The key issues of the roll-out of glass fiber networks in Germany
Why is the German FttX broadband roll-out not progressing as planned? What are the critical points which causes projects to fail during planning, execution and at the end commercially?
We have identified 3 main issues:
- The funding by the government leads to the requirement for open access for 3rd party providers
The requirement for open access for alternative service providers for publically funded networks often leads to unreliable business cases. The risk that 3rd party service providers will pick the most attractive customers without any financial engagement and risk, is for the investing parties a blocking point. - Lack of civil engineering capacity to bring the fiber into the ground
Projects which haven’t taken care for civil engineering resources during the initiation phase, will have problems to realize the network roll-out. The investments into the energy grid, the national-wide broadband roll-out and the coming 5G mobile networks exceed the capacities of the civil engineering industry in Germany by far. The consequences will be higher costs and long delays. - Products are not competitive even after the fiber roll-out
In regions with a fair competition with TV networks, mobile operators and other service providers, the attractiveness of the product mix is the key motivation for a customer to chose one or the other service provider. High bandwidths via FttH is part of the equation, but do not neccessarily motivate the prospects to change the supplier if other components like TV or mobile integration are still missing.
If you want to know more, how to avoid or to solve these issues, please contact us!