The Evolution of FTTH Networks in Europe and South Korea—Regulatory Power

Regulations of next-generation networks (NGNs) have played a central role in the transition from copper networks to broadband networks in Fiber to The Home (FTTH), also allowing for a reduction in asymmetries between incumbent operators and their competitors. Despite common European Union directives, telecom infrastructure development varies across countries due to differences in regulation, investment models, legacy networks, operators’ behavior, and public policies. This study analyzes the evolution of Very High-Capacity Networks (VHCNs), focusing on the implementation of FTTH in four European countries (Portugal, Spain, France, and Germany), and in South Korea. The latter was included as a benchmark in government-driven broadband development. The analysis considers key factors influencing FTTH development, including infrastructure regulation, fiber investment incentives, incumbent strategies, infrastructure sharing and co-investment, rural coverage plans, and demographic differences of each country. The results show that regulatory measures directly influence the pace of FTTH installation; but its effectiveness also depends on investment incentives, market competition, and demand factors. Portugal, Spain, and France have high FTTH coverage despite different regulatory and investment models. In contrast, Germany relied on xDSL over copper networks for a long time, causing significant delays, with an FTTH coverage rate of 42.5% and a penetration rate of only 12.3%, putting the European Union’s 2030 goal of universal 1 Gbps coverage at risk. South Korea shows that long-term public policies, demand-side incentives, and high digital adoption accelerate mass FTTH adoption and turn telecommunications infrastructure into a key driver of economic and technological development.