Fuelling Competition

Cable Europe Photo: Ezequiel Scagnetti

A connected, digital future for Europe is a goal that is shared equally by institutions, politicians, industry and citizens.  That much is certain.  Less tangible is the transformational recipe of ingredients needed to make this happen.

One core ingredient in the mix is clearly going to be competition between independent network infrastructures.  This stimulates innovation, ensures great value for end users, drives markets forwards.  In the context of a digital society, it’s the competition around infrastructure which lays the foundation for success.

We’ve long known that the presence of challenger technologies like cable broadband stimulates market performance to the benefit of consumers.  Now, new data collated by Arthur D Little shows just what a key role cable plays in the competitive dynamics of digital markets.

The statistics prove beyond doubt that when cable is present, this pushes telco incumbents to deploy their own next generation technology such as VDSL (very high bit-rate subscriber lines) or FTTP (fibre to the premises).  In short, there is a strong correlation between cable coverage and VDSL / FTTP coverage.

We also see evidence that incumbents invest more per household in cable markets.  On average over 2010-2014, in European cable markets, incumbents will invest around €73 per household in fixed networks.  In non-cable markets this average falls to €47 per household.

So it’s very clear that cable, the main challenger to telecom operators, fuels infrastructure based competition.  Thriving competition makes for thriving markets.  And that’s great news for a connected Europe.


Caroline van Weede
Managing Director
Cable Europe

October 2016