FROM THE INDUSTRY
have huge existing cable networks in Germany which provides a good quality of service already in large parts of the country. Consequently, we’re finding consumers aren’t really asking for a fast fibre roll out at present.
Others might want to wait five years for that big renovation. The cost is also very high; in Germany customers are not ready to pay double just because it’s fibre. As for example, I have a gigabit with coax at home and that took just a phone call. Nobody destroyed my driveway or excavated my street. Overnight I can get a gigabit, for half the price of fibre. Understandable that things are a bit slower there. Is that culture going to change any time soon? Another reason is overbuild - it isn’t restricted in Germany. Therefore we have experienced big operators building a new network even if there is already an existing one. This not only destroys the business case of the first network, this also reduces the general roll out speed.
DCT Delta AG are experts on the challenges and advancements in Germany’s fibre market. As Ulrich Kiebler, the CEO of Delta is handing over the baton to Volker Braun, we were lucky enough to talk to both of them. Incoming CEO Volker Braun brings his own expertise to this field so we were fortunate to have double the perspective. Compared to the UK, Germany’s landscape features fewer players, but in taking advantage of the slow uptake and complex market conditions, DCT Delta AG are occupying the sweet spot between rapid rollout and technical innovation, enjoying life in Lake Constance in the south of Germany. Volker, tell me about the German market and what sets it apart. Good question, and a difficult one to answer. There was of course a huge hype about fibre in Germany over the last couple of years and with massive investments also from overseas. Increasing costs for material and energy and also the limited availability of resources is slowing down the planned fibre roll out massively. So, the original time schedule will surely be delayed. In the meantime also some of the private investors already stepped out. Additionally the slowing down of the economy has had an impact; there is a lot less money available now. On the other hand, we
Why is that?
Primarily the quality of connection to consumers in Germany is not defined as such by the physical medium. In other words, with coax cable, you get a gigabit connection of reasonably good quality for a reasonably low price. So why should I pay twice for the same connection, just because it’s fibre? The second issue is that building fibre infrastructure doesn’t necessarily mean that people are able to connect. There are those who are desperate and want to connect, but quite often it’s not possible, even though fibre is close by. It is very expensive to lay fibre inside buildings, especially in Germany. We have 37 million households in Germany, of which half are managed by housing associations or are multiple dwelling units.
Primarily the quality of connection to
Say that again?
the consumer in Germany is not defined by the physical medium.
You heard that correctly. Gaining permission to put fibre into a multiple dwelling unit can take years here, because it requires the residents’ unilateral agreement. Some people don’t want it, they say it creates a disturbance.
May 2024 Volume 46 No.2
53
Made with FlippingBook - professional solution for displaying marketing and sales documents online