The event explored the role of private investment and open infrastructure in achieving connectivity objectives
Regulation and collaboration to improve connectivity
On 19th January 2024, the FTTH Council Global Alliance (FCGA) released its Global Policy and Regulation Review. It covered several aspects of FTTH deployment globally, highlighting the legal and regulatory frameworks, deployment targets as well as funding and competition challenges. To support the launch of the review the FCGA organised a webinar to discuss the challenges and priorities that each region encounters in reaching FTTH deployment targets, and regulatory tools which can be leveraged to meet them. The panel were optimistic on the outlook, emphasising the interdependent roles that legislation, private investment and international organisations all play in advancing FTTH rollout. It became clear that the nuances each region will encounter in reaching their connectivity goals will be managed through a variety of approaches with different regions acting as case studies for best practice.
Who’s footing the bill?
Recognising the momentous deployment goal to get every household connected with gigabit speeds and the investment required, Franco Accordino (Head of Unit: Investment in High-Capacity Networks, EC) spoke to the benefits of the EC approach. Highlighting the roles of both the European Regional Development Fund (ERDF) and the European Investment Bank as core entities that support an effective deployment of funds to provide a foundational level of resilience across the EU networks. The panel praised the increasing trend of public and private partnerships, a mechanism that aims to share the risk and costs associated with infrastructure development (e.g. The Broadband Infrastructure Initiative in South Africa). Whilst bringing connectivity to everyone remains a priority, there were concerns raised about the lack of initiatives in remote areas. There was a consensus that where the market fails the public sectors should be picking up the tab. However, with limited funds it has become clear that satellite solutions such as Starlink have taken up a primary role in these areas as larger operators focus on the commercial rollout. To incentivise operators to go further, Accordino suggested that each region highlight the significance of connectivity through a ‘Broadband Award’, a tactic that has been successfully implemented and well received by the EC.
A global perspective on infrastructure sharing
As a solution to the costs associated with FTTH deployment, the panel spoke to the option of open networks to prevent over investment. This opened up discussion on market dynamics, competition and how they would be impacted by infrastructure sharing. Reflecting on the situation in the Middle East, Suleiman Al Hedaithy (Board member, Fiber Connect Council, Middle East & North Africa) noted that the market is in need of attracting more private investment providing an increased appetite for open access and infrastructure sharing among operators. Juanita Clark (CEO, Digital Council Africa), emphasised the potential for Africa to restructure the market to foster a more innovative and competitive environment. She went on elaborate on the stifled market, explaining that the infrastructure development is limited to small networks building out infrastructure and being acquired by larger operators. Speaking to the European picture, Accordino gave a nod to the progress of the Gigabit Infrastructure Act (GIA). He noted how this legislation incentivises the switch off of legacy networks and encourages gigabit network deployment through use of promoting flexible pricing to open networks cultivating competition within the market. The panel agreed that the global preference would be to open up networks, however the challenge lies in fostering a competitive market whilst also promoting private investment for network development.
