Berlin.
Digital Minister Wissing wants to promote broadband expansion and is relying on the private sector. New federal money will flow from April.
The news caused great dissatisfaction in the municipalities in 2022: the federal subsidy pot for the expansion of the fiber optic network emptied. The rush for grants for fast internet was too great. Now Volker Wissing (FDP), Federal Minister for Transport and Digital Affairs, is announcing a new edition. From April, the federal government will again provide three billion euros for the broadband expansion available in 2023.
This was preceded by a potential analysis by the ministry. The result: The majority of the outstanding expansion can be carried out privately in the coming years, i.e. without having to spend state money. More than 90 percent of households and companies in Germany can be connected to the high-speed network by telecommunications companies.
Digital Minister first analyzed the need for funding
Why was the analysis necessary at all? In the past, the demand for the federal subsidy was high. The federal states and municipalities did not have enough money, the telecommunications companies on the other hand are reluctant to let the federal government interfere with their expansion projects and even see the public sector as competition. Because the building capacities are scarce. That’s why the ministry wanted to realign the funding from scratch.
Based on scientific network planning and data from the telecommunications industry, there is now for the first time reliable data on where there are still attractive spots for Internet providers in Germany and where sooner or later the state will have to push ahead with fiber optic expansion. Wissing told our editors: “With the potential analysis, we are implementing another central measure of our gigabit strategy after the gigabit land register.” basis for the new federal funding program. On Thursday evening, the ministry was still in talks with the responsible state ministries about the cornerstones of the funding guideline. The industry was also included.
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The analysis was originally planned for winter 2022, but the ministry needed a few months longer. That’s why you hire the countries Online portal available, which shows district-by-district where there is still a need for fast internet. “With this instrument, the municipalities are now in a much better position when it comes to getting the most out of their own economic expansion and limiting state expansion funding to the necessary level,” says Wissing. The FDP politician also makes the states responsible: “Now it’s up to the municipalities to actively use the new instrument to accelerate the gigabit expansion.” The aim is to exploit the potential of private investments as best as possible.
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Thuringia and Rhineland-Palatinate lag behind
Because not all federal states are apparently looking for a conversation with the telecommunications companies. According to the expansion analysis, Thuringia and Rhineland-Palatinate bring up the rear: less than 40 percent of the potential has been tapped there. Here should now industry dialogues be introduced to increase private expansion.
Why is it sometimes less attractive for the private sector to invest themselves? There are fewer potential customers in sparsely populated areas, so many lines have to be laid here for a few connections. In the city states like Hamburg and Bremen there is already a dense network of pipes. Geographical conditions such as mountains also make it more difficult to lay cables. Another reason for poor fiber optic coverage can be high utilization of civil engineering companies.
The push from Wissing’s ministry follows traditional FDP method: Rather rely on private sector commitment than on state funding. Only where the market fails does the state step in to erase the gray patches on the fiber optic map.
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