The debate about fiber optic expansion is becoming a political issue

Federal states such as Bavaria and Rhineland-Palatinate warn against changing the existing funding. So far, for example, mayors can ask all possible investors whether they want to expand in their sovereign territory in the next three years. If no one reports to this market investigation process, then they can use money from the federal, state and local authorities to get companies to do so. In recent years, funding projects have emerged wherever there were no high-speed networks.

Countries like Lower Saxony and Hesse, on the other hand, don’t think much of it. Hesse’s Digital Minister Kristina Simenus (CDU) says: “In my opinion, the market investigation process has had its day.” She calls for “a paradigm shift”, since from next year the state will be allowed to subsidize wherever there is no fiber optics, i.e. in four out of five households .

Together with her party friend and colleague Bernd Althusmann, Simenus has drawn up a proposal that, like the traffic light coalition in the federal government, provides for potential analyzes: According to this, companies should say less long-term where they want to expand, but should provide regular information on the status.

It quickly becomes clear where an expansion is not worthwhile. Their position paper states: “Potential areas for self-sufficient expansion must be identified and development areas prioritized.”

Althusmann told the Handelsblatt: “A private-sector and subsidized expansion coordinated through a potential analysis can lead to a fast, nationwide supply of gigabit-capable connections.” It must apply: “Market before state”.

Rhineland-Palatinate still sees unanswered questions

Bavaria’s Finance Minister Albert Füracker (CSU) is against it. “My goal is to get gigabit coverage across the board as quickly as possible.” The local mayors would know best where the need is, companies often don’t invest. “Every delay is at the expense of the people, especially in rural areas,” the CSU politician recently warned in the Handelsblatt.

Rhineland-Palatinate also relies on federal funding. Everything that “brings speed” should be checked, said Digital State Secretary Fedor Ruhose. However, there are still questions that need to be clarified. He is critical of the fact that in future companies will only have to say non-bindingly where they will expand.

These areas are then blocked for funding. But what if the company doesn’t build after all? “In the end, even the expansion dynamics could be weakened and we achieve the opposite of what the proposal is intended to achieve,” Ruhose points out.

Hesse and Lower Saxony are calling for the federal government to help municipalities with increased funding to connect the last five percent of addresses in the state to the fiber optic network. 95 percent would be “market-driven expanded”.

Companies rely heavily on fiber optics

The position paper says: “Municipalities should only get involved in the subsidized infrastructure expansion if the market-driven expansion does not cover all addresses in the economically developed expansion area.” That’s how long the mayors would have to wait.

The companies point to the many pension and infrastructure funds that have since invested in fiber optic expansion. There is enough money in the market to expand the network by around 2030. A member survey by the association of municipal companies and the industry association Buglas showed, for example, that the companies are now fully committed to fiber optics. The survey is available to the Handelsblatt.

Accordingly, they invest 93 percent in fiber optic connections to the house or even to the apartment. Every second connection was actually booked, an above-average value. According to the Federal Network Agency, fiber optic network operators had 1.9 million of 6.6 million potential customers under contract at the end of 2020.

Hesse and Rhineland-Palatinate have also already started digitizing the approval procedures as part of the Online Access Act in order to save time. And with the change in the state’s building regulations, mobile communications expansion has been accelerated in Hesse, reported Digital Minister Simenus.

Minister Wissing is planning corrections

A response from the federal government to a request from the left shows how complicated the procedures are, for example in the expansion of mobile communications. In 2020, the then Infrastructure Minister Andreas Scheuer (CSU) founded a mobile communications infrastructure company. It should identify dead spots, find locations for cell towers, and tender for the construction and operation of the towers. There, too, there are market investigation procedures, as in the case of broadband expansion.

Since then, however, not a radio mast has been set up, as the federal government confirmed to budget politician Viktor Perli (left). The company is “currently busy with the preparatory process for the first locations,” the answer said. Only then could the calls for funding start and the federal government could approve funds. The federal government expects the “first calls for funding” for the current year.

Accordingly, not a cent of the estimated 266 million euros was spent last year. 145 million euros are planned for 2022, with 371 million reserved for later years. “The millions in subsidies for the faster expansion have completely evaporated,” criticized the housekeeper Perli.

The poor network coverage in rural areas, on railway lines and motorways is the result of the government’s far too lax supply requirements for operators. “Telekom, Vodafone and Telefónica do not need public funds, but rather clear expansion requirements with appropriate sanctions,” he demanded.
In fact, Wissing is planning to make appropriate corrections to the allocation of radio frequencies. Like the new funding for broadband expansion, they should become part of the gigabit strategy.

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