Deutsche Telekom plans to supply all households with fiber optics by 2030

The German Telekom currently has only 2.2 million of the 41.5 million private households connected to the fiber optic network. During the Network Day 2020, the Group therefore announced that it aims to increase the "Number one in fiber optics" to become.

To this end, according to recently published details, Telekom wants to provide 1.2 million more households with fiber-optic connections in 2021. By the end of 2021, ten million households are to be connected with gigabit speeds via fiber in the Internet surf.

To finance the expansion, an increase in investment from the current maximum of two billion euros per year to a maximum of 2.5 billion euros per year by 2024 is planned. Currently, the investment budget includes not only fiber optics but also super vectoring, a DSL connection that runs over conventional copper cables. In the future, the targeted EUR 2.5 billion per year will then be allocated exclusively to fiber to the home (FTTH) or fiber to the basement (FTTB).

Complete expansion by 2030

Telekom wants to connect all households in Germany to the fiber optic network by the end of 2030. Whether people actually have a corresponding Contract or whether the line will not be used for the time being should not be taken into account in the expansion.

In order to be able to realize the complete coverage, cooperations with competitors and other companies are necessary. One option, for example, is the Deutsche Bahn, which has announced that it will be Entire rail network with glass fibre supply. Any capacity not required is to be leased to companies such as Deutsche Telekom.

Cooperation with local network operators

Telekom has also already concluded cooperation agreements with various local network operators. These include the Glasfaser Nordwest joint venture with EWE Tel, and the cooperation with Deutsche Glasfaser in North Rhine-Westphalia (NRW). Telekom also recently extended its cooperation with Cologne-based network operator Netcologne by a further ten years.

In the process, the companies also extended their cooperation to the fiber optic network. Both partners grant each other access to their network as part of the agreement. They can thus connect FTTH lines via the partner's infrastructure without having to expand the region themselves. Telekom thus reaches around two million households in the Cologne and Aachen region.

Double gigabit expansion?

Critics of the planned expansion criticize the fact that many of the households that Telekom wants to prioritize for fiber optics by the end of 2024 already have a gigabit connection. Telekom's plans could therefore lead to a "double expansion", while other regions will continue to be supplied only with slow connections.

Telekom's goal is therefore primarily to improve its market share in the profitable metropolitan areas. In rural areas, on the other hand, expansion will initially only take place in areas where there is state support.