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According to the report of the law firm DLA Piper, Europe is facing large investments related to the construction of FTTP fiber optic network within two years. This will also benefit Poland, which is considered to be the third market with the largest investments planned.
Poland in the top three
The lockdown pandemic and the trend of switching to remote working increased the appetite of investors for building a fiber optic network. Especially in the case of providing access to end user locations. Among the most attractive markets for FTTP investments in Europe, Poland was ranked third with 15%. According to the respondents, the two countries with the largest planned investments are Germany (26%) and the UK (21%). These are the most important conclusions of the Building a Full Fibre Future: European FTTP Investment Trends 2021 conducted by TMT Finance for DLA Piper.
According to DLA Piper, the FTTP market is an attractive place to invest compared to other sectors. Undoubtedly, a pandemic and the related remote work had a great impact on the increased interest. The forced sending of employees to work from home strengthened the demand for connections with ultra-fast broadband access, and this encouraged investors to act in this direction – this is what 28% of respondents believe.
Two years of big investments
In the case of investments, according to three quarters of respondents (78%), the attractiveness of FTTP infrastructure in Europe will increase especially in the next two years. During this period, 14% of them intend to invest over 1 billion euros and 23% between 500 million and 1 billion euros.
In the opinion of the majority (84%), the funds for investments will mainly come from infrastructure funds. A decrease is expected in the case of telecommunications operators’ expenditures (from 44% to 29% compared to the previous 24 months). The pension funds are expected to increase their investment activity in FTTP from 20% to over 27%.
Among the concerns, the investors most anticipate problems related with strong investment competition. This is the opinion of 40% of respondents. Second place is taken by regulatory complexity (26%) and competition with other investors (26%).
The survey was conducted in the third quarter of 2020 by TMT Finance for DLA Piper. The survey involved 62 managers representing investors, lenders, operators and advisors to the FTTP sector, based in the UK, France, Ireland, Germany, Austria, Switzerland, Spain, Italy, Sweden, Denmark, Poland, as well as in the United States, Canada and Japan.