Home
 » ISP News » 
Sponsored

Germany, Poland and UK are Most Attractive for FTTP Investment

Thursday, December 3rd, 2020 (12:02 pm) - Score 1,488
fibre optic cables coloured from above

A new survey from law firm DLA Piper, which surveyed 62 senior executives at major investment and advisory firms for the “full fibre” sector, has found that 28% believe the ongoing pandemic has led to higher FTTP broadband rollout and more appetite from investors. Germany, the UK and Poland are the most attractive locations for this.

Some 84% of respondents consider infrastructure investors will be among the most active in future FTTP projects, while 29% believe telecom operators will be active over the same timeframe (a decrease of 15% in comparison to the last 24 months). Pension funds will also become more active in the FTTP investment space (rising 20% over the last 2 years and then 27% over the next 2).

However, while Germany, the UK and Poland were found to be the most attractive locations for investment in fibre over the next 24 months (due to low penetration levels, high ARPUs, high end-user demand and government incentives), the UK also appears near the top of the least attractive chart (just below Spain and Italy).

The main reasons cited for appearing on the least attractive table, despite the UK’s rapid FTTP growth and coming second from top as the most attractive country, are that “these markets are too competitive, come with complex political risks and have a presence of strong national incumbents.” Awkward.

most_and_least_attractive_fttp_countries_for_investment

In terms of investment, 78% of respondents expect the overall value of FTTP European investment to increase over the next 24 months. Of these, nearly one-quarter (23%) expect to invest between EUR500m to EUR1bn, while an additional 14% will invest more than EUR1bn.

Signalling that the market is attractive for future investment, two-fifths (41%) believe the costs of financing FTTP projects are lower compared to other sectors, as favourable financing conditions are expected to persist. In particular, low FTTP penetration is a primary reason the UK is an attractive investment target.

However, the risk of overbuilding (40%), regulatory complexity (26%), and competition with other investors (26%) are some of the biggest obstacles to future FTTP investment.

Mike Conradi, Partner and Global co-chair of DLA Piper’s Telecoms Practice, said:

“The COVID-19 pandemic has accelerated technology and infrastructure requirements. A combination of demand for ultrafast broadband, supportive government policies, strong commercial take up, and sustained lending and investment appetite from banking and specialist institutions, is making FTTP increasingly attractive in Europe.

Our survey reveals that whilst there are a broad range of business models which are of interest – looking at factors like geography, scale, degree of subsidy, speed and cost of construction, and route to market, there’s a consensus that we’re only at the early stages in the investment cycle, with at least another five years or so to run – and infrastructure funds have significant dry powder.”

Check out the full report here.

Share with Twitter
Share with Linkedin
Share with Facebook
Share with Reddit
Share with Pinterest
Mark Jackson
By Mark Jackson
Mark is a professional technology writer, IT consultant and computer engineer from Dorset (England), he also founded ISPreview in 1999 and enjoys analysing the latest telecoms and broadband developments. Find me on Twitter, , Facebook and Linkedin.
Leave a Comment
2 Responses
  1. Avatar Name says:

    The main issue in Poland is that nobody wants to build FTTP infrastructure in rural areas. However any newly build housing estate usually have one to three fibre cables from different ISPs in each home or flat.

    1. Avatar Marek says:

      New houses in rural areas may have nothing available at all, they must use wireless ISP or LTE. Area where I’m living is supposed to have DSL but after I called Orange they sent out technician which told me that he won’t run cable despite my adress still being shown available on Orange website and house is very recent, it was finished few years ago.

      You should check out what happens in Silesia region, pure madness, you can have cables from 3 companies on poles in some Village. On other hands we have some Eu fundings which are used by Orange, Inea, Tauron (electric utility company in southern Poland) or Nexera, there are also some smaller regional companies. Nexera is strange one. They plan to have reach of about 1 milion individual adresses in 3 to 5 years but they build out to few hundred of schools and around 40 thousands of individual adresses so far, they will operate familiar to Openreach, wholesale only, you won’t be able to buy broadband from them as private person like you could from Orange or UPC (Liberty Global/Virgin Media subcompany in Poland).

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Comments RSS Feed

Javascript must be enabled to post (most browsers do this automatically)

Privacy Notice: Please note that news comments are anonymous, which means that we do NOT require you to enter any real personal details to post a message. By clicking to submit a post you agree to storing your comment content, display name, IP, email and / or website details in our database, for as long as the post remains live.

Only the submitted name and comment will be displayed in public, while the rest will be kept private (we will never share this outside of ISPreview, regardless of whether the data is real or fake). This comment system uses submitted IP, email and website address data to spot abuse and spammers. All data is transferred via an encrypted (https secure) session.

NOTE 1: Sometimes your comment might not appear immediately due to site cache (this is cleared every few hours) or it may be caught by automated moderation / anti-spam.

NOTE 2: Comments that break our rules, spam, troll or post via known fake IP/proxy servers may be blocked or removed.
Cheapest Superfast ISPs
  • TalkTalk £22.00 (*29.95)
    Speed 38Mbps, Unlimited
    Gift: None
  • Vodafone £22.00 (*25.00)
    Speed 35Mbps, Unlimited
    Gift: None
  • Hyperoptic £22.00
    Speed 50Mbps, Unlimited
    Gift: Promo Code: EASTERSALE
  • Onestream £22.50 (*27.99)
    Speed 45Mbps, Unlimited
    Gift: None
  • xln telecom £22.74 (*47.94)
    Speed 66Mbps, Unlimited
    Gift: None
Large Availability | View All
New Forum Topics
Cheapest Ultrafast ISPs
  • Vodafone £26.00 (*29.00)
    Speed: 100Mbps, Unlimited
    Gift: None
  • Virgin Media £28.00 (*44.00)
    Speed: 108Mbps, Unlimited
    Gift: None
  • Hyperoptic £29.00 (*35.00)
    Speed: 150Mbps, Unlimited
    Gift: Promo Code: EASTERSALE
  • TalkTalk £29.95 (*39.95)
    Speed: 145Mbps, Unlimited
    Gift: None
  • Giganet £35.00 - 59.00
    Speed: 200Mbps, Unlimited
    Gift: None
Large Availability | View All
The Top 20 Category Tags
  1. FTTP (3153)
  2. BT (2907)
  3. FTTC (1843)
  4. Building Digital UK (1842)
  5. Politics (1820)
  6. Openreach (1736)
  7. Business (1576)
  8. Mobile Broadband (1366)
  9. FTTH (1355)
  10. Statistics (1335)
  11. 4G (1175)
  12. Fibre Optic (1121)
  13. Wireless Internet (1097)
  14. Virgin Media (1089)
  15. Ofcom Regulation (1086)
  16. EE (775)
  17. Vodafone (767)
  18. TalkTalk (729)
  19. Sky Broadband (711)
  20. 5G (655)
Promotion
Helpful ISP Guides and Tips
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
»
Sponsored

Copyright © 1999 to Present - ISPreview.co.uk - All Rights Reserved - Terms , Privacy and Cookie Policy , Links , Website Rules , Contact