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Copper switch-offA European benchmark
Analysis
WIK-ConsultIlsa Godlovitch
Peter KroonSonia Strube Martins
Fabian Eltges
February 2018
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Executive summary
There is limited progress towards copper switch-off in Europe
From the countries studied, only EE has made major steps to
switch customers from copper to FTTH, while switch-off from
copper to wireless has progressed in SE
More progress has been made towards PSTN switch-off (a
prerequisite for copper switch-off). PT, EE, NL and DE should
achieve all-IP by 2020, but other countries such as FR, PL and UK
are not set to achieve all-IP until 2025
The reasons for the limited switch-off plans are diverse. In
some countries FTTH has yet to be widely deployed. In others strict
controls on exchange closure may be delaying switch-off. A lack of
understanding of the benefits of fibre and challenges in switching
to a fibre operator may also be hampering consumers from migrating
in other cases.
Member states and regulators could usefully act to enable PSTN
switch-off, remove regulatory barriers to copper switch-off, and
ensure that consumers are informed about which offers are based on
full fibre, and its benefits
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Despite having several countries with extensive fibre coverage,
Europe has been slow to switch-off copper
In Australia, copper switch-off began in 2014 in conjunction
with the deployment of the NBN, and acquisition by the NBN Co of
Teltra’s copper and cable network. Customers in “NBN ready” areas,
have 18 months notice to
switch to the NBN (a mix of FTTH, FTTC and cable), before the
legacy copper network is switched off.
As of Dec 2017, NBN Co reported that around 75% of households
had connected to its network within the 18 month migration
window
In Oct 2018, Verizon announced that it would phase out copper
for FTTH in parts of 6 US states. Customers will be migrated by a
technician, with no change to voice prices and a special offer for
fibre-based broadband (Fios)
In New Zealand, there are plans to allow operators to start
withdrawing services in “fibre-ready” areas from Jan 2020
Global overview
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Of the countries studied, Estonia has made the most progress
towards copper switch-off
Incumbent Telia completed the PSTN switch-off process in July
2017 (2.5 years after the programme started)
70% of copper exchanges were switched off at end 2018 All ADSL
connections will be switched off by end 2020 –
moving to 50% fibre, 40% FTTC/G.fast and 10% fixed mobile
Telia expects to benefit from lower fault rates and increased
consumer satisfaction as well as considerable energy and space
saving
The process was facilitated by the prior PSTN switch-off (which
supported ‘plug and play’ installation of new routers with POTS
port for old equipment), short notice periods for exchange closure
(6 months), limited reliance on copper access and one to one
contact with businesses
Spain and Sweden also have active programmes in place
European leadersEstonia, Spain, Sweden
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The Netherlands has been a pioneer in PSTN switch-off, starting
its all-IP programme in 2007
In 2016 85% of POTS customers had been migrated. KPN is aiming
to achieve a complete transition to VoIP by 2019
There is no formal programme for copper switch-off yet. However,
in November 2018, KPN announced 6 pilot areas for switch-off to
test the process and gain experience
Pilots will focus on overlay areas (copper and fibre), where the
majority of customers use fibre.
There are also small pilots focused on business customers aimed
at testing specific technical challenges
Legacy equipment is a key challenge. KPN is preparing a campaign
to inform residential and business customers of the consequences of
migration on legacy equipment.
In its 2018 decision, NRA ACM allowed a 1 year notice period for
exchange closure if a reasonable alternative wholesale product was
provided to LLU
Host countryNetherlands
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py
Switch-off progressCopper
Limited progress towards copper switch-off Estonia and Sweden
are clear leaders amongst the countries studied No concrete plans
in 5 of 10 countries
R=regional switch-off, P=partial switch-off (feeder segment)
% copper exchanges switched off
2018 2020 2023 2030Estonia 2015 70% RSweden 2009 42%Spain 2%
7.40%Portugal R 75%Italy 0% P 60%
Source: WIK-Consult based on interviews
FTTH coverage
FTTH/B coverage % households
2016201720182019202020212022202320242025
Estonia
France
Germany
Italy
Netherlands
Poland
Portugal
Spain
Sweden
UK
FTTH/B take-up % households 2018
Estonia
France
Germany
Italy
Netherlands
Poland
Portugal
Spain
Sweden
UK
Switch-off_status
PSTN switch-off status
% incumbent voice lines provided through VoIPPlans
2010201120122013201420152016201720182019202020212022202320242025
Estonia100%
Germany50%100%
Netherlands200685%100%
Portugal44%100%
Spain200920%75%In conjunction with copper switch-off
France73%>97%
Poland27%100%
UK0%100%
Sweden50%No plans. Only in context of regional switch-off
Italy21%PSTN switch-off in context of partial copper
switch-offTargets for PSTN switch-off? Will the PSTN switch-off be
nationwide or only in the areas of partial copper switch-off?
