Internet - Fiber optic expansion: private sector wants less funding
The private sector involved in the expansion of fiber optics is demanding significantly less state funding than previously planned. In a joint letter, the Federal Association for Broadband Communication (Breko), the Federal Association for Fiber Optic Access and the broadband association Anga demanded that only one billion euros should be made available from the federal budget over the next three years and not three billion as planned. The digital associations Bitkom and VATM also took this stance. They said that such a reduction of six billion euros in total would also be appropriate in view of the budgetary situation.
The companies represented by these associations have long been concerned about government subsidies. They complain that it diverts scarce construction capacity for state-supported projects and that other areas are not given a chance, even though more people live there and it is therefore more urgent there. In addition, the official procedures are complex and time-consuming. Overall, the expansion is slowing down due to the subsidies, the associations complain.
Companies against flood of applications
Although private companies take part in tenders for subsidized projects, they are sometimes reluctant to do so - after all, the competition does it too. In view of the federal government's significantly oversubscribed annual funding budget, the associations are calling for a change of course in order to prevent a renewed flood of applications. The companies are annoyed that many local authorities apply for funding at random, so to speak, even though they have no chance. This wastes a lot of time - during which the expansion could have already taken place.
The associations do not want to do without the state money completely. They also admit that an expansion with very fast and stable Internet in some sparsely populated areas of Germany is only possible with state aid. The German government wants fiber optic connections to be available throughout Germany by 2030. Germany is still a long way from achieving this. Fiber optics is considered the best technology to meet the increasing demand for data in the Internet age.
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The private sector, represented by associations like Bitkom and VATM, echo the concerns of Breko and Anga, advocating for a reduction of state funding for fiber optic expansion from three billion to one billion euros over the next three years. This reduction, they argue, is necessary given the current budgetary situation.
The private sector argues that subsidies for fiber optic expansion are hindering progress by diverting scarce construction capacity towards state-supported projects and delaying expansion in areas of higher demand and urgency.
In Berlin, where fiber optic expansion is particularly important, the associations call for a change in the current approach to subsidies to prevent a renewed flood of applications and ensure that funding is distributed more effectively.
Despite their criticism of subsidies, the associations acknowledge that state aid is necessary to achieve the German government's goal of having fiber optic connections available throughout Germany by 2030, particularly in sparsely populated areas. Glass fiber technology is considered crucial to meet the rising demand for data in the Internet age.
Source: www.stern.de
