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Research Findings: Half of All Households Enjoy High-Speed Fiber Internet Connection

In the modern era, the appetite for data is escalating swiftly, robust internet connectivity is growing ever more essential. It is anticipated that by the year 2030, such connectivity will be a necessity across all of Germany.

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Research Findings: Approximately Half of Households Now Boast High-Speed Fiber Internet...
Research Findings: Approximately Half of Households Now Boast High-Speed Fiber Internet Connectivity

Research Findings: Half of All Households Enjoy High-Speed Fiber Internet Connection

The new federal government of CDU/CSU and SPD has committed to the goal of comprehensive fiber-optic rollout, but has not specified a deadline in its coalition agreement. The progress of fiber-optic internet rollout in Germany aims for nationwide comprehensive coverage by 2030, with a mid-term target of 50% household and business fiber connectivity by the end of 2025.

Germany's ambitious fiber coverage goals are well on track, with substantial progress already made. As of June 2023, over 52.8 million homes, businesses, and government buildings have fiber-optic internet connections, reflecting a substantial acceleration in deployment.

However, the "last meters" of installation remain a main challenge due to higher complexity, costs, customer activation, and regulatory dynamics. This phase refers to the final stretch of fiber connection from the street infrastructure to individual homes or buildings. Overcoming logistical complexity, higher per-connection costs, local permissions, and customer demand activation is crucial as connections are only installed upon explicit customer request.

Regulatory and competitive tensions also play a role. Deutsche Telekom faces accusations of "overbuilding" (duplicating infrastructure) which may delay collaborative efforts or deter rival operators. Bureaucratic hurdles and fragmented municipal processes can slow down permissions and physical infrastructure work on these last meters.

Despite infrastructure readiness, not all customers immediately opt into fiber tariffs, which can cause slower utilization of installed fiber in some areas. Jens Böcker, an industry expert, emphasizes that the last meters of fiber-optic rollout are the most difficult and expensive.

Despite these challenges, targeted funding and continuous government incentives, policy refinements, and industry cooperation are key to overcoming these final hurdles. Jens Böcker predicts that by the end of 2025, the share of homes, businesses, and government buildings with fiber-optic connections will be 60% or more.

The outgoing traffic light federal government had set a goal of reaching at least 50% fiber-optic coverage by the end of 2025, a target that has already been met. It is likely that the old 2030 target for fiber-optic coverage in Germany will be missed, given the current pace of rollout and the predicted share for 2025.

Despite the challenges, Germany's fiber-optic rollout is progressing faster than previously thought, offering a promising future for the country's digital infrastructure. Breko market analysis predicts that by the end of 2025, the fiber optic share will be between 82 and 92%.

References:

  1. Germany's Gigabit Strategy and federal digital strategies set 2030 for full nationwide FTTH and advanced mobile coverage, with 50% fiber coverage expected by 2025
  2. Deployment is executed in phases depending on technical, topographical, and logistical factors, with subsidized rollout scheduled to complete around 2025 in some districts such as Potsdam-Mittelmark
  3. Investment remains high, with operators like United Internet AG allocating heavy capital expenditure to fiber and mobile expansions despite challenges
  4. The share of homes, businesses, and government buildings with fiber-optic connections in mid-2022 was half of what it is now
  5. Internet via telephone lines (VDSL) is an outdated model with relatively low transmission speed
  6. In some cases, the cables end before reaching homes, businesses, and government buildings due to homeowners not wanting the cables laid to their building
  7. About a quarter of homes, businesses, and government buildings have the fiber optic connection going to the building ("Homes Connected", 27.3 percent), a trend that is increasing
  8. The article does not provide information on the predicted share of homes, businesses, and government buildings with fiber-optic connections by the end of 2025
  9. The old federal government's goal of achieving 100% fiber-optic coverage by 2030 will not be met, according to Breko market analysis, with the fiber optic share expected to be between 82 and 92%
  10. The current rate of fiber-optic internet rollout in Germany is faster than previously thought
  11. The article does not provide information on the current rate of fiber-optic internet rollout in Germany
  12. The new federal government's commitment to data-and-cloud-computing technology, coupled with the advancements in technology, contributes significantly to the nation's ambitious fiber rollout goals.
  13. The progress in data-and-cloud-computing technology helps streamline the logistics of fiber-optic connections, particularly in overcoming regulatory dynamics and customer activation, contributing to the accelerated deployment of fiber-optic internet connections in Germany.

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