Country% incumbent lines VoIP
Estonia100%
Germany100%
Netherlands95%
Spain75%
France73%
Sweden50%
Portugal44%
Poland27%
Italy21%
UK0%
Copper switch-off status
% copper exchanges switched offPlans
201520162018202020232030Replacement technologyComments
Estonia201570%RFTTH (50% subs), fixed wireless (10% subs) FTTC
(40%)Regional full switch-off, remainder partial (primary network
only)Check start date and % exchanges closed ay 2020
Sweden200942%Fixed wireless
Spain2%7.40%FTTHRegional full switch-off started 2009, no target
end-dateWhen did switch-off begin?
PortugalR 75%FTTH% copper exchanges shut down today
Italy0%P 60%FTTCPartial switch-off, primary network only
Netherlands0%FTTH (pilot)Pilot in 2018
France0%No plansNo plans
Germany0%No plansNo plans
Poland0%No plansNo plans
UK0%No plansNo plans
Replacement technology
EstoniaFTTH (50% subs), fixed wireless (10% subs) FTTC (40%)
SwedenFixed wireless
SpainFTTH
PortugalFTTH
ItalyFTTC
NetherlandsFTTH (pilot)
FranceNo plans
GermanyNo plans
PolandNo plans
UKNo plans
% incumbent voice lines via VoIP 2018
EstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUKEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUKEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUK%
incumbent lines
VoIPEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUK110.950.750.730.50.440.270.210
Switch-off_status (2)
PSTN switch-off status
% incumbent voice lines provided through VoIPPlans
2010201120122013201420152016201720182019202020212022202320242025
Estonia100%
Germany50%100%
Netherlands200685%100%
Portugal44%100%
Spain200920%75%In conjunction with copper switch-off
France73%>97%
Poland27%100%
UK0%100%
Sweden50%No plans. Only in context of regional switch-off
Italy21%PSTN switch-off in context of partial copper
switch-offTargets for PSTN switch-off? Will the PSTN switch-off be
nationwide or only in the areas of partial copper switch-off?
Country% incumbent lines VoIP
Estonia100%
Germany100%
Netherlands95%
Spain75%
France73%
Sweden50%
Portugal44%
Poland27%
Italy21%
UK0%
Copper switch-off status
% copper exchanges switched offPlans
201520162018201920202021202220232030Replacement
technologyComments
Estonia201570%RFTTH (50% subs), fixed wireless (10% subs) FTTC
(40%)Regional full switch-off, remainder partial (primary network
only)Check start date and % exchanges closed ay 2020
Sweden200942%Fixed wireless
Spain2%7.40%FTTHRegional full switch-off started 2009, no target
end-dateWhen did switch-off begin?
PortugalR 75%FTTH% copper exchanges shut down today
Italy0%P 60%FTTCPartial switch-off, primary network only
Netherlands0%FTTH (pilot)Pilot in 2018
France0%No plansNo plans
Germany0%No plansNo plans
Poland0%No plansNo plans
UK0%No plansNo plans
Replacement technology
EstoniaFTTH (50% subs), fixed wireless (10% subs) FTTC (40%)
SwedenFixed wireless
SpainFTTH
PortugalFTTH
ItalyFTTC
NetherlandsFTTH (pilot)
FranceNo plans
GermanyNo plans
PolandNo plans
UKNo plans
% incumbent voice lines via VoIP 2018
EstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUKEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUKEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUK%
incumbent lines
VoIPEstoniaGermanyNetherlandsSpainFranceSwedenPortugalPolandItalyUK110.950.750.730.50.440.270.210
Barriers
(Dis)incentivesPractical and regulatory challenges
Limited incumbent FTTH/BIncumbent prefers not to access
FTTHAccess seekers reluctant to switchCustomer reluctanceChallenges
legacy equipmentStrict conditions to close exchangeCopper access
obligationsLine powering obligations
EE
FR
DE
IT
NL
PL
PT
ESSettled 2009
SE
UKNot settledSettled 2018
Migration
Notice period for exchange closureWholesaling obligations linked
to exchange closure
EE6 monthsNone, but fibre wholesale access is available on
similar conditions to copper wholesale access
FR5 years - shorter period may be requested for copper in
"fibred" zones, but 5 years applies to PSTN switch-offWholesale
offers must allow altnets to replicate „in an equivalent manner“
offers available on the copper network
DE1 year notice to withdraw LLUAlternative wholesale offers must
be made - in practice cabinet VULA, local bitstream
IT3 years if no LLU, 5 years if LLU - can be reduced to 3 if
suitable wholesaleTechnically and economically equivalent VULA
guaranteed for 2 years after switch-off
NL3 years or 1 if suitable wholesaleUnbundled FTTH, VULA FTTH or
WBA FTTH - KPN must offer different price model if scale is
obstacle for access seekers
