Berlin/Bonn, 17.07.24 – With the federal budget 2025, the Federal Cabinet today approved almost three billion euros for the promotion of fiber optic expansion in Germany. Sven Knapp, Head of the Capital Office of the German Broadband Association (BREKO), explains:

“In a draft budget dominated by austerity, the traffic light could easily have provided relief in one area: gigabit funding. With a planned three billion euros, too much state money will continue to flow into the market next year. A long-term, targeted funding policy with a maximum funding amount of one billion euros per year would give fiber optic expansion more impetus overall. In this way, fewer areas would be subsidized that could also be developed with the significantly faster, private-sector expansion.

Gigabit funding is and remains important. However, it must be used in a targeted and measured manner in areas where it is not possible to roll out the network economically. In addition, the federal government should find new ways to use the available funds more effectively in order to achieve its goal of nationwide fiber optic expansion as quickly as possible.

One approach would be to use some of the funding in a more targeted and unbureaucratic way. The idea: In uneconomical areas, citizens and companies receive money back from the state for their fiber optic connection. With such fiber optic vouchers, areas that are not yet economically viable could be made profitable for network operators and a lot of tax money could be saved.

The federal government could also do some educational work. Saxony-Anhalt’s recent “We need it!” campaign was a smart way of communicating the benefits of fiber optics for consumers. Such a campaign at federal level would be a strong commitment to fiber optic technology – and would only cost a very small part of the funds budgeted for gigabit funding.”