European Commission Digital Economy and Society Index: what’s the news on broadband?

Fixed very high capacity networks (VHCN) covered 70% of EU homes in 2021, up from 60% in the previous year, largely due to FTTP deployments. Coverage of VHCNs, which are gigabit-capable FTTP and DOCSIS 3.1 / HFC or better networks, increased from 19.5% to 70% between 2014 and 2020, almost doubling in the last three years, thanks to the upgrade of cable networks to DOCSIS 3.1 and accelerated FTTP deployments. Malta is in the lead with 100% VHCN coverage, followed by Luxembourg, Denmark Spain, Latvia, the Netherlands and Portugal which all have coverage higher than 90%.

Although progress has been made in recent years, a ‘digital divide’ between rural and urban areas persists, with especially large differences when it comes to VHCNs. 8.5% of rural households are not covered by any fixed network, and 32.5% are not served by NGA technology. However, 4G is widely available in rural areas (99.6%) and rural FTTP coverage has grown considerably over the last decade (from 26% in 2010 to 34% in 2021). Minimising deployment costs, a predictable regulatory environment, and incentivising investment will play an important role in accelerating universal availability of gigabit connectivity and 5G mobile coverage.

The EU has approved € 16 bn RRF reforms and investments to roll out digital connectivity networks over the next four years, especially in rural regions. Moreover, the EU will also leverage connectivity investments through the new Cohesion Funds, the EAFRD, InvestEU and EIB loans, and CEF Digital, a programme directly managed by the European Commission’s HADEA Agency. This will grant € 2bn for high-performance connectivity infrastructures over a seven-year period years.

5G coverage grew substantially from 14% in 2020 to 66% of populated areas in 2021. The highest 5G coverage levels – all above 90%! - were recorded in Italy, Denmark and the Netherlands.