Together with the telecommunications expert and economist Prof. Dr. Jens Böcker, the German Broadband Communication Association (BREKO) presented a current analysis on the status of fibre roll-out in Germany on August 30th. In addition to data from the more than 240 network operators organised in the BREKO, the BREKO Market Analysis 2023 is based on roll-out figures from all relevant companies involved in fibre roll-out in Germany and is thus representative of the German telecommunications and fibre market. The roll-out figures reflect the status at the end of June 2023. In addition to nationwide data, the analysis also includes figures on the status of fibre roll-out in the federal states.
Strong growth in fibre availability
Study author Prof. Dr. Jens Böcker highlights the remarkable progress of fibre roll-out in the past twelve months: "In the face of numerous challenges, companies continue to set a good pace in fibre roll-out: Thanks to 4.6 million newly connected households, businesses and public institutions, the fibre rate has increased by nine percentage points to 35.6 % since June 2022." This means that fibre connections to the building or flat are available to 17.3 million households, businesses and public institutions – more than a third of Germany.
Telekom's competitors are responsible for 64 % of the investments and 67 % of the fibre roll-out
With reference to the forecast of the BREKO Market Analysis 2023 that, depending on the general conditions, fibre coverage in Germany will be between 46 and 60 % by 2025, BREKO President Norbert Westfal, Spokesman of the Board of Management at EWE Tel, comments: "With investments of more than eight billion euros, Telekom 2022's competitors have made a clear commitment to nationwide network expansion and to Germany as a business location. This means that, despite numerous challenges, the industry is still well on the way to achieving the federal government's goals of providing half of Germany with fibre optic by 2025 and all of Germany by 2030. However, in order to maintain the current pace, we need optimal framework conditions for the strong self-supported fibre roll-out. In particular, the federal, state and local governments should reduce bureaucracy by pushing the nationwide digitisation of approval procedures based on the broadband portal. To further accelerate the procedures, the Federal Ministry of Digital Affairs and Transport (BMDV) should revise its draft of the Network Expansion Acceleration Act published at the end of August in one important point: Fibre roll-out should not only be defined as 'in the public interest', but as 'in the overriding public interest' – analogous to the expansion of renewable energies."
Strategic double roll-out jeopardises achievement of political fibre targets
Other hurdles that could prevent the best-case scenario of 60 % fibre coverage in 2025 include the acute shortage of skilled workers, increased expansion costs and purchasing restraint due to continued high inflation. However, the greatest threat to a fast nationwide fibre roll-out is currently the announced or actual fibre roll-out by Telekom. According to BREKO's findings, by July 2023 this had affected all the Flächenländer, 223 municipalities, most of them in North Rhine-Westphalia and Bavaria, and 74 Telekom competitors. In 12 % of the cases, a competitor has already partially or completely withdrawn its expansion project. In every tenth case, a fibre-optic network that was financed with state subsidies is even being built over.
"Telekom's competitors are responsible for two-thirds of the fibre roll-out and are thus making a decisive contribution to the creation of a sustainable digital infrastructure for the whole of Germany. The basis for this success is fair competitive conditions. However, the cases reported to us of double fibre roll-out by Telekom and Glasfaser Plus in more than 220 municipalities in all federal states are currently threatening this basis. Now the Federal Government and the Federal Network Agency must take immediate countermeasures in order not to jeopardise the achievement of the political expansion targets," demands BREKO Managing Director Dr Stephan Albers.
Schleswig-Holstein remains front runner; Brandenburg catching up fast
There are big differences between the federal states in the progress and speed of fibre roll-out: Schleswig-Holstein remains ahead with 82 % fibre coverage, followed by Hamburg with 72 % and Brandenburg with 54 %. The latter is also the federal state with the largest increase in available fibre connections: Compared to the same period last year, the number of available fibre connections in Brandenburg has more than doubled. Baden-Württemberg, on the other hand, has only improved by six percentage points and, with a fibre coverage of 23 %, continues to be in last place in a comparison of the Flächenländer (all federal states whose territory includes not only one or two cities).
Sustainability is moving more into the focus of telecommunications companies
Another key topic of the BREKO Market Analysis 2023 is the importance of sustainability in the telecommunications industry. Böcker: "Sustainability is visibly moving into the focus of telecommunications companies, which has already led to numerous measures. The industry is pro-active and discussing its own industry standard for sustainability."
The BREKO Market Analysis 2023 can be downloaded here: www.brekoverband.de/schwerpunkte/breko-marktanalyse/