Policy makers must explore all possible levers to achieve gigabit connectivity ambitions

Some European countries have already exceeded 90% fibre-to-the-home (FTTH) coverage, but others look set to fall short of the European Commission (EC)'s connectivity targets. With an ambitious, long-term perspective, and careful planning, the high up-front costs will be more than offset by the benefits of high-quality, futureproof infrastructure that can bridge the digital divide, support true digital equity and ensure a connected future for all European citizens. 

EU connectivity targets are ambitious 

The European Union (EU) expects “gigabit connectivity for all” by 2030. This central goal of the Digital Decade policy programme targets is expected to be achieved principally via access networks that supply FTTH.

Commercial and governmental focus is intensifying, but widespread deployment of infrastructure in underserved and remote areas (where operators are unlikely to deploy networks under purely commercial terms) remains a real challenge in most EU countries.

At the midpoint of the Digital Decade policy’s implementation, gigabit coverage across Europe varies considerably. A number of countries have exceeded 90% FTTH coverage through commercial deployment supported by government programmes. Others lag well behind, characterised by networks based largely on fibre-to-the-cabinet (FTTC) infrastructure that requires significant upgrades. This leads to two questions: how can the ambitious targets of the Digital Decade and other long-term national policies be met across Europe, and how can addressing the challenges of achieving high levels of FTTH coverage help to meet those targets?

In areas where deployment costs outweigh the commercial return on investment, governments can provide support in the form of subsidy funding, enabling network coverage to be extended beyond the threshold of normal commercial viability. However, governments must make nuanced decisions when developing such support schemes, balancing the trade-offs between the subsidy funding required (cost to the ‘public purse’), the specification of solutions (i.e. quality) and the coverage achievable (and the time it takes to implement it).

Understanding local characteristics makes a huge difference 

The optimal answer for any given country needs to reflect a wide range of factors, including:

• technology options available and their different technical characteristics, technology roadmaps and maturity of solutions, and deployment timescales
• local market conditions, including geographical and topographical factors, market structure, levels of competition, the regulatory environment, supply chain capacity and barriers to deployment.

FTTH is a desirable technology for its combination of performance and futureproofing over the long term, as demonstrated by support schemes in markets such as Ireland. However, balanced use of alternative technologies or hybrid solutions may be necessary for the costliest or hardest-to-reach premises in the short term, as is being considered in Sweden.

EU Member States’ plans to achieve “gigabit connectivity for all” are at differing stages and there are still opportunities to refine and improve such schemes. Careful planning and tailoring of support schemes can make a real difference in achieving nationwide gigabit coverage with high levels of FTTH coverage (the most futureproof digital infrastructure, albeit with the highest up-front cost). 

Policy makers need to explore all possible levers and options to find the right fit

Each scheme needs to be designed to reflect a whole host of specific local characteristics, ranging from the funding available, the market structure, the infrastructure in place as well as the type and topography of underserved and ‘final percentage’ premises. The varying requirements mean that there can be no simple uniform blueprint, but Analysys Mason has identified a progression of important steps that can help to shape a successful scheme. These include:

1. Undertaking careful review of targets, demand, timescales and affected premises.
2. Estimating potential scheme costs and subsidy funding requirements.
3. Considering the need to bolster regulatory mechanisms that could support network deployments.
4. Engaging extensively with stakeholders as input to scheme design.     
5. Making clear decisions that balance the trade-offs between quality (specification of requirements), time (the extent of coverage of the chosen specification) and costs (the quantum of subsidy funding required).
6. Undertaking internal planning for the scheme delivery stages. 
7. Developing a comprehensive resourcing plan to enable robust monitoring of deployment and operations. 

Achieving “gigabit connectivity for all”, with high levels of FTTH coverage, is feasible, but only with clear ambition and a long-term view from governments. Its realisation is contingent on a robust approach to scheme design that takes account of local market conditions. Addressing this challenge as soon as possible will give such schemes the best chance of success: not only to achieve the immediate goals of meeting the Digital Decade targets, but also to bridge the digital divide, support true digital equity and ensure a connected future for all European citizens. 

Analysys Mason has a long history of work to extend connectivity into rural areas to realise the potential and maximise the benefits of digital technology. We have worked extensively with regulators, operators and investors to help achieve the best balance of ambitious targets and carefully costed implementation plans. 

This article is a summary of a perspective report that was developed for FTTH Conference 2025, organised by FTTH Council Europe. The full version of the report is available via the link on the right. 

For further discussion of anything in this article, the main report or any other matter relating to rural broadband provision, please get in touch with our experts Ian Adkins, Oliver Loveless and Matt Yardley.