PL12 monthsNo specific wholesale requirements
PT5 years or 3 if equivalent wholesaleProducts "equivalent" to
copper wholesale
ES5 years (LLU), 1 year (no LLU)No specific wholesale
requirements
SE5 years for exchanges with co-located operators, but
commercial agreements made with 18 month noticeNo specific
wholesale requirements
UKNo established rulesNo estabilshed rules, but WLR obligation
in place until 2020
Regulation
FTTH access obligations Regulatory pricing approach FTTH vs
copperRegulated FTTH wholesale price vs copper
EENationwide FTTH accessCost-orientation based on top down
historic costs both both copper and fibre. Pricing is
similarSame
FRSymmetric FTTH terminating segment obligationsCost-orientation
with risk adjustment on WACC for FTTH access. Long term pricing
(IRU) offered alongside monthly rentalHigher €15/~€9.50 unbundled
access
DENationwide FTTH bitstream obligation on DTFTTH bitstream not
yet regulated in practice. NRA proposal for replicability test vs
cost-orientation with mark-up for FTTCHigher
ITSymmetric FTTH terminating segment + nationwide SMP FTTH
bitstream + VULA on TI Differentiated WACC for FTTH VULA vs FTTC
VULA reflecting risk presumptionHigher
NLNationwide FTTH unbundling SMP access obligation on KPNFTTH
unbundling cost-based with risk premium on WACC vs NRA presumption
of no premium for FTTC and copperHigher ~€19.50 vs ~€8 unbundled
access
PLSMP FTTH access (regional deregulation for BSA) alongside
symmetric obligationsSMP copper and FTTH access on basis of
cost-orientation, no risk premium Lower ~€13 100Mbit/s vs ~€16
10Mbit/s
PTNo FTTH access obligationsNot relevantNot relevant
ESGeographic VULA SMP access obligation on TF (~65% HH)FTTH VULA
pricing based on replicability test vs cost-orientation for
copperHigher
SENationwide FTTH unbundling SMP access obligation on TeliaFTTH
unbundling pricing based on replicability vs cost-orientation for
FTTC/copperHigher
UKNationwide FTTH VULA SMP access obligation on BTFTTH VULA
pricing based on replicability test vs cost-orientation for
40Mbit/s FTTC and copperHigher
Pricing
Total cost/month (VAT excl.) of incumbent broadband connection
with telephone line rental or cable TV subscription Autumn 2016 -
EC Broadband Internet Access Cost database
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The greatest progress has been made in Estonia, with 70% of
copper exchanges closed in 2018 and plans to remove copper access
for 60% of broadband subscribers by 2020
Spain has an active copper switch-off program to FTTH, but
numbers are limited
Slow process in Portugal with aim of 75% switch-off by 2030
Sweden has an active program, but focus on rural/wireless Planned
switch-off in Italy for feeder segment (FTTC)
Switch-off progressCopper
Copper switch-off incumbent replacement technologyEstonia FTTH
(50% subs), fixed wireless (10% subs) FTTC (40%)Sweden Fixed
wirelessSpain FTTHPortugal FTTHItaly FTTCNetherlands FTTH
(pilot)France No plans*Poland No plans*Germany No plans** UK No
plans**
New deployments * mainly FTTH, ** mainly FTTC, some FTTHSource:
WIK-Consult
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• Transition to all-IP is a pre-condition for copper switch-off,
but can occur independently• PSTN switch-off has been linked to
copper switch-off in IT, ES, SE,• PSTN switch-off pursued
independently of copper switch-off in UK, DE, NL, FR• As of 2018,
full transition to VoIP with PSTN switch-off had occurred in
Germany and Estonia,
with near full transition in the Netherlands• In contrast, there
is limited VoIP in the UK except for new build/FTTH and some
business. Italy
and Poland also start from a low base of VoIP lines
Switch-off progressPSTN
% incumbent voice lines provided through VoIP2012 2013 2014 2015
2016 2017 2018 2019 2020 2021 2022 2023 2024 2025
Estonia 100%Germany 50% 100%Netherlands 2006 85% 100%Portugal
44% 100%Spain 2009 20% 75%France 73% >97%Poland 27% 100%UK 0%
100%Sweden 50%Italy 21%
Source: WIK-Consult based on BEREC 2016 study and 2018
interviews
Source: WIK-Consult based on interviews
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Telia, EE reports copper switch-off enabled: Lower fault rates,
increased satisfaction and hence
lower churn Considerable energy saving and space saving as
Telia
was able to close exchanges
Telia, SE reports copper switch-off enabled: Lower maintenance
cost compared with copper Dismantling of 500,000 poles (but limited
