Over €30 Billion Invested to Boost Western Europe’s Next-Generation Broadband by 2017, IHS Technology Says

  Over €30 Billion Invested to Boost Western Europe’s Next-Generation
  Broadband by 2017, IHS Technology Says

IHS Forum, Berlin 2014

Business Wire

LONDON -- May 8, 2014

Over €30 billion will be invested in the next three years in Western Europe’s
broadband sector, according to new analysis from IHS Inc. (NYSE: IHS), the
leading global source of critical information and insight. Across Germany,
France, UK, Italy and Spain, government bodies and telecommunication companies
will spend €200 per household on next-generation broadband rollout. Key growth
opportunities and analysis on German growth pathways will be covered at the
IHS Forum in Berlin from 12-14 May.

“Across Europe’s big-five, companies and governments are looking to tap into
the future economic and social benefits of having a future-proofed broadband
network,” said Richard Broughton, head of broadband analysis at IHS

Germany – €6 billion investment from Deutsche Telekom

Deutsche Telekom made headlines when it committed in 2012 to a headline
investment of €30 billion in high speed broadband technology in the years to

A significant proportion of Deutsche Telekom’s investment is actually
committed to the US for LTE build-out, but €6 billion is still being devoted
to next-generation broadband rollout in Germany. Deutsche Telekom intends to
ensure that 65 percent of homes are covered by its fibre-to-the-cabinet (FTTC)
network by 2016, with new ‘vectoring’ technology being deployed to raise
transmission rates to 100Mbit/s.

France – €20 billion investment from public and commercial sources

In 2013, the French government set out plans to invest €20 billion of public
and private funds in next-generation fixed and mobile broadband, aiming to
cover half of the population by 2017, with the remaining homes covered within
a further five years.

“Crucially, the government’s plans have stratified investment, asking ISPs to
fund urban coverage, while providing a mixture of state and local government
funding to ensure that semi-urban and rural areas are connected,” Broughton

UK – €5 billion investment from BT and central government

In 2013, the UK government committed to ensuring that 95 percent of UK homes
receive speeds of at least 24Mbit/s by 2017. Coupled with BT’s investment in
FTTC and FTTH broadband, intended to cover nearly 20 million homes by the end
of 2014, over €5 billion is being spent on upgrading the UK’s broadband

“Less headline grabbing, but nonetheless, locally important investments are
being made by other companies, including Sky and Talk Talk. They have unveiled
plans to cover the city of York and a number of other yet-unnamed areas with
gigabit-per-second broadband,” Broughton said.

Spain – Network sharing by main operators key to keeping costs low

Telefonica Spain, Vodafone and Orange are to invest over €1 billion in a joint
fibre optic network covering 6 million homes by 2017, and have signed
additional deals to share fibre infrastructure in buildings in Spain.

“In recession-hit Spain, network sharing – particularly as far as investment
CapEx-heavy fibre-optic infrastructure is concerned – is a sound strategy for
telecoms companies to engage in for reducing costs amongst ongoing uncertainty
around immediate consumer demand for higher-speed broadband products,” said

Italy – Telecom Italia strategic plan to invest €1.8 billion in

At the end of 2013, Telecom Italia ended speculation about its plans for
next-gen broadband rollout by committing to significant investment in next-gen
broadband – encompassing €1.8 billion in fixed access, and €0.9 billion in
expanding its next-gen mobile network. The company aims to cover over half of
the population with its ‘ultrabroadband’ by 2016.

IHS Forum Registration

The IHS Forum, Berlin 2014 will be held at the InterContinental Hotel Berlin,
from 12-14 May. Further information and delegate registration is available at

Complimentary Media Accreditation

Members of the press can now register for a complimentary pass to the IHS
Forum in Berlin, held at the InterContinental Hotel Berlin, from 12-14 May. To
register, please send an email with your name, title and outlet details to


A full agenda and additional information can be found here:

About IHS (www.ihs.com)
IHS (NYSE: IHS) is the leading source of information, insight and analytics in
critical areas that shape today’s business landscape. Businesses and
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and confidence. IHS has been in business since 1959 and became a publicly
traded company on the New York Stock Exchange in 2005. Headquartered in
Englewood, Colorado, USA, IHS is committed to sustainable, profitable growth
and employs more than 8,000 people in 31 countries around the world.

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