- The existence of a high capacity, high speed and reliable internet connectivity is arguably the backbone for the digital transformation of the European economy and one of the main pillars for future economic growth. Moreover, Covid-19 has demonstrated that internet connectivity is a crucial factor in the functioning of society and in mitigation of the pandemic’s negative impact on almost all areas of life.
- The EU and UK territories present significant disparities in their telecommunications infrastructure, with some countries, including some of the largest e.g., UK and Germany, still mostly dependent on copper connections, while others e.g., France and Spain are well advanced in transition to optical fibre. The pace of transition and coverage in all countries will be one of the fundamental developments in the telecom sector in the medium term.
- The EU and UK authorities have established ambitious goals to increase broadband internet coverage and adaptability, and the telecom operators have set expansion plans for the medium term to achieve them. However, they will require significant investment in an already capital‑intensive sector. Telecom operators are expected to seek to minimize the impact on their creditworthiness throughout the investment period by taking full advantage of measures such as government support, partnership with investors or joint ventures.
Transition to Optical Fibre in Europe: How can the EU and UK Telecom Market raise the necessary funds and retain its credit-standing?
2 Mar 2022