Industry analysts Ovum recently completed a study into the socio-economic impact of European FTTH deployments, undertaken with the FTTH Council Europe. The study is the first of its kind to closely investigate how FTTH enables socio-economic growth in European communities and municipalities.

The study was conducted in the under-served rural areas of Sweden which had a number of small communities with very high penetration of FTTH and FTTB. Carried out using a wide range of metrics that determine relative ‘prosperity’ and its correlation to FTTH deployments at the local/regional level, the study concluded that FTTH positively contributes to improvements in socio-economic metrics such as quality of life, improved productivity, better public services and increased employment.

“The study is the first of its kind to show a correlation between a large percentage of businesses and homes connected with fibre and a link to benefits and cost savings for education, health and public administration,” says vice president of communication components Lynn Hutcheson.

“The study itself included extensive consumer survey’s, regional case studies and interviews with representatives from government agencies, municipalities, network associations and network operators.”

The findings demonstrate clear social and economic improvements in areas with higher FTTH and FTTB penetration. Benefits included better e-learning and health services, significant reductions in telecoms costs and a closer collaboration between municipalities and public-service providers.

Thomas Kallstenius from the FTTH Council Europe’s Market Intelligence Committee explains: “The study has successfully demonstrated that fibre to the building or home at a municipal level has significant positive impact on local economies from both a social and economic perspective.

“The clear network superiority of fibre provides a platform for improving employment levels; attracting small businesses, encouraging remote workers and ultimately helping to raise the regional knowledge economy. Couple this with the benefits to public services such as enhanced e-learning opportunities and improved health and home care by enabling services such as remote diagnostics and it becomes clear that improved communications can provide significant socio-economic benefits to European communities.”

Joeri Van Bogaert, president of the FTTH Council Europe, concludes, “This study provides even further depth to the business case for FTTH.

“FTTH’s ability to enhance social inclusion and create a positive impact on social and economic welfare for consumers is a key consideration for today’s telecommunication and investment communities and the results of this study provide a clear message. Furthermore, and most interestingly, the section of society which was afforded most socio-economic benefit from FTTH was that with the lowest income. In a time of financial downturn where concerns grow daily regarding the next economic stimulus package, these results indicate that where limited resource and distance remain barriers to quality of life, next generation broadband can provide the social and economic stimulus needed today.”