Berlin, 25.10.2022 The associations Bitkom, BREKO and VATM comment on today’s decision by the Federal Ministry of Digital and Transport (BMDV) to prioritize the promotion of fiber optic expansion in the future:

“We welcome the fact that the Federal Ministry for Digital and Transport (BMDV) has today set out the framework for the future funding of fiber optic expansion and defined central cornerstones. This ensures predictability for all parties involved and focuses on the common goal of implementing nationwide fiber optic expansion in Germany as quickly as possible.

In the view of the associations Bitkom, BREKO and VATM, the prioritization of the allocation of subsidies announced by the BMDV today is necessary so that the municipalities in which Internet coverage is particularly poor and there is no potential for a self-sufficient expansion benefit first from state support measures. It has become clear in recent weeks that the ‘natural prioritization’ promised by the federal states and municipal umbrella associations does not work in practice. Without prioritization, a new discussion about empty funding pots would be inevitable in the coming year.

The recent discussions have also distorted the view of the reality of expansion. Fiber optic expansion is not being carried out exclusively or predominantly with subsidies, but rather the expansion of fiber optic networks is currently running at full capacity. Around 90% of the entire fiber optic expansion is being carried out by private-sector expansion projects. All available resources are being used to bring fast and stable Internet to citizens and companies. We need the support of the district administrators and mayors to make the privately financed projects in the municipalities a success. If everyone involved pulls together and does not just focus on the funding pots, we will make the fastest progress in expanding the digital infrastructure. In order to further increase the pace of expansion, approval procedures in particular must be significantly simplified and digitalized and the use of alternative installation methods must be increased.

It is important that the BMDV today also quantified the funding available for the promotion of fiber optic expansion in the coming year. However, the federal funding of EUR 3 billion announced by the BMDV for 2023 is too high in the view of the associations Bitkom, BREKO and VATM. Expansion practice shows that more state money does not lead to faster expansion, but can even slow it down. If too much state funding competes with private funding, this leads to already scarce construction and planning capacities being tied up in subsidized projects and thus no longer being available for faster expansion by the private sector.”