savings) 100 engineers to be moved from copper to fibre in 10
years
Copper switch-off Benefits to operators (1)
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Telefonica, ES reports that significant cost savings and
efficiencies are possible from copper switch-off- A fibre PoP
covers the equivalent of 4 copper switches- Access technology
equipment for fibre occupies 15% of
the space occupied by copper; and- Copper switch-off saves 60%
energy cost
• Verizon, US: “fibre is overall 60% cheaper compared to copper”
Real estate 60-80% savings Energy 40-60% savings Reliability; fibre
is 70-80% more reliable than copper.
60% fewer costly truckrolls and savings of 40-60% on
maintenance
Copper switch-off Benefits to operators (2)
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• In a 2017 representative survey of consumers in the fibre-rich
Swedish market, WIK found that 82% of FTTH customers were happy
with their service compared with only around 50% of DSL
customers
• 87% of FTTH users highlighted high bandwidth as a benefit of
FTTH
• The range of services and value for money were also cited
Copper switch-off Benefits to customers (1)
Swedish consumers: perceived benefits of fibre
Source: WIK-Consult 2018 socio-economic impact of FTTH
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• FTTH users in Sweden were more likely to be online daily, and
were more active on the Internet than users in Germany
• More than 30% of Swedes surveyed streamed all their music and
video content online
Copper switch-off Benefits to customers (2)
Source: WIK-Consult 2018 socio-economic impact of FTTH
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• Entry level prices for 100Mbit/s in Sweden are priced at a
small premium to “basic broadband”
Copper switch-off Benefits to customers (3)
Source: WIK-Consult based on operator website
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• Copper switch-off requires the ability and incentive to switch
by the incumbent, challenger operators and customers
– Installation of FTTH incumbent and/or willingness by incumbent
to use competing FTTH infrastructure
– Availability of FTTH access for access seekers and a
willingness to migrate, or own FTTH (co-)investment
– Understanding of benefits of FTTH, willingness, and ability of
residential and business customers to migrate
• Incentives for operators and consumers to migrate can in turn
be influenced by regulatory approaches to access regulation and
pricing, migration and advertising standards
Copper switch-off Enablers & incentives
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• Switch-off also necessitates the removal of legal and
regulatory barriers which might unduly delay or prevent
switch-off
• Examples of regulatory conditions which could impede migration
from copper to fibre amongst otherwise willing parties include
– Unduly restrictive conditions for closing copper exchanges or
shutting down PSTN such as long notice periods and/or onerous
wholesaling requirements
– Obligations to continue to supply copper-based/analogue
wholesale products (through the market analysis) or retail products
(through USO conditions)
– Obligations for line powering to ensure service continuity in
the event of a power cut
Copper switch-off Regulatory barriers
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Copper switch-off Overview of barriers
Limited incumbent FTTH/B
Incumbent prefers not to access FTTH
Access seekers reluctant to switch
Customer reluctance
Challenges legacy equipment
Strict conditions to close exchange
Copper access obligations
Line powering obligations
EE
FR
DE
IT
NL
PL
PT
ES Settled 2009
SE
UK Not settled Settled 2018
(Dis)incentives Practical and regulatory challenges
Red: interviewees indicated significant barriers, Yellow: some
barriersSource: WIK-Consult based on 2018 interviews
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The leading country for copper switch-off to FTTH (Estonia)
benefits from incumbent FTTH deployment, absence of regulatory
barriers and limited wholesale copper reliance
The gradual pace of incumbent FTTH deployment and reliance on
copper upgrade technologies is a core factor delaying switch-off in
UK, DE and IT
Strict conditions or a lack of precise guidance on conditions
for exchange closure may be hampering switch-off in PT and FR. No
rules have yet been established in the UK
The reluctance of customers may be hampering switch-off in FR,
