across member states.

Furthermore, the Body of European Regulators for Electronic Communications (BEREC) plays an instrumental role in harmonising these regulations and guiding National Regulatory Authorities. Being a collaborative framework that ensures that the objectives of the Digital Decade targets are met, it paves the way for a robust and interconnected Europe.

Digitally Inclusive Future

Europe's journey towards a fully connected digital future, underpinned by FTTH technology, is a demonstration of the power of visionary policies, strategic investments, and collaborative governance. The concerted efforts of EU institutions, member states, and industry stakeholders are crucial in realising this vision.

Become a member of the FTTH Council to stay informed on the upcoming policies and regulations as well as other essential developments in the world of FTTH. As a member, you will be at the forefront of the latest innovations and trends in this dynamic field!