Where does Germany stand with its fiber optic rollout today? This question is of high relevance for our increasingly digitized economy and society. The fiber optic rollout is progressing. However, the goal of ensuring nationwide coverage by 2030 is currently at risk. This is due to several factors. Matthias Lehniger, Business Area Leader TI Fixed Network & Mobile at Axians Germany, sheds light on these factors and potential solutions that are already in use both nationally and internationally in his contribution.

A high-performance fiber optic network forms the backbone of modern communication infrastructures and is essential for Germany’s competitiveness on the international stage. For this reason, the federal government has set the goal of a nationwide fiber optic rollout by 2030. Some milestones have already been reached.

Where do we really stand?

A close look at the figures from the BREKO Market Analysis 2024 reveals the true state of fiber optic rollout in Germany – and uncovers some central challenges. As of June 30, 2024, the fiber optic rollout rate (Homes Passed) stands at 43.2%. This means that approximately 19.9 million residential units, businesses, and public facilities are technically connected to the fiber optic network.

However, this figure alone paints an incomplete picture: “Homes Passed” merely describes the possibility of a connection, i.e., the reach of fiber optic cables to a building or property – not the actual usage by end consumers. Significantly lower is the fiber optic connection rate (Homes Connected), which includes the actual connections to the network. As of the same date, this stands at just 22.8%, or around 10.5 million connections. This reveals a gap between technical availability and actual implementation.

The gap between availability and usage of fiber optic connections

The “take-up rate,” or the actively used connections, is also interesting in this context. It describes the proportion of actually active fiber optic connections (“Homes Activated”) relative to available connections (“Homes Passed”). In Germany, the take-up rate currently stands at just 26% – an indication that many households and businesses do not switch to fiber optic despite technical availability.

One reason for the low take-up rate of fiber optic connections in Germany could be the comparatively high costs, both for installation and ongoing fees, which deter many households. Additionally, many find the process of switching from existing connections to fiber optic to be cumbersome and complicated. Information gaps also play a role: many users are not sufficiently aware of the benefits of fiber optic or receive unclear information about the actual costs and benefits. Finally, current satisfaction with existing technologies like DSL also plays a part, as many consider it sufficient.

All of this results in only around 11% of households being directly connected to the fiber optic network, according to OECD figures (as of December 2023). Since then, however, this rate has likely improved significantly. Other countries fare positively in the statistics, though they also have different conditions than Germany. Countries like Sweden or Spain achieve quotas of 75-90%. South Korea leads globally with a supply rate of nearly 90%.

Diverse hurdles hinder fiber optic rollout

The slowed progress of fiber optic rollout in Germany can be attributed to a range of structural, technical, and regulatory challenges.

A central issue is the lengthy approval processes that significantly delay rollout, particularly in rural areas, leading to extensive white spots, as my colleague Matthias Lehniger illustrates in his article.

At the same time, construction capacities are limited, a situation exacerbated by the skilled labor shortage in the industry. Many construction companies are operating at full capacity, causing projects to progress more slowly than planned. High costs also impede fiber optic rollout.

Private network operators primarily focus on economically attractive areas, while rural regions often rely on state funding. However, these funds are slow to materialize, and there is often a lack of clear coordination between the federal government, states, and municipalities. Additionally, households and businesses still hesitate to use an existing fiber optic connection, whether due to financial reasons or a lack of information about the benefits.

Technical and organizational solutions available

Solutions to these challenges already exist, as both national and international examples demonstrate. Technological innovations such as so-called micro-trenching, which Axians successfully employs, enable faster, more cost-efficient, and sustainable laying of fiber-optic cables, as I have previously explained for Digital Chiefs. This method involves cutting narrow trenches, significantly reducing construction time. Utilizing existing infrastructures, such as power lines, could also accelerate deployment. Additionally, overhead installation of fiber-optic cables allows for a much faster and more cost-effective rollout, especially in rural areas, as this article illustrates.

At the same time, Open Access models, successfully implemented in Sweden, could also provide new impetus in Germany. In Sweden, once fiber-optic cables are laid, they must be shared by all providers. This prevents costly and inefficient duplicate structures and allows network operators to focus on new expansion areas. Another exemplary case is Spain, where fiber-optic deployment is centrally coordinated. Simplifying bureaucratic hurdles and clear prioritization significantly accelerate progress there. In Germany, a centrally controlled strategy could also help overcome fragmented structures and make expansion more efficient.

How Axians is driving fiber optic expansion in Germany

To achieve the ambitious goal of nationwide fiber optic coverage by 2030, a concerted effort from politics, industry, and society is required.

Lengthy approval processes, a shortage of skilled workers, and the gap between technical availability and actual usage must be overcome.

At the same time, more courage is needed to make fiber optic expansion more efficient and faster through technological innovations such as micro-trenching, alternative laying methods like overhead lines, centrally controlled expansion plans, and open access models.

Experienced ICT partners like Axians play a central role in this endeavor. Since 2005, we have been supporting network operators, municipalities, and companies as a general contractor with our comprehensive portfolio to significantly advance fiber optic expansion in Germany.

From planning and design to implementation and operation, Axians offers all relevant services from a single source.

At Axians, we carefully consider which laying method is best suited for the specific situation during fiber optic expansion and place particular emphasis on proceeding in a sustainable and efficient manner. Our portfolio includes a variety of methods, such as flushing drilling, civil engineering procedures, and overhead laying methods, to optimally meet diverse requirements.

We rely on innovative technologies, such as precise network planning software and intelligent control systems, to realize expansion projects faster and more efficiently. For more information about Axians’ service portfolio in this area, click here.

Source title image: Adobe Stock / GreenOptix