PL. This was managed in EE through “plug and play” equipment and
support for legacy equipment
Transitioning of critical legacy equipment continues to be a
concern in SE, PL, UK, NL
Copper access obligations such as WLR persist in the UK Line
powering obligations were a barrier to switch-off in
some countries, but this issue has now been addressed in all the
countries studied
Copper switch-off Overview of barriers
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Previous studies by WIK and others have suggested that access
regulation and the relative pricing of FTTH vs copper affect
incentives to invest and migrate
In theory, the most positive conditions for investment and
migration are copper and fibre wholesale and retail pricing which
are (a) sufficient to support investment; and (b) close to each
other once fibre is deployed. Limited or no copper access can also
ease the process of switching to FTTH for the incumbent
Two countries in the sample had similar or lower FTTH wholesale
charges compared with copper wholesale: EE and PL
Other countries had higher (sometimes significantly higher)
wholesale fibre rates compared with copper
There are too many other factors involved to draw conclusions
about the effects of wholesale pricing on migration from copper to
fibre from the countries studied
Copper switch-off Role of access regulation in incentivising
migration
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Copper switch-off Access regulation overview
FTTH access obligations Regulatory pricing approach FTTH vs
copper Regulated FTTH wholesale price vs copper
EE Nationwide FTTH access Cost-orientation based on top down
historic costs both both copper and fibre. Pricing is similar
Same
FR Symmetric FTTH terminating segment obligations
Cost-orientation with risk adjustment on WACC for FTTH access.
Long term pricing (IRU) offered alongside monthly rental
Higher €15/~€9.50 unbundled access
DE Nationwide FTTH bitstream obligation on DT FTTH bitstream not
yet regulated in practice. NRA proposal for replicability test vs
cost-orientation with mark-up for FTTC Higher
IT Symmetric FTTH terminating segment + nationwide SMP FTTH
bitstream + VULA on TI
Differentiated WACC for FTTH VULA vs FTTC VULA reflecting risk
presumption Higher
NL Nationwide FTTH unbundling SMP access obligation on KPN
FTTH unbundling cost-based with risk premium on WACC vs NRA
presumption of no premium for FTTC and copper
Higher ~€19.50 vs ~€8 unbundled access
PL SMP FTTH access (regional deregulation for BSA) alongside
symmetric obligations
SMP copper and FTTH access on basis of cost-orientation, no risk
premium
Lower ~€13 100Mbit/s vs ~€16 10Mbit/s
PT No FTTH access obligations Not relevant Not relevantES
Geographic VULA SMP access obligation on TF
(~65% HH)FTTH VULA pricing based on replicability test vs
cost-orientation for copper Higher
SE Nationwide FTTH unbundling SMP access obligation on Telia
FTTH unbundling pricing based on replicability vs
cost-orientation for FTTC/copper Higher
UK Nationwide FTTH VULA SMP access obligation on BT
FTTH VULA pricing based on replicability test vs
cost-orientation for 40Mbit/s FTTC and copper Higher
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• Voluntary migration by customers from copper to fibre is
influenced by the relative pricing of the products in relation to
their perceived value
• The perceived value is in turn affected by how broadband is
marketed to customers and how they are made aware of the difference
between copper, partial fibre, and full fibre
• Customers also need to be able to switch easily from a
practical perspective. This includes switching platforms, when
fibre is deployed by alternative operators
• Customers may be deterred from switching by the need for a
site visit or requirements to replace their legacy equipment.
Solutions which provide a “plug and play” option for consumers and
support legacy equipment eg EE could help alleviate these
concerns.
• As legacy equipment issues are related to the move from PSTN
to IP – pursuing PSTN switch-off could also be a helpful precursor
to copper switch-off
Copper switch-off Encouraging consumers
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• Similar retail prices can spur migration for consumers• Copper
is not actively marketed by the incumbent in
ES, PT and relative retail prices support voluntary migration
from ADSL to FTTH in FR, PT and SE
• FTTH is not widely available from incumbents in DE, IT and UK.
