EU FTTP trends - lessons for ANZ

European fibre adoption highlights the need for infrastructure competition and wholesale price reform in Australia and New

Eduardo Fichmann · Factory Capital — Operating Partner22 July 2024Period: July 202412 min read

70%↑

Share of European premises passed by FTTP (2023)

87%→

New Zealand UFB availability to premises (June 2023)

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Abstract

This report addresses trends in high-speed connectivity adoption in European and some other markets with ongoing investments in digital infrastructure and next generation of telecommunications technology. It covers recent developments and the state of connectivity overseas, particularly in the EU for fibre (and 5G) investments. There is a gap, particularly in pricing, between Europe and ANZ that arguably leads to lower FTTP takeup in these markets. Both Australia and New Zealand should consider taking steps to expand access to FTTP, but there will need to be significant commercial and policy change to make this happen.

Key Takeaways

FTTP is now the global standard, with European coverage exceeding 70% and the UK targeting 90% by 2025.
Australia's NBN wholesale prices are nearly double those of the UK, with 100 Mbps plans costing ~$60 vs ~$32.
New Zealand leads ANZ in fibre maturity with 87% UFB availability and a high 73% uptake rate.

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Frequently Asked Questions

High wholesale costs are the primary barrier, with Australian 100 Mbps plans priced at ~$60 compared to just ~$32 in the UK. While European FTTP coverage has already surpassed 70% of premises, ANZ markets continue to struggle with pricing structures that disincentivize migration from legacy copper.

5G is a mobile-centric service and will not replace fixed FTTP broadband in the medium term. Fixed infrastructure remains critical to support the 63% of household screens projected to be Ultra HD by 2027, a demand floor that mobile networks cannot efficiently service at scale.

New Zealand provides the regional benchmark with 87% UFB availability and a high 73% uptake rate. This performance is driven by infrastructure competition models similar to those in Spain and the UK, contrasting with the monopoly structures that have slowed adoption elsewhere.

FTTP is the established global standard, evidenced by an 11.5% CAGR in homes passed across the EU39 area from 2019 to 2023. Leading markets like the UK are now aggressively targeting 90% coverage by 2025 to secure digital infrastructure dominance.

EU FTTP trends - lessons for ANZ

Abstract

Key Takeaways

Frequently Asked Questions

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