As the digital landscape evolves, the demand for reliable, high-speed connectivity is increasing. European businesses are seeking ways to enhance their communication infrastructure to support remote work, cloud computing, and the Internet of Things (IoT).
Against this backdrop, fiber optic-based connectivity and satellite network-based connectivity stand as notable means of enhanced communication, which are set to catalyze the future of business connectivity.
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The Rise of Fiber Optics in the EU
Fiber optic technology has been the cornerstone of high-speed internet for decades, but it is now gaining further traction. In its February 2024 white paper entitled, “How to Master Europe’s Digital Infrastructure Needs”, the European Commission advocates for a timeline to transition from legacy copper networks to newly deployed fiber networks. The Commission recommends that 80% of subscribers complete this migration by 2028, with the remaining 20% by 2030. Additionally, it calls for enhanced EU competencies in spectrum management, enabling the EU to engage in spectrum planning for future use cases and coordinate auction timings to facilitate the successful rollout of 5G and ensure the timely deployment of 6G.
Moreover, the European Commission’s inaugural report on the state of the Digital Decade revealed that the EU must accelerate efforts to meet its connectivity targets. Currently, complete fiber networks (FTTP), essential for providing gigabit connectivity, have reached 56% of households. While basic 5G coverage is available to 81% of the EU population, the deployment of 5G standalone networks—referred to as ‘full’ 5G due to their ability to support advanced features and innovative applications—is estimated to sit below 20% in populated areas across the EU.
Full fiber coverage varies significantly among EU-27 member states: 14 countries have already surpassed 70% coverage, while 22 exceed 50%. The “State of Digital Communications 2024” report, released by the European Telecommunications Networks Operators’ Association (ETNO), predicts that by the end of 2023, FTTH coverage (excluding Fiber-to-the-Building, also known as FTTB) will reach 63.4% of the EU population.
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Fiber Projects Across Europe
Across Europe, ambitious fiber projects are transforming digital infrastructure, driving enhanced connectivity, data capacity, and business connectivity.
A new submarine fiber optic project aims to deploy a new high-capacity data backbone across the UK, Netherlands, Germany, Denmark, and Norway, enhancing capacity and redundancy in Northern Europe. Announced during the Submarine Networks EMEA Conference in London, this ambitious 1,400 km repeated submarine fiber optic cable project will fortify critical infrastructure security through comprehensive armoring and burial, linking these five Northern European nations.
Notably, it will mark the first submarine fiber optic cable to land on Germany’s North Sea coast in over 25 years. Following the decommissioning of previous systems like TAT-14 and SEA-ME-WE 3, it will also become the only cable connecting Germany to North-Sea submarine cable networks and beyond. The 48-fiber pair system is designed to deliver a minimum overall capacity of 1.3 Pbps.
United Fiber Greece has been instrumental in driving United Group’s infrastructure strategy, achieving a 20% Fiber-to-the-Home (FTTH) penetration on its own network, compared to the national average of 8%. In Bulgaria, United Group operates the country’s largest FTTH network, reaching 50% of households, with plans to extend this to 67% by 2028. Meanwhile, in Croatia, the Group is adding around 80,000 households per year, with the goal of reaching 40% by 2028. In Slovenia, United Fiber owns the second-largest gigabit-enabled network, covering about 50% of households.
Moreover, a new entity, FibreCo, plans to roll out a fiber network reaching 3.5 million premises across Spain.
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The Satellite Landscape in the EU
The Treaty of Lisbon established a space policy as a shared responsibility between the European Union (EU) and its Member States. Following the treaty’s implementation, the European Council 2013 endorsed the development of next-generation governmental satellite communications through collaboration between the Member States, the European Commission, and the European Space Agency (ESA). Around the same time, the European Defence Agency (EDA) launched the ‘GSC demo’ project, demonstrating a shared capability for providing secure satellite communications services unavailable commercially. This initiative involved 15 Member States, with Norway also participating. The project resulted in critical recommendations addressing infrastructure security and user requirements to encourage adoption.
These early efforts contributed to establishing a formal EU governmental satellite communications policy, funded under the 2021-2027 multiannual financial framework (MFF). By 2017, the European Commission noted that while no formal EU policy for governmental satellite communications existed, such services were increasingly recognized as critical for EU initiatives, especially in crisis management, disaster response, and surveillance operations.
The importance of this policy was further underscored by the inclusion of the European Union Governmental Satellite Communications (GOVSATCOM) initiative within the 2021-2027 EU space programme (Regulation (EU) 2021/696). GOVSATCOM aims to provide secure satellite communication services under civil and governmental control, offering capabilities to support EU and Member State authorities in managing critical security missions and infrastructure.
Additional support for GOVSATCOM has come from various EU programmes, including Horizon 2020, which backs the ‘Entrusted’ project (2020-2023) involving 18 participants. The project aims to assess evolving user needs and translate them into prioritized requirements for future GOVSATCOM services.
EU governmental satellite communication services currently depend on a few geostationary (GEO) satellites. These satellites, which differ from those used for navigation (such as Galileo) or Earth observation (like Copernicus), are controlled by a few Member States through direct ownership or public-private partnerships. However, the existing infrastructure presents two key challenges: its coverage is limited mainly to Europe, leaving other regions unserved, and it is primarily used for military purposes, which can limit compatibility with broader civilian or complementary services.
