France leads Europe in fiber internet coverage, reaching 89% of households. With significant investments in telecommunications, including €113 billion over the last decade, mobile data costs have dropped 68%, making telecom services highly affordable. Despite increased taxation, operators are committed to enhancing digital infrastructure and reducing their environmental impact. The growing importance of 5G and fiber optics highlights France’s competitive position in the digital economy, while calls for better regulatory frameworks are gaining momentum at the EU level.
France Leads Europe in Fiber Coverage
France proudly claims the top spot in Europe for the highest number of households eligible for fiber internet, according to the latest annual report from the French Telecommunications Federation, conducted by EY Parthenon. With an impressive coverage rate of 89% and 23 million connected premises as of June, France outshines Italy and the UK, both hovering around 60%, and significantly surpasses Germany, which is limited to 40% coverage.
Mobile Growth and Investment in Telecommunications
On the mobile front, 5G technology is rapidly gaining traction. The proportion of SIM cards supporting this cutting-edge telecommunications standard tripled last year, reaching 21% of active cards in France.
The development of high-speed networks has seen a staggering investment totaling €113 billion over the past decade, with €14 billion allocated specifically in 2023. This level of investment is remarkably higher than that seen in other infrastructure sectors such as electricity, railways, or highways.
In the last five years, the cost of a gigabyte has plummeted by 68%. France stands out not only for its fiber coverage but also for the affordability of its mobile plans. With an average monthly cost of €47 for mobile subscriptions (€14) and fixed services (€35), France boasts the most competitive telecom prices in Europe, nearly half that of the UK (€83) and Germany (€84). In comparison, U.S. subscribers spend an average of €171.
While mobile data usage has surged by 26% annually since 2019, the price for a gigabyte has dramatically decreased during this same timeframe. Currently priced at €0.70 per gigabyte, France’s rates are almost four times lower than the European average of €2.00.
Telecom expenses account for just 2.8% of the average French household budget. With prices dropping by 5 points between 2023 and 2024 despite ongoing inflation, the telecommunications price index has decreased from a base of 100 in 2013 to 91 in 2024, contrasting sharply with the skyrocketing costs of postal services (190), electricity (183), and gas (180).
In the business sector, mobile data consumption has also risen, with a 22% annual increase between 2018 and 2022, while overall costs have dropped by 7% during the same period.
The leading telecom operators, including Orange, SFR, Bouygues Telecom, and Free, are investing €125 per inhabitant, outpacing their Spanish (€55) and Italian (€94) counterparts, showcasing their strong commitment to advancing high-speed internet infrastructure.
However, this commitment comes at a cost. The telecommunications sector is facing increasing taxation, with specific taxes growing by 5% annually to reach €1.6 billion in 2023. Telecom operators are taxed at a rate twice that of companies on the CAC 40, while they invest over double that amount.
Furthermore, there is a growing concern regarding the imbalance in value distribution between telecom operators and other digital entities such as device manufacturers, streaming services, and web giants. In 2023, these digital players accounted for 34% of revenues in the sector while contributing 53% of investments and 56% of tax payments.
In light of these challenges, FFTélécoms emphasizes the need for a new regulatory framework that would enable the telecom sector to secure sustainable investment conditions in digital infrastructure, which is vital for the competitiveness of the broader economy. This discussion is gaining traction at the European Union level, spurred by the European Commission’s connectivity white paper and various reports on market competitiveness.
Telecom operators are also highlighting their contributions to the digital ecosystem. They provide crucial infrastructure necessary for the advancement of artificial intelligence and actively engage in combating cyber threats.
Moreover, these operators are committed to minimizing their carbon footprint. The energy consumption of fixed networks is decreasing by 11% annually, thanks to the growing adoption of fiber optics, which is three times more efficient than traditional copper. The shift to 5G is also helping to alleviate the environmental impact of mobile networks.