Leading associations in the German digital economy are calling for a reform of the state funding program for fiber optic expansion. In this way, billions of euros could be saved without delaying the expansion.
The private sector believes that state funding for fiber optic expansion needs to be reformed. The Federal Association of Broadband Communications (BREKO), the Federal Association of Fiber Optic Connections (BUGLAS) and the broadband association ANGA demanded in a joint letter that only one billion euros should be made available in each of the next three years and not three billion as planned. The digital associations Bitkom and VATM joined the demand.
Through more targeted aid and the limitation, a total of six billion euros could be saved by 2026 without affecting the speed of expansion, the associations said. This relief would also be appropriate given the budget situation.
Restriction of the flood of applications is required
The companies involved in the expansion particularly complain about the complex and time-consuming approval procedures and the flood of applications from municipalities. Only around half of the applications have been approved this year. “In order to prevent thousands of municipalities from submitting complex funding applications in the future without any prospect of success, pre-qualification must urgently be introduced,” said the associations. This includes a catalog with clear criteria for approval.
The associations also do not want to forego state funding. In some sparsely populated areas of Germany, expansion with very fast and stable internet is only possible with government help. However, with the current process, construction capacity would often be withdrawn for less urgent projects.
The associations explained that the fear of delays in fiber optic expansion is unfounded, even if government aid is limited. The majority of the projects approved so far are still in the planning phase.
Fiber optic quota at 35 percent
Fiber optic is currently considered the best technology for meeting the increasing data requirements in the Internet age. In 2022, the federal government set the goal of providing at least half of all German households with fast access to the Internet via fiber optics by 2025. According to the VATM association, the rate is currently a good 35 percent.
Deutsche Telekom is the market leader in this technology by a wide margin. At the turn of the year, Telekom’s fiber optics will be available in eight million households, 2.6 million more than at the end of 2022, the group announced.
When it comes to expansion, there are always disputes between Telekom and its competitors. Among other things, they accuse the ex-monopolist of laying fiber optics in areas where cables from other providers are already available. However, this so-called “superstructure” affects less than two percent of the expansion areas, said Telekom manager Srini Gopalan. This includes the telecom fiber optic cables built over by other companies.