Fibre-optic coverage in Germany at 26% in mid-2022
Network operators have implemented almost 4.4 million new fibre-optic connections since the end of 2020
Demand is rising: Fibre optic connection on the way to becoming the new standard
Forecast for further expansion positive but associated with risks
Schleswig-Holstein and Hamburg lead the way in terms of fiber optic, followed by Saxony-Anhalt

Bonn, 6 September 2022 Fibre for all by 2030: The German government has set its targets for the nationwide expansion of future-proof digital infrastructure high in its gigabit strategy. With the BREKO Market Analysis 2022, the German Broadband Association (BREKO) today presented a comprehensive overall market analysis on the development of fiber optic expansion in Germany and thus a water level report on target achievement. With fiber optic coverage of 26% (as of 30 June 2022), a first milestone has been reached. In the context of the current geopolitical and economic situation, an improvement in expansion conditions is more important than ever for achieving the German government’s goal of supplying half of German households and companies with fiber optics by the end of 2025.

Together with telecommunications expert and economist Prof. Dr. Jens Böcker, the German Broadband Association (BREKO) today presented the latest analysis on the status of fiber optic expansion in Germany. In addition to data from over 230 network operators organized in BREKO, the BREKO Market Analysis 2022 is based on expansion figures from all relevant companies involved in fiber optic expansion in Germany, making it a comprehensive overall analysis of fiber optic expansion in Germany. New this year is the collection of expansion figures for the first two quarters of the year of publication of the study as well as the indication of fiber optic figures for the German federal states.

Fiber optic ratio rises to 26 percent

Study director Prof. Dr. Böcker also sees significant progress in the expansion of fibre optics since the last BREKO market analysis survey in July 2021: “I am pleased to be able to provide a positive overview of the expansion of fibre optics in Germany, the progress of which is of the utmost importance for digitization and thus also for climate and environmental protection. With 4.4 million new (homes passed) fiber optic connections since the end of 2020, network operators have accelerated the pace of expansion in 2021 and the first half of 2022. The fiber optic rate is thus rising continuously – 26%, i.e. every fourth German household, has had access to high-performance and future-proof fiber optic connections since mid-2022. Demand is developing in a similar way. Almost every second household that can book a fiber optic connection is already taking advantage of this opportunity. The benefits of fibre optics are increasingly being recognized and this technology is therefore becoming the standard. These figures also underline the fact that Germany has caught up with the rest of Europe.”

The BREKO market analysis shows: The proportion of fiber optic connections (“homes passed”) in relation to the total number of all households and companies (“fiber optic ratio”) has risen to 26% as of June 2022. This corresponds to an increase of 4.4 million to a total of 12.7 million fiber optic connections across Germany compared to the end of 2020. At 8.8 million and 71%, the alternative network operators, i.e. Deutsche Telekom’s competitors, account for the largest share of these connections. With its growth in fiber optic connections, Germany is in third place in Europe after France and the UK.

Investments in digital infrastructure rose to a total of 11 billion euros in 2021, once again reaching a record level. The alternative network operators also dominate here. Their investments of 6.5 billion correspond to 59% of the total investment volume.

Further expansion progress fraught with risks

Although the forecast for further expansion – and thus for achieving the fiber optic targets set by the German government – is fundamentally positive, it remains fraught with risk. For the year 2025, for which the federal government has set the target of supplying 50% of households and companies with fiber optics, the BREKO Market Analysis 2022 forecasts coverage of 40 to 53%. How the result will ultimately turn out depends more than ever on the political framework conditions and the unpredictable developments in connection with Russia’s war in Ukraine. BREKO President Norbert Westfal comments: “The current difficult situation caused by the global political situation also affects the companies involved in fiber optic expansion. Price increases, supply bottlenecks and a shortage of skilled workers are not only affecting citizens. They are also clearly noticeable in the expansion. We have the opportunity to achieve the federal government’s very ambitious targets by 2025 and 2030. To do this, however, we need the support of politicians at federal, state and local level to work together to create the conditions for rapid expansion and to remove existing hurdles quickly and in a targeted manner. The greatest lever here is and remains the design of state funding that sensibly complements – and does not hinder – the expansion of the private sector. With the figures available, the expanding companies have proven that they can provide Germany with fiber optic connections quickly and efficiently. Subsidies should therefore only be provided in future where there is no economic viability for expansion. In this context, we continue to place great expectations in the potential analysis commissioned by the federal government. In addition, the acceleration and digitalization of approval procedures remains at the top of our list of priorities. Politicians must now finally keep their promise to comprehensively digitize the administration in Germany. Fax machines in public offices must finally become a thing of the past.”

High competitive pressure – increasing importance of open access

The BREKO market analysis shows: The importance of open access cooperations, i.e. opening up the fiber optic network of an expanding company to other competitors on fair terms, is gaining momentum. 81 percent of BREKO network operators already offer open access according to the BREKO Market Analysis 2022. BREKO Managing Director Dr. Stephan Albers comments: “We are experiencing intense competition for expansion areas in the market and now also within BREKO. Competition stimulates business – on the one hand, this is good for expansion progress; on the other hand, in this economically tense phase, it is more important than ever to expand sustainably, avoid overbuilding and conserve resources. Open Access offers a solution to this. Over 80 percent of BREKO companies are already opening their networks to competitors and 23 percent of the fiber optic connections of BREKO network operators are already being marketed via Open Access partners. This development will increase significantly in the coming years.”

Demand is rising, fiber optic connection is increasingly becoming the new standard

As data consumption continues to rise, the “real fiber optic connection” (fiber optics to buildings and homes) is increasingly becoming the standard. Compared to other Internet connections, the booking of fiber optic connections (homes activated) is growing at an above-average rate, while the booking of cable connections is stagnating.

Around half of users who are already connected to the fiber optic network also booked an internet tariff via a fiber optic connection in 2021. This is shown by the take-up rate, which is calculated from the ratio of connected users (“Homes Connected”) to the contracts concluded (“Homes Activated”). It will be 47% by mid-2022. Over 1.4 million customers are already booking a connection with a bit rate of 1 Gbit/s or more.

Schleswig-Holstein remains a “fiber optic federal state”

Schleswig-Holstein is the undisputed leader when it comes to the status of fiber optic expansion in the federal states. With a fiber optic coverage rate of 61%, the “fiber optic state” is just ahead of Hamburg with a fiber optic coverage rate of 59%. Saxony-Anhalt is in third place with 33%. Across Germany, there are significant differences in the expansion status between the federal states, which, in addition to regional peculiarities, is primarily due to the widely varying framework conditions in the federal states. Berlin brings up the rear with fiber optic coverage of 10%.