Europe's super-fast broadband bill could top €200bn

European business leaders will today call for greater investment in next-generation broadband networks after research by the European Investment Bank (EIB) has shown that the cost of upgrading networks is likely to be 20 times that promised so far.

The EIB research, which will be presented at its Productivity and Long-Term Growth Potential in Europe conference on 27 October, concludes that the bill to upgrade European networks to super-fast broadband speeds will top €200bn (£174bn).

The EIB had worked alongside leading economists from across the globe to determine the economic benefits and risks of massive infrastructure projects, such as a European-wide deployment of superfast broadband networks, said Plutarchos Sakellaris, EIB vice president.

Sustained growth in Europe over the coming decades was dependent on “tackling long-term structural challenges” such as super-fast broadband, he added.

“Healthy market economies constantly reinvent themselves as businesses adjust to changing economic conditions. Part of this reinvention involves new firms exploring new products and unprecedented ways of doing business over the internet,” said John Haltiwanger, a professor of economics at the University of Maryland.

Last week, the European Commission published ambitious plans to invest €50bn (£43.4bn) in upgrading Europe's broadband, energy and transport networks – but a paltry €10bn (£6.36bn) of that was set aside for broadband.

The EC has previously set itself a goal of ensuring that everyone in Europe had access to broadband with speeds of at least 30Mbit/s by 2020, with at least half the population having access to services of 100Mbit/s.

The British government, meanwhile, has pledged to invest £530m in super-fast broadband projects, ensuring that those living in rural communities don't miss out.