The European Parliament plays a crucial role in helping the EU deploy its satellite constellation. Satellite communication has become integral to everyday life, whether it be for watching TV, navigating with GPS, or using precision technology in agriculture. In 2023, the EU introduced a regulation to develop IRIS² (Infrastructure for Resilience, Interconnectivity and Security by Satellite)—a multi-orbital satellite constellation. This EU-owned system, built through a public-private partnership, will primarily serve government services, with commercial services from the private sector following later.
During negotiations for the European Commission’s 2022 proposal, Parliament advocated for two key objectives: advancing the digital and ecological transitions. It pushed for satellite development to ensure “affordable access” and improve connectivity across the EU and the world. Additionally, Parliament emphasized the need for compliance with environmental sustainability by introducing amendments to minimize greenhouse gas (GHG) emissions during the satellite infrastructure’s development and deployment and including a plan to address space debris.
The European Commission was expected to finalize a contract with companies to develop the infrastructure in March 2024, with the entire operation of IRIS² planned by 2027, though this has faced delays.
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The Role of EU Telecom Operators in Business Connectivity
Telecom companies are making substantial investments to expand fiber optic networks and improve satellite capabilities, aligning with the EU’s ambitious goal of providing gigabit internet access to every household by 2025. For example, Deutsche Telekom is working to connect over 10 million households in Germany by 2024 (currently, the company’s fiber optic network spans over 750,000 kilometers across Germany), while Altice is focusing on significant fiber optic deployments in France and Portugal.
To maximize the advantages of fiber and satellite networks, telecom operators are forming partnerships with satellite service providers. These collaborations enhance service offerings, enabling companies like Vodafone to deliver more comprehensive connectivity solutions, particularly in rural areas through satellite partnerships.
EU telecom operators are increasingly focusing on customer needs by developing tailored connectivity solutions that integrate both fiber and satellite technologies. For instance, Orange offers customized services through its Orange Business Services, while Telefónica is exploring edge computing to enhance smart home and business applications.
As digital transformation accelerates, telecom operators are investing in emerging technologies such as 5G, edge computing, and IoT solutions, positioning themselves as key players in the evolving digital landscape. Vodafone is committed to rolling out 5G across Europe, creating smart solutions for businesses, and enhancing IoT offerings. Telenor is also focusing on global partnerships to expand mobile broadband and is committed to integrating sustainable practices into its operations.
Integrating Fiber and Satellite Networks
As the future of business connectivity evolves, many organizations are adopting a hybrid approach that combines fiber optics and satellite networks. This strategy leverages the strengths of both technologies, offering a robust and flexible framework that adapts to changing business needs. One key benefit of this approach is enhanced reliability. By creating redundant connections, businesses can ensure continuous operation, minimizing downtime if one network encounters issues. In today’s fast-paced environment, where uninterrupted connectivity is crucial, this resilience is essential for maintaining productivity.
A hybrid connectivity strategy also provides cost-effective scalability. Companies can use fiber optics in high-demand urban areas while relying on satellite connections in more remote locations. This balance optimizes costs without compromising performance, ensuring all regions, regardless of geographical challenges, have adequate connectivity. Additionally, integrating both technologies improves service quality by allowing businesses to customize solutions based on specific needs, such as low latency for real-time applications or high bandwidth for data-heavy tasks. This tailored approach enhances operational efficiency and keeps businesses competitive in a rapidly changing market.
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Fiber in the Sky: A New Direction?
A hybrid approach could be essential for the Fourth Industrial Revolution. The space industry is turning to Very High Throughput Satellites (VHTS) and mega-constellations to complement, and even compete with, terrestrial fiber networks. While ground networks can be reconfigured in real-time to manage data flow and reroute traffic, current satellite systems lack this flexibility, functioning as isolated units.
To boost the capabilities of satellite networks, extensive ground station infrastructure is required, however, this introduces challenges such as spectrum constraints. Radiofrequency (RF) bandwidth, commonly used for uplink and downlink, has become a bottleneck limited by regulations in certain regions. Optical communication offers a promising solution, providing much higher data link capacity than RF. However, optical signals face interference from Earth’s atmosphere, such as cloud cover, which demands multiple optical ground stations to maintain reliable connectivity.
The concept of “Fiber in the Sky” aims to overcome these challenges by creating a reconfigurable satellite network using high-capacity, optical inter-satellite links. Instead of each satellite relying on individual ground stations, a global mesh of interconnected satellites could relay data, bypassing atmospheric disruptions and optimizing connectivity across the globe.
HydRON (High Throughput Optical Network) is leading the development of this vision, aiming to create the first fully optical space network by 2025. HydRON will integrate space-based optical communication with terrestrial fiber networks, forming a seamless “Fiber in the Sky” system. This innovative network will allow data to be routed through space or across terrestrial networks, depending on the situation and demand, providing massive data transmission capacity at terabit levels, consequently, improving business connectivity.
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Conclusion
The future of business connectivity in the EU is set to be shaped by the interplay between fiber optics and satellite networks, with EU telecom operators at the forefront of this transformation. While fiber optics will continue to serve as the backbone of high-speed internet, satellite technology is emerging as a vital alternative for businesses in remote areas.
By leveraging the strengths of both technologies and fostering collaboration between operators and service providers, organizations can create robust and flexible connectivity solutions that meet their evolving needs. As we move forward, the ability to adapt and integrate these technologies will be key to thriving in an increasingly digital economy, ultimately enabling businesses to innovate and grow in a competitive landscape.