The expansion of high-speed fixed-line internet is a crucial aspect of modern society, with the federal government in Germany allocating significant funds for this purpose. However, only a quarter of the allocated funds have been utilized so far, raising concerns about the pace of broadband expansion in the country.
According to the Federal Ministry of Digital Affairs, approximately 16 billion euros have been approved for broadband expansion since 2015, but only more than 4 billion euros have been drawn down. The remaining funds, totaling over 11 billion euros, are currently being used by applicants, with the ministry expecting that all approved funds will be paid out in full.
The federal government’s goal is to have fiber optic connections available everywhere people live and work by 2030. While providers like Deutsche Telekom and Deutsche Glasfaser are expanding significantly, thinly populated areas are often bypassed due to economic unfeasibility. To address this issue, the federal government provides funding to prevent rural regions from being left behind in digital participation.
Fiber optic cables laid directly to homes or apartments (FTTH) offer the best technology for fast and stable data connections. Internet via telephone lines (DSL/VDSL) and network via TV cables (HFC) cannot match the performance of pure fiber optic connections. The federal funds are paid out based on construction progress, with the main part of the approved funds only being paid out several years after approval.
Before funds are paid out, municipalities must conduct a market survey procedure, followed by a tendering process and building applications by companies. Invoices are submitted based on construction progress, with payments made accordingly. The federal government is currently funding over 3,000 expansion projects, creating four million new fiber optic connections.
The Gigabit funding program specifically supports rural, less densely populated, or structurally weak regions. While the expansion is economically driven for 90% of households, state funding remains crucial for areas where economic expansion is not feasible. Despite criticism from telecommunications companies about the lengthy process of state-funded projects, the funded fiber optic expansion is essential for ensuring adequate digital infrastructure in underserved areas.
Recently, the federal government reduced subsidies for fiber optic expansion due to budget constraints, highlighting the ongoing challenges in utilizing allocated funds for high-speed internet expansion. The widespread use of fiber optic cables is crucial for bridging the digital divide in rural areas and ensuring equal access to high-speed internet for all residents.
In conclusion, the slow pace of utilizing allocated funds for high-speed internet expansion underscores the importance of prioritizing fiber optic connections in rural areas. Despite challenges and criticisms, state-funded projects play a vital role in ensuring equitable access to fast and reliable internet services for all residents.