Highlights from FTTH Council

copper switch-off study

POLICY

Although several countries have extensive fibre coverage, Europe has been slow to switch off copper. A study on this topic by WIK, commissioned by the FTTH Council Europe, was released at the FTTH Conference in March.

The new study analyses the different stages of copper switch-off in ten European Union Member States1 and identifies benefits as well as enablers, incentives, challenges and barriers to switching from copper to fibre networks.

1. Estonia, Sweden, Spain, Portugal, Italy, Netherlands, France, Germany, Poland, UK

Copper switch-off progress is very diverse across EU Member States

In some countries, the process is in its infancy, in others FTTH is not yet widely deployed. Among analysed Member States, Estonia, Spain and Sweden are leading the way. The greatest progress has been made in Estonia, where 70% of copper exchanges closed in 2018 and plans exist to remove copper access for 60% of broadband subscribers by 2020. However, across Europe, progress has been made towards PSTN (public switched telephone network) switch-off - a prerequisite and facilitator for copper switch-off.

“This study is of tremendous importance for the FTTH Council Europe. The telecom market is in a transitional phase, moving from an old copper-based infrastructure to new fibre-based networks. All eyes are on 5G but we should not forget that fibre is the foundation of all technologies for connectivity. Policy is lagging behind the market developments, and it is important that it catches up.”

- Ronan Kelly, former President FTTH Council Europe

Copper switch-off significantly enhances the business case for fibre. The transition to fibre is a win-win for consumers and investors

Moving to fibre benefits end-users as well as fibre network operators in several key areas:

Reliability Fibre is 70%-80% more reliable than copper resulting in lower fault rates
Energy efficiency 40-60% energy savings due to fibre’s lower power consumption
Cost efficiency 40-60% lower maintenance costs
Better deal for consumers Surveyed consumers were more satisfied with fibre (82% happy vs. 50% on DSL) Key benefits mentioned included higher bandwidth, wider range of services and better value for money
Better deal for investors: Evidence suggests clarity on copper switch-off can improve the business case for fibre

“Reasons for the limited switch-off plans are diverse. In some countries, FTTH has yet to be widely deployed. In others, strict controls on exchange closure may be delaying switch-off. What’s more, a lack of understanding of the benefits of fibre and challenges in switching to a fibre operator might also be making it difficult for consumers to migrate. However, regulatory approaches to access regulation and pricing, migration and advertising standards can all act as incentives for operators and consumers to switch. Product pricing in relation to perceived value influences migration to fibre. This perceived value, in turn, is affected by how broadband is marketed to customers and whether they understand the difference between copper, partial fibre, and full fibre. Customers must also be able to switch easily. Solutions which provide ’plug and play’ option and support legacy equipment could make switching easier. Pursuing PSTN switch-off could also be a helpful precursor to copper switch-off.”

– Ilsa Godlovitch & Director Brussels Office, WIK-Consult

Key steps to support switch-off

Findings suggest that member states and regulators could help enable copper and PSTN switch-off, and support consumer migration to FTTH.

Incentivising FTTH deployment and/or FTTH access use by incumbents
Avoid promoting continued reliance on copper and copper upgrades such as FTTC
Facilitating PSTN switch-off by encouraging operators to find solutions that support legacy equipment or informing consumers of alternatives
Reviewing conditions (notice periods, wholesale obligations) for copper exchange closure
Improving customer awareness by clearly distinguishing FTTH from FTTC in advertising
Improving processes for switching between incumbent and alternative FTTH platforms

“We believe Europe needs a single market strategy for the migration process and the ultimate switch-off of copper. European-level debate on the fate of copper is required. Europe needs new fibre infrastructure and constructive dialogue amongst stakeholders. Our study aims to be a discussion starter and to bring together policy makers, copper network owners, new fibre investors and consumers to constructively approach this complex topic.”

- Erzsébet Fitori, Director General FTTH Council Europe