Arthur D. Little Calls on Incumbent Operators
and Regulators to Change European FTTH
September 14, 2010 05:03 AM Eastern Daylight Time
LONDON--(EON: Enhanced Online News)--As consumer demand for services such as High Definition TV and
peer-to-peer file exchange increases, Arthur D. Little’s latest viewpoint “FTTH: Double Squeeze of Incumbents
– Forced to Partner?" provides insight into the ultra high-speed broadband sector. It calls on incumbent operators
in Europe to change their strategy, and for governments and regulators to adjust their policies or Europe’s economic
competitiveness could be impacted.
Utilities and alternative operators have formed new business models, enabling them to take the lead in rolling out
FTTB/H networks in Europe. In 2009, 65% of the 11 million fibre-connected European households were served by
networks deployed by utilities (22%), alternative network operators (40%) or housing associations (3%). At the
same time, cable operators have updated their networks and can offer 50 to 100 Mbps broadband services at very
The ultra high-speed broadband services offered via the FTTB/H deployments of utilities and alternative operators
on the one hand, and cable operators on the other, put incumbents into a double squeeze. Incumbents must now
protect their broadband market. Some have already increased their FTTB/H roll-out efforts, though remarkably, this
has been done in partnership with utilities or even with direct competitors in an effort to share costs and risks.
“Partnering along the value chain and sharing the necessary investment can enable incumbents to protect their core
business and remain competitive in a growing sector," says Karim Taga, Director at Arthur D. Little’s
Telecoms, Information, Media & Electronics (TIME) Practice.
Regulators in Europe should also play a more active role. In Asia, the US and the Middle East, governments and
regulators have actively supported FFTB/H deployment by co-financing fibre rollouts o