Belgium’s digital economy is facing significant challenges despite advancements in business digitalisation and artificial intelligence, as a new Economy Ministry report highlights the nation’s struggle to keep pace with the rest of Europe in deploying 5G and fibre broadband technologies.
The Ministry’s 2023 annual review of the digital sector reveals that while Belgium surpasses the European Union average in general internet connectivity and broadband speeds, it lags significantly in adopting advanced technologies crucial for future economic growth.
Strengths in Digitalisation and Connectivity
Belgium has shown strong performance in internet accessibility and general connectivity. By the end of 2023, 94.48% of Belgian households had an internet connection, slightly above the EU average of 93.08%.
Small and medium-sized enterprises (SMEs) also performed well, with 86.6% having access to fast broadband connections of at least 30 Mbps, compared to an EU average of 84.9%.
However, the country’s connectivity metrics mask critical weaknesses in advanced network deployment. The report underscores that Belgium is trailing behind in fibre-to-the-premises (FTTP) and 5G rollouts, technologies essential for supporting high-speed, high-capacity internet services.
Fibre Coverage: Belgium’s Weak Spot
In 2023, Belgium ranked last in Europe for fibre broadband coverage, with only 25% of households connected, a stark contrast to the EU average of 63.99%. Fibre broadband, or FTTP, delivers ultra-fast internet using fibre optic cables, a crucial infrastructure for the modern digital economy.
The Ministry acknowledged Belgium’s lag in fibre rollout but argued that this shortfall should be viewed in context. The country has historically relied on a robust fixed-cable network to ensure good internet coverage.
Furthermore, projections from the Belgian Institute for Postal Services and Telecommunications (BIPT) suggest improvements are on the horizon. By 2025, it is anticipated that 50% of households will have fibre coverage, a figure expected to rise to 75% by 2028.
Slow Progress on 5G Deployment
Belgium’s 5G rollout has also been sluggish. In 2023, only 40% of households had access to 5G mobile technology, well below the EU average of nearly 90%. Although this represented an improvement from 30% in 2022, the disparity highlights Belgium’s struggle to keep up with its European counterparts.
Updated figures from BIPT in June 2024 provide a more optimistic outlook, with outdoor 5G coverage reaching 95% of households and indoor coverage at 76%. Despite these gains, the road to widespread adoption has been fraught with delays.
Delays Due to Bureaucracy and Security Concerns
The rollout of 5G in Belgium has been hindered by a combination of bureaucratic, political, and security challenges. A critical delay occurred in 2019 when regional governments failed to agree on how to distribute revenue from the 5G spectrum auction.
Further complications arose when Belgium faced international pressure to exclude Huawei, a Chinese technology provider, over espionage concerns. This led to the replacement of Huawei infrastructure by domestic telecom providers, adding to the rollout’s delays.
Even after the spectrum auction concluded, the 5G rollout faced resistance from activist groups like the Stop5G.be collective, which appealed the licences in court.
Economic and Technological Implications
Belgium’s slow adoption of 5G and fibre technologies has broader implications for its economy. Advanced connectivity is critical for driving innovation, supporting remote work, and enabling emerging technologies like autonomous vehicles and smart cities.
While Belgium performs well in overall internet speed—ranking in the EU’s top ten for fixed internet subscriptions with speeds of 100 Mbps or more—the adoption of gigabit-speed connections remains limited. In 2023, only 5.44% of households had access to internet speeds of at least 1 Gbps, significantly below the EU average of 18.52%. Among SMEs, just 11.1% had access to these high-speed connections.
The Industry Perspective
Agoria, a federation representing Belgium’s technology sector, has expressed concerns over the report’s findings, suggesting that some data may be outdated. Agoria highlighted that BIPT’s more recent figures paint a brighter picture, particularly regarding 5G coverage.
A spokesperson for Agoria told The Brussels Times that Belgium’s telecommunications sector is making significant investments to meet EU targets for Very High Capacity Networks (VHCN). With 96% of households covered by VHCN, Belgium ranks among Europe’s top five nations in this category.
However, Agoria emphasised the need for further action. “Tax barriers for investments in network infrastructure should be lowered, and administrative procedures simplified,” the federation said in a statement.
Looking Ahead
Despite its current challenges, Belgium’s digital landscape is poised for transformation. The projected expansion of fibre and 5G networks promises to close the gap with other European nations in the coming years.
The government’s commitment to addressing these deficiencies is evident, but achieving widespread adoption of advanced technologies will require continued investment, regulatory support, and public-private collaboration.
As Belgium strives to position itself as a leader in the digital economy, the success of these efforts will determine its ability to compete in an increasingly interconnected world.
