Survey shows impact of EU law on fibre network investments

The rollout of fibre broadband networks in the UK and Europe could be being impeded by poorly-conceived EU regulations, according to a new report.

A survey of industry investors conducted by Credit Suisse has revealed that more than 90 per cent of fund managers believe that EU telecoms regulation does not encourage investment, reports the Financial Times

Common issues cited by respondents include the lack of predictability in decision-making, as well as a regime that tends to favour resellers and consumers too heavily.

The investors dismissed the idea that lowering copper wholesale prices would encourage fibre to the home investment, suggesting that improving regulatory consistency would be the best way of accomplishing this.

Widespread support for the principles of the EU's Digital Agenda policy was also observed, with 62 per cent stating that improved consumer broadband speeds would encourage economic growth.

This comes after a report from the DigiWorld Institute last month revealed that global growth in fibre optic broadband subscriptions slowed in the first half of 2011, though this fall is expected to be a blip rather than being indicative of a long-term trend.