Incumbent pricing aims to facilitate migration from ADSL to
FTTC
Copper switch-off Relative retail prices
Blue=ADSL, Orange=FTTC/VDSL Red=vectored VDSL/G.fast,
Green=FTTH/B
Source: Broadband Internet Access Cost 2017 study for the
European Commission*Triple play offers
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• Once FTTH is deployed, migration conditions set by the
regulator have a direct effect on the timescale and ease of
achieving forced migration, which is likely to be needed towards
the end of the migration process to achieve full operational
benefits
• There was a large variation in the conditions in the countries
studied on switch-off notice periods:
– Switch-off leader EE benefits from particularly short notice
period of 6 months for exchange closure
– NL and DE allow 1 year notice to close exchanges if suitable
wholesale products are offered, but there is limited FTTH
coverage
– Other countries impose long deadlines of 3 years or more on
closing exchanges with co-located operators e.g. FR, PT, IT, ES
– No rules on exchange closure have yet been established in the
UK
• There were also differences in wholesaling approaches. While
some countries require specific products to be made available which
mimic copper-based access, others rely on existing commercial or
regulated solutions on the replacement technology
Copper switch-off Migration conditions
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Copper switch-off Migration conditions overview
Notice period for exchange closure Wholesaling obligations
linked to exchange closureEE 6 months None, but fibre wholesale
access is available on
similar conditions to copper wholesale accessFR 5 years -
shorter period may be requested
for copper in "fibred" zones, but 5 years applies to PSTN
switch-off
Wholesale offers must allow altnets to replicate „in an
equivalent manner“ offers available on the copper network
DE 1 year notice to withdraw LLU Alternative wholesale offers
must be made - in practice cabinet VULA, regional bitstream
IT 3 years if no LLU, 5 years if LLU - can be reduced to 3 if
suitable wholesale
Technically and economically equivalent VULA guaranteed for 2
years after switch-off
NL 3 years or 1 if suitable wholesale Unbundled FTTH, VULA FTTH
or WBA FTTH - KPN must offer different price model if scale is
obstacle for access seekers
PL 12 months No specific wholesale requirementsPT 5 years or 3
if equivalent wholesale Products "equivalent" to copper wholesaleES
5 years (LLU), 1 year (no LLU) No specific wholesale requirementsSE
5 years for exchanges with co-located
operators, but commercial agreements made with 18 month
notice
No specific wholesale requirements
UK No established rules No estabilshed rules, but WLR obligation
in place until 2020
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There has been limited progress towards copper switch-off in
Europe thus far
There are only a few examples of active replacement of copper
with FTTH e.g. Estonia, Spain. Other switch-off cases involve
migration to FTTC (Italy) and wireless connectivity in rural areas
(Sweden)
Migration to FTTH is most likely where FTTH is prevalent and
supported by all operators, consumers are aware of its benefits,
and there are no regulatory barriers to switching
The main factor delaying migration to FTTH in several countries
is the continued reliance by the incumbent on copper rather than
investing in or accessing FTTH networks
Where FTTH has been deployed, a key challenge can be restrictive
conditions for closing copper exchanges and/or reluctance by
customers to switch voluntarily
Countries which are pursuing early PSTN/ISDN switch-off (EE, DE,
NL) have a head-start towards copper switch-off by accommodating or
promoting alternatives to analogue equipment
Copper switch-off Conclusions (1)
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• Consumer surveys in Sweden show that once customers make the
switch to FTTH, they are significantly more satisfied with their
broadband service and make more use of digital services. Most
consumers responding to the Swedish survey also find that FTTH is
good value for money
• Operators pursuing copper switch-off have cited a number of a
benefits including significant energy savings and reductions in
operational cost, the opportunity to close and sell exchange
buildings, fewer faults and greater customer satisfaction and
loyalty
• Copper switch-off can also significantly improve the business
case for FTTH by increasing penetration on the FTTH network,
thereby supporting a more widespread deployment
Copper switch-off Conclusions (2)
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Based on evidence that switching from copper to FTTH delivers
benefits to both consumers and operators and improves the business
case for FTTH, there is scope for policy makers and NRAs to
Incentivise FTTH deployment and/or use of FTTH
access by incumbents and avoid promoting continued reliance on
copper and copper upgrades such as FTTC
Facilitate switch-off of the copper network and enable PSTN
switch-off as a precursor
Review conditions (notice periods and wholesale obligations) for
copper exchange closure and PSTN switch-off
Improve customer awareness by clearly distinguishing FTTH from
FTTC in advertising
Encourage operators to find solutions that support legacy
equipment or inform consumers of alternatives
Improve processes for switching between the incumbent and
alternative FTTH platforms
Copper switch-off Recommendations
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Ilsa GodlovitchDirector Brussels Office
Rhöndorfer Str. 6853604 Bad HonnefGermany
[email protected]
Tel.:+32 2 830 0380Fax: +32 497 505641
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