- Federal government falls short of achieving broadcast association's objective for optical fiber deployment
Germany's Fiber-Optic Expansion Speeding Up in Homes Connected, Yet Overall Pace Slowing Down
The latest market analysis, presented by the Federal Association of Broadband Communication (Breko), reveals that while Germany's fiber-optic expansion is gaining traction in terms of coverage, its pace is gradually decelerating. According to the analysis, the fiber-optic expansion rate stood at around 43 percent in June 2024, serving nearly 20 million connections. Compared to the same period last year, this is an increase of about 15 percent. However, the growth from June 2022 to June 2023 was only around 36 percent. This rate refers to areas where the cables for high-speed internet have been laid but not yet directly connected to homes.
Breko President Norbert Westfal views this slowing pace as an early warning sign that could impact political expansion targets. He emphasized, "As per our projections, Germany is expected to meet its target of half of all households having fiber-optic connections by 2025. However, achieving full coverage by 2030 seems unlikely." Breko's forecasts suggest that the expansion rate will only reach between 76 and 86 percent by then.
Accelerated Growth in Direct Connections
While the expansion of coverage is slowing, the number of households, businesses, and institutions directly linked to the fiber-optic network (homes connected) is witnessing faster growth. In June 2024, about 10.5 million households were directly connected to the fiber-optic network, marking an increase of approximately 18 percent compared to June 2023. The growth in the same period last year was a meager 3.5 percent.
To accelerate coverage expansion, Breko is advocating for a shift in political strategy. "We particularly urge the Federal Network Agency to develop a competition-friendly concept for transitioning from copper to fiber-optic networks," Breko declared.
The European Parliament, through the Commission, could provide valuable insights and recommendations to accelerate Germany's fiber-optic expansion, considering its role in influencing telecommunications policies across Europe. The slowing pace of fiber-optic expansion might prompt the Commission to engage in discussions with Breko and German authorities, aiming to set more ambitious targets for fiber-optic penetration.
