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Over €30 Billion Invested to Boost Western Europe’s Next-Generation Broadband by 2017, IHS Technology Says

Over €30 billion will be invested in the next three years in Western Europe’s broadband sector, according to new analysis from IHS Inc. (NYSE: IHS), the leading global source of critical information and insight. Across Germany, France, UK, Italy and Spain, government bodies and telecommunication companies will spend €200 per household on next-generation broadband rollout. Key growth opportunities and analysis on German growth pathways will be covered at the IHS Forum in Berlin from 12-14 May.

“Across Europe’s big-five, companies and governments are looking to tap into the future economic and social benefits of having a future-proofed broadband network,” said Richard Broughton, head of broadband analysis at IHS Technology.

Germany – €6 billion investment from Deutsche Telekom

Deutsche Telekom made headlines when it committed in 2012 to a headline investment of €30 billion in high speed broadband technology in the years to 2015.

A significant proportion of Deutsche Telekom’s investment is actually committed to the US for LTE build-out, but €6 billion is still being devoted to next-generation broadband rollout in Germany. Deutsche Telekom intends to ensure that 65 percent of homes are covered by its fibre-to-the-cabinet (FTTC) network by 2016, with new ‘vectoring’ technology being deployed to raise transmission rates to 100Mbit/s.

France – €20 billion investment from public and commercial sources

In 2013, the French government set out plans to invest €20 billion of public and private funds in next-generation fixed and mobile broadband, aiming to cover half of the population by 2017, with the remaining homes covered within a further five years.

“Crucially, the government’s plans have stratified investment, asking ISPs to fund urban coverage, while providing a mixture of state and local government funding to ensure that semi-urban and rural areas are connected,” Broughton said.

UK – €5 billion investment from BT and central government

In 2013, the UK government committed to ensuring that 95 percent of UK homes receive speeds of at least 24Mbit/s by 2017. Coupled with BT’s investment in FTTC and FTTH broadband, intended to cover nearly 20 million homes by the end of 2014, over €5 billion is being spent on upgrading the UK’s broadband infrastructure.

“Less headline grabbing, but nonetheless, locally important investments are being made by other companies, including Sky and Talk Talk. They have unveiled plans to cover the city of York and a number of other yet-unnamed areas with gigabit-per-second broadband,” Broughton said.

Spain – Network sharing by main operators key to keeping costs low

Telefonica Spain, Vodafone and Orange are to invest over €1 billion in a joint fibre optic network covering 6 million homes by 2017, and have signed additional deals to share fibre infrastructure in buildings in Spain.

“In recession-hit Spain, network sharing – particularly as far as investment CapEx-heavy fibre-optic infrastructure is concerned – is a sound strategy for telecoms companies to engage in for reducing costs amongst ongoing uncertainty around immediate consumer demand for higher-speed broadband products,” said Broughton.

Italy – Telecom Italia strategic plan to invest €1.8 billion in ‘Ultrabroadband’

At the end of 2013, Telecom Italia ended speculation about its plans for next-gen broadband rollout by committing to significant investment in next-gen broadband – encompassing €1.8 billion in fixed access, and €0.9 billion in expanding its next-gen mobile network. The company aims to cover over half of the population with its ‘ultrabroadband’ by 2016.

IHS Forum Registration

The IHS Forum, Berlin 2014 will be held at the InterContinental Hotel Berlin, from 12-14 May. Further information and delegate registration is available at http://ihsglobalevents.com/forum/berlin2014/

Complimentary Media Accreditation

Members of the press can now register for a complimentary pass to the IHS Forum in Berlin, held at the InterContinental Hotel Berlin, from 12-14 May. To register, please send an email with your name, title and outlet details to [email protected].

Agenda

A full agenda and additional information can be found here:
http://ihsglobalevents.com/forum/berlin2014/agenda/

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in critical areas that shape today’s business landscape. Businesses and governments in more than 165 countries around the globe rely on the comprehensive content, expert independent analysis and flexible delivery methods of IHS to make high-impact decisions and develop strategies with speed and confidence. IHS has been in business since 1959 and became a publicly traded company on the New York Stock Exchange in 2005. Headquartered in Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth and employs more than 8,000 people in 31 countries around the world.

IHS is a registered trademark of IHS Inc. All other company and product names may be trademarks of their respective owners. © 2014 IHS Inc. All rights reserved.

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