50 percent fiber optic coverage by 2025 and 100 percent by 2030: Ambitious targets, only achievable with the right framework conditions
DIN standard for modern installation methods: Important milestone for efficient fiber optic expansion, but application by municipalities crucial
Digital approval procedures: OZG broadband portal must be used quickly across the board
Fiber optic dual expansion: Telekom’s tactical manoeuvres jeopardize expansion targets

Berlin, 04.07.2023 In July 2022, the German government adopted its gigabit strategy – which it describes as a “compass for the expansion of fiber optics and mobile communications”. On the occasion of the first anniversary, the German Broadband Association (BREKO) analyzes whether the needle is pointing in the right direction, which milestones have already been reached and where course corrections are now necessary.

Ambitious goals, right direction

The gigabit strategy is an important step towards nationwide fiber optic availability in Germany. With the targets of 50% fiber optic coverage by 2025 and 100% by 2030, it clearly commits to a future-proof digital infrastructure and sets an ambitious pace. It also identifies the key challenges to achieving the targets and many sensible measures on the way there. The fact that Federal Minister Dr. Volker Wissing really wants to drive forward the expansion of fiber optics is also demonstrated by the constructive cooperation with all stakeholders. But there is still a long way to go, states BREKO Managing Director Dr. Stephan Albers: “Some measures have already been implemented, but there is still a lot to do. In addition to the fastest possible implementation of the outstanding measures by the Federal Ministry for Digital and Transport (BMDV) – in particular a solution for the tactical dual expansion – it will be crucial that the federal states and municipalities also commit themselves even more strongly to the goals of the gigabit strategy and implement the measures quickly in their area of responsibility.”

Standardization of modern installation methods is an important milestone

One success of the gigabit strategy is the completion of DIN 18220 for trenching, milling and ploughing methods in fiber optic expansion, which will be ceremoniously handed over to State Secretary Stefan Schnorr today as part of the BMDV event “One year of gigabit strategy”. It can help to overcome existing reservations among municipalities and approval authorities and is therefore an important step towards the increased use of modern installation methods. These can not only speed up many fiber optic expansion projects, but also conserve resources and thus make them more sustainable compared to traditional open trench construction methods. Ultimately, however, it will depend on how the new standard is applied in the municipalities. We expect that many municipalities will use the new standard and that modern installation methods will be able to make a significantly greater contribution to fiber optic expansion in the future.

Digital approval procedures must be rolled out quickly

The simplification and digitalization of approval procedures is one of the most important measures of the gigabit strategy for fibre optic expansion – specifically the nationwide use of the broadband portal that Hesse and Rhineland-Palatinate have developed as part of the Online Access Act (OZG). As the portal has not yet been sufficiently implemented in practice, we are appealing to the federal states and local authorities to prioritize this important instrument as part of the implementation of the OZG 2.0 so that it can be used promptly. Because once it has been introduced, it will also make work much easier for the relevant authorities. The federal government should support this with educational measures and targeted incentives.

Deutsche Telekom’s dual expansion poses greatest risk to target achievement

It is good that the BMDV is taking the problem of the announced or actual dual fiber optic expansion by Deutsche Telekom and Glasfaser Plus seriously and is having it examined in detail. But the most important thing is that a solution must be found quickly.

The many cases throughout Germany, which appear to be motivated purely by displacement tactics, are causing considerable uncertainty – not only among other market participants, but also among local authorities and citizens in the affected areas. This is because the mostly selective double expansion of particularly lucrative districts jeopardizes the profitability of planned, under construction or existing fibre optic networks of alternative network operators. This has already led to the termination of expansion commitments for larger areas on several occasions. As a result, large parts of the municipalities are not supplied with fiber optics and can then only be developed with the help of state subsidies, which further delays the expansion. And if an alternative network operator decides to stick to its original plans despite double expansion, scarce resources are wasted there that are lacking elsewhere. Deutsche Telekom’s current expansion tactics are therefore putting the achievement of the expansion targets defined in the gigabit strategy in acute danger. The German government must therefore intervene quickly and decisively. As Telekom’s main shareholder, the federal government must exert pressure on Telekom and work towards an end to this economically senseless approach.

Gigabit funding must be evaluated and tightened up

BREKO welcomes the fact that the directive on the realignment of federal gigabit funding came into force in April. However, it must be evaluated in a timely manner whether it is achieving the hoped-for effects and directing funding in a targeted and prioritized manner to the areas where it is most urgently needed. If this is the case, it may be necessary to take swift action, for example to better dovetail the roll-out of fiber optic networks on a commercial basis with the subsidized ones. In the course of this evaluation, it will also be important to take countermeasures if individual federal states exceed the required level of funding procedures. Here, we are particularly concerned about Bavaria and Baden-Württemberg, where by far the most market exploration procedures are currently underway.

Gigabit land register must take greater account of security aspects

The gigabit land register introduced with the gigabit strategy has so far lacked an essential security and access concept. This is because excessive transparency about the route of important fiber optic and supply lines facilitates targeted attacks on these critical infrastructures. The BMDV should develop a security and access concept together with the Federal Ministry of the Interior and Homeland and the relevant security authorities in the near future.

Continuous implementation monitoring required

As announced by the BMDV, a clear and constantly updated implementation monitoring system should be established in a timely manner in order to create transparency regarding the progress of the individual measures.