DIETER STUDER RURAL FTTH ROLLOUT
CHALLENGES AND BEST PRACTICES RURAL FTTX ROLLOUTS: Specifics may vary due to differences in geography, governance, and market dynamics, but rural Fibre-to-the-X (FTTx) rollouts across the USA, UK, and Europe face similar challenges. Dieter Studer , Market Manager North America, R&M, examines the key stumbling blocks and best practices that help overcome them in the UK and EU – which may also prove successful in the USA.
GEOGRAPHIC AND LOGISTICAL ISSUES. Rural areas everywhere often feature difficult-to-traverse landscapes, limited existing infrastructure, and sparse populations – that means higher per- user costs. Dense road networks and historical infrastructure can further complicate planning. The UK faces hurdles in connecting remote islands, uplands, and rural villages, for example. Europe’s diverse geography, from the Alps to sparse or fragmented population in Scandinavia and Eastern Europe, poses a different range of challenges. HIGH DEPLOYMENT COSTS AND LIMITED ROI Rural fibre deployment is costly everywhere due to high distances and lower customer density. Low population density in rural areas makes business cases difficult. UK operators tend to prioritise urban and suburban regions due to higher returns. While overall costs in the UK are lower, they remain disproportionately high relative to potential returns. Costs vary very significantly between European countries, depending on labour and infrastructure density. EU grants and subsidies play a critical role in offsetting these costs. ROI challenges are particularly acute in less wealthy countries where rural populations can’t afford premium services.
REGULATORY AND PERMITTING HURDLES Across all global rural regions, permitting delays and bureaucratic complexities are common barriers. Securing access to utility poles, rights-of-way, and environmentally sensitive areas can be a lengthy process. Despite streamlined policies like the Electronic Communications Code, slow planning approvals and private land access issues hinder UK rollouts. In Europe, regulatory frameworks differ across EU member states. Some countries are notorious for bureaucratic delays, while others operate far more efficiently. EU-level directives aim to harmonise processes - but can’t always address localised issues. BEST PRACTICES THAT HELP OVERCOME CHALLENGES Public-Private Partnerships (PPPs) and government funding: Across all regions, PPPs offer common benefits. PPPs combine public funding and regulatory facilitation with private sector expertise to address high costs and limited ROI. Public funding can de- risk investment for private companies, making rural deployments financially viable. Governments benefit from private partners’ technical and managerial expertise, scalable technologies and innovative solutions tailored to diverse environments, ensuring efficient project execution.
Government initiatives are key to making investments financially viable for private providers and partnerships with municipal utilities help reduce deployment costs. In the UK, programs such as Project Gigabit subsidise rural rollouts and local councils offer access to public infrastructure, such as streetlights and ducts, to lower costs. EU funding mechanisms like the Connecting Europe Facility (CEF) and European Regional Development Fund (ERDF) co- finance rural projects.
Streamlined administrative procedures:
Simplifying permitting and standardising regulations can accelerate deployments and reduce costs. Policies such as “dig-once” initiatives encourage shared infrastructure use. Pre-approved wayleaves and national planning frameworks in the UK and Europe reduce administrative hurdles. EU directives such as the Broadband Cost Reduction Directive have harmonised rules to streamline cross-border projects. Infrastructure sharing: Sharing infrastructure such as utility poles and ducts reduces duplication and deployment costs. Partnerships between ISPs and utility companies facilitate shared use of infrastructure. Collaborative models reduce individual operators’ CAPEX, making
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| ISSUE 40 | Q1 2025
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