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Europe's FTTH Price Tag: $167 Billion Connecting all European residences with fiber to the home (FTTH) would cost about €156 billion (US$167 billion), according to a new study by the FTTH Council Europe. The cost model covers all 28 European Union countries (including a pre-Brexit UK), and accounts for the 30% of the region that already has fiber coverage and the 10% of homes with connections, according to the Council. The organization will go into more details about the report during FTTH Conference 2017 in Marseille, France, next month. Network design and cost-modeling firm COMSOF developed the cost model, Erzsebet Fitori, director general of the FTTH Council Europe, says. The cost is expected to drop as FTTH Council and COMSOF integrate other factors into the equation, she adds. "It is based on current implementation costs -- for example, it took account of increased labor costs -- and on a detailed modeling, including the distribution of population and geography leading to a high level of accuracy (high and low density, single and multi-dwelling units, etc.)," Fitori tells UBB2020. "The potential impact of the cost-reduction directive and the use/sharing of existing infrastructure is not yet included in the €156 billion figure. We will release the estimated figure, including these savings, in Marseille. Approximately 30% cost-savings could be realized from cost-reduction and re-use/sharing, but it is not a simple deduction of 30% from the €156 billion." The study comes months after the European Commission presented its report, "Connectivity for a Competitive Digital Single Market -- Towards a European Gigabit Society," to the European Parliament, among others. Its goal? To demonstrate the importance of 5G to the continent's future.
Unequal Access to FTTH
There's big disparity between FTTH/B availability across the EU's 28 members. (Source: Heavy Reading)
"As the EU is just rewriting its connectivity targets and telecoms legislation, we are actively contributing to this legislative and policy debate," Fitori says. "We will have a series of discussions on both policy and regulation, the more operational issues of fiber deployments, the benefits fiber enables and, of course, its costs in Marseille."
Broad, varied market More than 80% of homes in Spain, Sweden and Portugal already have access to a FTTH connection, says Ronan Kelly, president of the FTTH Council, in the report. Several Eastern European nations including Latvia and Lithuania have more widespread uptake of FTTH and fiber to the business (FTTB) that countries such as the UK, Italy and Germany, Heavy Reading finds.
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