The technological transition that connectivity developments are demanding for this century is already unstoppable. Throughout the European Union, investments are already being seen as strategic movements for the short term. Not only by telecommunications operators who, until now, have dominated the market. But also institutional investors, neutral operators, as well as those responsible for the deployment of infrastructure.

Over the past five years, fibre optic has taken on a significant role in terms of deployment, coverage and generalised usage. The socio-economic situation caused by the COVID-19 pandemic during 2020 has accelerated many trends that were already strong in the lead up to the period. But it’s important to look to the near future to analyse the state of play, both in a European context and in Spain’s national market more specifically.

• More European focus on domestic fibre optic

Investment in fibre optic for European premises and households (FTTP-FTTH) will experience a notable boom throughout 2021 and 2022. Countries that seem to be spearheading this push in Europe include Germany, Poland and the UK. This is evidenced by a report from DLA Piper, entitled The Future of Fibre Connections: Fibre Optic Investment Trends in Europe in 2021.

The reasons behind this desire among European stakeholders to invest include, according to the report, high demand from end users, greater availability of incentives from various national governments, as well as low penetration rates in these countries. It’s possible that the upturn in demand is also due to new dynamics around working from home and the reality of the pandemic.

As such, 23% of investors consulted as part of the DLA Piper report cite this as a reason. However, technology transfer and the need for transversal connectivity in both the medium and longer term cannot be ruled out as fundamental drivers, according to experts.

• Spain’s national fibre optic network, one of the most well-developed networks in the whole of Europe

Spain’s fibre optic network is in fantastic health. This is proven by its deployment rate of 80%. That figure puts the country well above the European average, which currently stands under 30%.

All this means we can seriously forecast full coverage – with fibre optic reaching 100% of the country – around the year 2024. And although the Spanish fibre optic market has traditionally been dominated by private investment, the introduction of new investor profiles interested in connectivity can bring more of an ‘edge’ and some dynamism to the arena.

According to Paula González de Castejón, IPT Partner at DLA Piper Spain, “as well as private investment, it will be necessary to rely on public investment schemes designed as part of the European Digital Agenda”.

• The definitive leap in Spain’s connectivity: fibre optic overtakes ADSL

According to a number of sources connected to the country’s main telephone operators, by 2025, there will no longer be any homes in Spain with ADSL connections. All broadband connections will be dominated by fibre optic.

In fact, according to the latest updates to the figures as released by Spain’s National Commission on Markets and Competition (CNMC), in 2021, 516 ADSL exchanges will be shut down across the country. Because of the statutory requirements on prior communication, with a period of one to five years’ notice needed, the CNMC is also set to monitor a further 823 remaining closures due to take place between 2022 and 2026.