Study on the expected investment return of commercial digital submarine cables to establish a profitability benchmark for CEF Digital

This summary outlines a procurement contract opportunity from the European Commission's Directorate-General for Communications Networks, Content and Technology (DG CNECT). The contract pertains to a study designed to establish a financial benchmark assessing the commercial viability of digital submarine cables under the Connecting Europe Facility (CEF) Digital program.

The core objective of the contract is to conduct research focused on historical investment returns of commercial digital submarine cables. The results will inform future funding applications for subsequent projects within the CEF Digital framework. The selected contractor will be responsible for gathering data from past cable projects, collecting insights from industry players, and conducting statistical analyses to derive an expected return on investment benchmark.

Key elements of the opportunity are as follows:
- The maximum contract value is set at €50,000, and the duration is four months.
- The contract will follow a negotiated procedure, with no framework agreement specified.
- The expression of interest period will commence on October 14, 2025, and conclude on October 28, 2025, with a launch projected for the same day.
 
Eligibility for this procurement is likely to encompass service providers, consulting firms, and research organizations with the requisite expertise in telecommunications infrastructure and financial analysis. The opportunity primarily targets the telecommunications sector but intersects with ICT, market research, and investment analysis.

It is crucial to acknowledge that this is not a call for tenders but a publication indicating the intent to pursue this procurement contract in the future. Interested parties must monitor the EU Funding & Tenders Portal for the official announcement for the call for tenders and related documents.

The project aims to develop a decision-support tool that will guide the EU in determining public funding levels essential for ensuring the viability of strategically significant cable projects, which may not attract sufficient private investment solely on commercial grounds.

This is a publication announcing the European Commission's, DG CNECT's intention to publish a future negotiated low or middle value procedure. It is not a call for tenders.

The procedure identifier is EC-CNECT/2025/LVP/0101-EXA.

The subject of procurement is the development of a financial benchmark to assess the commercial viability of digital submarine cables. The study will serve as an input for the evaluation of funding applications under the Connecting Europe Facility (CEF) Digital programme, specifically under the future Digital Global Gateways call for proposals. It will gather data about past commercial projects and collect opinions from market players. After clean up and triangulation of the data collected to ensure comparability, the study will calculate the historical average investment return of cable system projects and run statistical analysis to identify key profitability drivers. The study is expected to determine an expected/benchmark return on investment that would be used to compare the profitability of the projects being evaluated and assess how much they rely on public funds to be rolled out.

The maximum total value of the contract is 50,000 EUR and the maximum duration is 4 months. The procedure type is 47396214. The estimated total value is 50000 EUR. The lead contracting authority is the European Commission, DG CNECT Communications Networks, Content and Technology. The main classification (CPV) is 79310000 - 79310000. The nature of the contract is services. There is no framework agreement.

Milestones:
Start date for expression of interest: 2025-10-14 Europe/Brussels
Deadline for expression of interest: 29/10/2025 06:59 Europe/Brussels
Indicative date of launch of the negotiated procedure: 2025-10-29 Europe/Brussels

Submissions must be sent exclusively at the address for submission given below. The method of expression of interest is electronic.

A question was asked: Where can I find the procurement documents for calls for tenders with ‘ExA' in the reference? The answer is: References that feature an ‘ExA’ are not calls for tenders. They are a publication announcing the contracting authority’s intent to launch in the future a low or middle negotiated procedure. This was published on 03/10/2024 17:32.

In summary, the European Commission's DG CNECT is planning a future negotiated procedure to commission a study on the financial viability of digital submarine cables. This study aims to create a benchmark for evaluating investment returns in this sector, which will be used to assess funding applications under the CEF Digital program, particularly the Digital Global Gateways initiative. The study will involve gathering data from past projects and market players, analyzing investment returns, and identifying key factors that drive profitability. The contract is valued at a maximum of 50,000 EUR and will last for 4 months. The expression of interest period begins on October 14, 2025, and ends on October 29, 2025, with the negotiated procedure expected to launch on the same day. It is important to note that this announcement is not a call for tenders but rather a notification of a future opportunity.

Eligible Applicant Types: The opportunity does not explicitly define eligible applicant types. However, given the nature of the procurement which involves developing a financial benchmark and conducting statistical analysis, suitable applicants would likely include research institutes, consulting firms, financial analysis firms, or other organizations with expertise in financial modeling, data analysis, and the digital infrastructure sector.

Funding Type: This is a procurement opportunity, specifically a planned call for tenders. The nature of the contract is for services.

Consortium Requirement: The opportunity does not specify whether a single applicant or a consortium is required. It is possible that both single applicants and consortia are eligible, but this would need to be confirmed in the full call for tenders documentation when it is released.

Beneficiary Scope (Geographic Eligibility): The opportunity does not explicitly state geographic eligibility. However, given that it is an EU funding and tenders portal, it is highly likely that the eligibility is at least for EU member states. It may also be open to EEA countries or other countries associated with EU programs.

Target Sector: The target sector is primarily focused on digital infrastructure, specifically digital submarine cables. It also touches upon finance, as the study aims to develop a financial benchmark. The Connecting Europe Facility (CEF) Digital programme is also mentioned, indicating a focus on the broader digital sector.

Mentioned Countries: No specific countries are mentioned. The relevant region is the EU, given the context of the EU Funding & Tenders Portal and the European Commission as the lead contracting authority.

Project Stage: The project stage is focused on research and development, specifically the development of a financial benchmark. The study will involve gathering data, conducting statistical analysis, and determining an expected return on investment. This suggests a project stage that is beyond the initial idea phase but not yet at the commercialization or scale-up stage.

Funding Amount: The maximum total value of the contract is 50,000 EUR. This falls into the under €50k funding range.

Application Type: The application type is a planned call for tenders, with a negotiated procedure. The method of expression of interest is electronic.

Nature of Support: Beneficiaries will receive money in exchange for services rendered, specifically the delivery of the study on the expected investment return of commercial digital submarine cables.

Application Stages: The information provided indicates at least two stages: an expression of interest and a subsequent negotiated procedure. It is likely that there will be further stages within the negotiated procedure, such as proposal submission and evaluation. Therefore, the application process likely involves more than 2 stages.

Success Rates: The success rates are not mentioned in the provided text. As this is a planned call for tenders, the success rate will depend on the number of applications received and the quality of those applications.

Co-funding Requirement: The information provided does not mention any co-funding requirement. It is possible that no co-funding is required, but this would need to be confirmed in the full call for tenders documentation.

Summary:

This opportunity is a planned call for tenders from the European Commission, DG CNECT, under the Connecting Europe Facility (CEF) Digital programme. The project aims to develop a financial benchmark to assess the commercial viability of digital submarine cables. The selected contractor will conduct a study to gather data on past commercial projects, collect opinions from market players, perform statistical analysis, and determine an expected return on investment for these projects. This benchmark will then be used to evaluate future funding applications under the Digital Global Gateways call for proposals. The maximum contract value is 50,000 EUR, and the contract duration is 4 months. The expression of interest period is planned for October 2025. This is not a call for tenders yet, but a publication announcing the contracting authority’s intention to publish a future negotiated low or middle value procedure. Interested parties should monitor the EU Funding & Tenders Portal for the official call for tenders and related documentation.