Getting Europe connected
The race is on! In 2022, the European Union (EU) set an ambitious target of having every European household connected to a fast internet (gigabit) network by 2030.
It might sound like a tough task, requiring many of billions of euros in investment, but it’s one that ING is up for. So much so that it is partnering with clients in the telecoms sector to roll out the necessary fibre network throughout Europe.
The EU believes that digital connectivity can help economies to become more competitive and is essential for economic growth. Data can be moved even faster and more reliably over longer distances, connecting shoppers in Paris with retailers in New York, and streaming live meetings from Singapore to Barcelona.
Lightning-fast
Installing fibre connections in households means we can enjoy lightning-fast internet speed on multiple devices at the same time, making streaming, gaming, and video calls smooth and hassle-free. Plus, fibre is super reliable, unaffected by bad weather, and ready to handle future tech demands. You can also bundle internet, TV, and phone services into one, often at a better price and quality. On top, fibre networks are more energy-efficient than legacy copper networks.
The rollout of fibre creates jobs in various sectors and attracts businesses, which helps local economies thrive. High-speed internet also opens up online business opportunities and enables remote work, potentially increasing household incomes. Overall, investing in fibre infrastructure drives long-term economic growth by boosting productivity and innovation.
Challenges
But Europe faces several challenges in expanding its fibre networks. The market is highly fragmented, particularly in rural areas, and the regulatory environment is complicated, making it hard to attract large private investors.
ING is playing a major role in addressing these challenges and were recently instrumental in financing two major providers. We supported XpFibre, France's largest independent fibre-to-the-home operator, with its €5.8 billion debt refinancing. This landmark transaction is one of the largest European digital infrastructure financings to date.
ING also supported Dutch fibre provider Glaspoort with a €1.2 billion investment that will be used to connect 1.5 million households and businesses to faster internet.
Long way to go!
A study commissioned by the European Commission last year estimates that around €114 billion of investment is still needed to reach the 2030 fixed connectivity targets while an additional investment of around €33.5 billion is estimated to have full 5G to all populated areas by 2030.
This significant funding is crucial, especially given the stark differences in fibre coverage across Europe. Additional investment is particularly required in Belgium and Greece, where only 30% of homes are connected to fibre, while Romania is leading the way with over 90% fibre coverage.
About fibre infrastructure
Fibre infrastructure connects homes and businesses with high-speed internet using fibre optic cables. These tiny glass fibres transmit data via light, offering faster and more stable connections than traditional copper wires. With fibre-to-the-premises (FTTP), speeds exceed 1 Gbps for downloads and uploads. This infrastructure is crucial for 5G networks, enhancing speed and reducing latency. Investing in fibre also boosts local economies, creates jobs, and supports remote work and online businesses, all while being more energy-efficient than copper networks.