In the future, millions of tenants in Germany will have fiber optic cables installed in their homes more quickly and easily. Such lines enable faster and more stable Internet connections. The Federal Association of German Housing and Real Estate Companies (GdW) and the telecommunications group Vodafone Germany have concluded a corresponding agreement. GdW member companies own a third of German rental apartments. In the future, these real estate companies will be able to order fiber optic cables for their houses using advantageous standard contracts.
The cables are laid by OXG, a joint venture between Vodafone and the French telecommunications group Altice. OXG waives the so-called pre-marketing quota. Such a quota means that telecommunications companies only connect apartment blocks to the fiber optic network if enough tenants have previously agreed to order the expensive, fast Internet packages.
Vodafone Germany boss Philippe Rogge says the agreement with GdW will bring fiber optics to residential properties “easier and faster than usual on the market – in both small and large ones.” The group estimates that up to two million tenants at GdW companies could benefit from the partnership.
Homeowners or tenants do not have to pay OXG anything for the company to lay the pipes. Once the fiber optic cables have arrived in the apartments, Vodafone will first make the tenants an offer for internet packages. Tenants are also allowed to book fast internet elsewhere; Rivals like Deutsche Telekom can also use the new cables. Telekom closed a similar one in May Agreement with the GdW away.
Cable TV customers will soon need new contracts
It is important for Vodafone to attract new Internet customers in rental apartments. Because next July the company will lose some tenants as cable TV customers. Up to now, homeowners have been able to book cable television for all apartments and simply have the expenses repeated by the tenants via the utility bill. This gives Vodafone 8.5 million loyal cable TV customers – no other telecommunications company benefits so much from the regulation. However, this compulsory happiness is from July onwards no longer allowed. Tenants then have to conclude individual cable contracts. Or they leave it alone if they don’t need it. Or they change provider. Vodafone will suffer from these departures.