In its Breko Market Analysis 2024 published on 10 September, the Bundesverband Breitbandkommunikation (Breko) shows that the expansion of fibre optics in Germany continues to progress. As of 30 June 2024, the fibre optic roll-out rate was 43.2 % and the proportion of connected households had risen to 22.8 %. However, as the expansion of fibre optics in the country is stalling, Breko called on the federal government to finally take effective measures.
Breko President Norbert Westfal warns against the forecast of the market analysis, according to which the fibre optic expansion rate will rise to 50% by 2025 assuming stable development, but only to a value between 76 % and 86 % by 2030:
„Despite major economic challenges such as increased expansion costs and a shortage of skilled workers, Telekom's competitors in particular are continuing to drive forward the expansion of fibre optics. Furthermore, in view of the political expansion target of 2030, a clear political course correction is needed now more than ever to create investment security and incentivise investment. The fact that expansion is slowing down across the country is an early indicator with consequences: According to forecasts, the German government will achieve its goal of fibre optic for half of German households by 2025. However, under the current political framework conditions, nationwide fibre optic coverage by 2030 will be missed by a wide margin. As Breko, we have long been proposing concrete measures to achieve this goal. In particular, we are calling on the Federal Network Agency to develop a concept for a competitive transition from copper to fibre optic networks: The aim here is to prevent Deutsche Telekom from strategically switching off its copper network only where it has laid fibre itself. In addition, an effective service provider obligation is finally needed - in order to provide an impetus for fair competition and break up the prevailing oligopoly in mobile telephony. Unfortunately, it has become increasingly clear in recent months that the traffic light coalition has apparently lost interest in the expansion of fibre optics.“
Focus on connecting households
According to the study, around a quarter (10.5 million) of all buildings and homes in Germany are currently connected to the fibre-optic network (Homes Connected). Study author Prof. Dr Jens Böcker: „Despite many obstacles, the telecommunications industry is continuing to invest in the expansion of fibre optics. What is striking is that while the focus in recent years has been on expansion in the area, companies are now increasingly moving towards connecting households, companies and public institutions. Deutsche Telekom's competitors in particular are ensuring that their customers are connected to the fibre-optic network instead of just building the fibre-optic network to the street.“
Dual expansion and copper-fibre migration as the most important topics
Deutsche Telekom's strategic dual expansion remains one of the biggest problems for fibre optic expansion. According to the market analysis data, 78 companies are currently affected by dual expansion activities by Telekom or its subsidiary Glasfaser Plus. Around one in three companies (31 %) have even cancelled expansion projects due to double expansion.
Breko Managing Director Dr Stephan Albers: „Even if Deutsche Telekom would have you believe otherwise, the strategic dual expansion of the market-dominating company remains a central problem in fibre optic expansion. This economically absurd behaviour prevents the expansion of entire municipalities, deters investors and is a burden for citizens. Nothing has happened since the Bundesnetzagentur's monitoring report was published in April. Sitting out the issue only benefits Telekom.“
Differences between the federal states
According to the study, fibre optic expansion has progressed differently in the federal states. At 89.3 %, Schleswig-Holstein still has the highest fibre-optic roll-out rate, followed by Hamburg (82.7 %) and Brandenburg (59.3 %). Bremen recorded the largest increase with 26.3 percentage points. Bringing up the rear are Thuringia (33.8%), Baden-Württemberg (29 %) and Berlin (28.5 %). Schleswig-Holstein, Brandenburg and Hamburg have the highest fibre optic connection rate. Brandenburg recorded the largest increase.
Albers: „In order to speed up the expansion in the federal states, we finally need faster approval procedures. Fibre optic expansion must therefore also be defined as being in the ‘overriding public interest’ in the Telecommunications Network Expansion Acceleration Act. The Bundestag and Bundesrat have a duty to make fundamental improvements here in order to create a framework for accelerating the expansion of fibre optics after all.“
Open access is gaining in importance
The opening of networks to other providers is becoming increasingly important. 89 % of Breko network operators offer access to their networks. Open access ensures more competition and is gaining acceptance as an alternative to dual expansion. Cooperations ensure higher network utilisation and offer customers a greater variety of services.
You can find the detailed study
here.
