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Germany fibre update

Germany fibre update

Germany fibre update

Fibre broadband rollout across Germany is accelerating, but the country still faces challenges in reaching its targets.

Fibre making good progress in Germany - but some hurdles remain

Germany's broadband infrastructure has seen rapid improvement over the past few years, particularly regarding fibre network expansion. Several developments are currently driving further progress, and large investments are being made by the public and private sectors. However, full FTTH coverage remains behind many other European countries and there are still several challenges to overcome. 

Germany's Digital Strategy aims to provide all of the country’s households, businesses, and public institutions with access to Gigabit internet speeds by 2030. The Strategy encourages public and private investments in broadband infrastructure, with a particular focus on fibre optics and 5G technology. Collaboration between the government and telecom operators plays a significant role in the rollout, with companies such as Deutsche Telekom, Vodafone, and Altice spearheading deployments.

However, bridging the digital divide, enhancing economic competitiveness, and preparing Germany for future digital demands in education, healthcare, and industry will require overcoming several issues. These include bureaucratic hurdles, high costs of infrastructure development, and regulatory complexities. Simplifying the regulatory environment is a key focus, in order to reduce red tape that has traditionally slowed down deployment of broadband infrastructure. 

Another key obstacle is slow rollout in rural areas, which lags significantly behind urban regions. Financial support from institutions such as the European Investment Bank (EIB) is bolstering projects to extend fibre access to more remote areas. A €175 m loan was granted to Northern Fiber Holding Group (NFH) for the expansion of its fibre network in northern Germany, in addition to an earlier €240 m financing round. What’s more, a joint venture involving Vodafone and Altice aims to connect up to 7 m homes with FTTH by 2030. This initiative covers urban as well as rural areas, which should contribute significantly to closing the digital divide.

Under EU State aid rules, the European Commission has approved amendments to a state aid scheme supporting deployment of high-capacity broadband networks offering Gb speeds in Germany. Originally, the scheme was set to expire on 31 December 2025, but following the amendment, it will be prolonged until the end of 2028. Budget will be increased by €26 bn. Several changes have been made to the scheme to bring it in line with the EU 2023 Broadband Guidelines, which outline how state aid can be granted to support broadband rollout, especially in areas where private investment is lacking. 

Germany is still catching up to other European countries in terms of fibre penetration, but overall, things are looking up. By mid-2023, some 15 m German homes were passed by fibre and Gigabit-speed connections were available to nearly 75% of households. Various initiatives, which are part of Germany’s broader Digital Strategy 2030, which aims for gigabit connectivity for all households by the end of the decade, are set to drive further expansion.

German Broadband Association Breko calls for fast, fair copper-to-fibre transition in Germany.

The European Commission has agreed to more than triple Germany’s state budget for high-speed network deployment, and the government has proposed a new telecom law: the Gigabit Offensive. This national initiative is aimed at accelerating the rollout of high-speed broadband, specifically targeting gigabit-level connectivity. Members of BREKO (Bundesverband Breitbandkommunikation), which represents a wide range of telecommunications companies focusing on fibre and broadband expansion in Germany, are key players in the Gigabit Offensive. 

Currently, BREKO is pushing for fair competition and stronger regulatory oversight to prevent inefficiencies and ensure a swift transition from copper to fibre, particularly in underserved rural areas. According to Stephan Albers, Managing Director of BREKO, the German government hasn’t included provisions to ensure competitive transition from copper to fibre by Deutsche Telekom. BREKO states that copper network switch-off is key to supporting fibre roll-out and reduces the ICT sector's electricity consumption. According to the Broadband Association, copper network operators should not be allowed to use the transition from DSL to fibre to transfer their existing market power to the fibre network.