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Study Finds Europe's Switch to Fiber Optic Networks will Take 92 Years at Current Pace

November 27, 2012

Study Finds Europe's Switch to Fiber Optic Networks will Take 92 Years at Current Pace

By Tracey E. Schelmetic
TMCnet Contributor

Europe has been struggling as of late to implement fiber optic networks, but despite the effort, the networks are not being rolled out fast enough, and despite recent investments, if the work continues at its current pace, it may take nearly a century to complete a fiber-based broadband infrastructure, according to a new study.

The report funded by FTTH Council Europe, found that connecting every home in the EU with fiber would cost €261 billion in capital.

"The current rate of telecoms investment into fiber is a mere €3 billion a year and that is simply not fast enough," said the authors of the study.

According to the FTTH Council Europe, EU nations must take steps to accelerate the pace with a coordinated program that includes incentives for fixed-line operators to take the plunge into fiber. At this time, these operators have little incentive, since they are making money off existing networks.

“The industry could fund the switchover itself over a period of 25 years with the right regulations," said Stefan Stanislawski, co-founder of Ventura Team, which carried out the study along with Portland Advisors.

The FTTH Council Europe is an industry organization whose mission is to accelerate the availability of fiber-based, ultra-high-speed access networks for the benefit of consumers and businesses. Created in 2004 by five founding members, Alcatel-Lucent, Cisco, Corning, Emtelle and OFS (News - Alert), the FTTH Council Europe, now has more than 150 members and a contracted team working to promote the benefits of fiber access across the continent.

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Edited by Brooke Neuman
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