In today's hyperconnected digital world, fibre infrastructure is essential for economic growth. It moves data even faster and more reliably over longer distances, connecting shoppers in Paris with retailers in New York, and streaming live meetings from Singapore to Barcelona.
Lightning-fast
Installing fibre connections in households means you can enjoy lightning-fast internet speed on multiple devices at the same time, making streaming, gaming, and video calls smooth and hassle-free. Plus, fibre is super reliable, unaffected by bad weather, and ready to handle future tech demands. You can also use fibre to bundle internet, TV, and phone services into one, often at a better price and quality. On top, fibre networks are more energy-efficient than legacy copper networks.
The rollout of fibre creates jobs in various sectors and attracts businesses, which helps local economies thrive. High-speed internet also opens up online business opportunities and enables remote work, potentially increasing household incomes. Overall, investing in fibre infrastructure drives long-term economic growth by boosting productivity and innovation.
Little wonder that the European Union wants all its households to have access to high-speed internet and a gigabit network with widespread 5G coverage by 2030.
Challenges
But Europe faces several challenges in expanding its fibre networks. The market is highly fragmented, particularly in rural areas, and the regulatory environment is complicated, making it hard to attract large private investors. ING is playing a key role in addressing these challenges by partnering with clients in the telecoms sector, supporting the development of Europe's fibre infrastructure and sustainable networks. This assisted to meeting demand for digital connectivity from customers around Europe while promoting innovation and collaboration across the region.
ING has been a strategic partner, helping clients throughout the telecom industry to not only achieve their business goals but also playing an important role in finding sustainable solutions. Our vast network of sector experts around the world and in-depth knowledge of the telecom industry allows us to help build a connectivity infrastructure throughout the world, which is future-proof.
- Dragi Dimitrijevic, global sector head of Technology, Media, Telecoms & Healthcare (TMT&H) at ING
Financing the future
Recently, ING financed two significant projects in this area.
We supported XpFibre, France's largest independent fibre-to-the-home operator, with its €5.8 billion debt refinancing. This is a landmark transaction for the European fibre infrastructure market and one of the largest European digital infrastructure financings to date.
We believe that the multi-sourced financing structure that was set up for XpFibre can serve as a model for other operators that reach XpFibre’s maturity. The strong credit profile of XpFibre was recognised by all parties involved. ING’s strong sector expertise in digital infrastructure and global reach with local experts in France were key to the success of this transaction.
- Andrei Dobre, director of TMT&H for Europe, the Middle East and Africa at ING
ING also supported Dutch fibre provider Glaspoort in securing sustainable-linked financing for its future fibre roll-out strategy. This seven-year €1.2 billion investment is a crucial step in Glaspoort’s plan to connect 1.5 million households and businesses with fibre-to-the-home in the Netherlands.
The sustainability-linked key performance indicators (KPIs) are aligned with Glaspoort’s ESG strategy and targets around supply chain engagement and Scope 3 greenhouse gas emissions; the company’s GRESB score (previously global real estate sustainability benchmark); and digital inclusion.
The closing of this financing is an important step in supporting the continued growth of Glaspoort and underpins Glaspoort’s strategy to connect 1.5 million households and businesses. Additionally, to align this financing with Glaspoort’s ESG strategy, we have included sustainability targets in the loan, further evidencing Glaspoort’s ESG ambitions.
- Ferry Niers, CFO of Glaspoort
Long way to go!
A study commissioned by the European Commission last year estimates that around €114 billion of investment is still needed to reach the 2030 fixed connectivity targets while an additional investment of around €33.5 billion is estimated to have full 5G to all populated areas by 2030.
This significant funding is crucial, especially given the stark differences in fibre coverage across Europe. Additional investment is particularly required in Belgium and Greece, where only 30% of homes are connected to fibre, while Romania is leading the way with over 90% fibre coverage.
About fibre infrastructure
Fibre infrastructure connects homes and businesses with high-speed internet using fibre optic cables. These tiny glass fibres transmit data via light, offering faster and more stable connections than traditional copper wires. With fibre-to-the-premises (FTTP), speeds exceed 1 Gbps for downloads and uploads. This infrastructure is crucial for 5G networks, enhancing speed and reducing latency. Investing in fibre also boosts local economies, creates jobs, and supports remote work and online businesses, all while being more energy-efficient than copper networks.
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