Suppliers want to raise prices soon

von Claus Ludewig
At Fiberdays 22, which took place on June 14, 2022, industry reps explained that fiber optic connection providers intend to raise prices soon.

Depending on the provider, you currently pay between € 70 and € 90 per month for an Internet contract with fiber optics and downloads at 1,000 Mbit / s. In the future, such contracts will become more expensive, as Jürgen Hansjosten, managing director of the Infrafiber infrastructure fund, explains. In addition to the increase in costs for expansion, a double-digit inflation rate is expected in the next year, so that there is a “compulsion” to push prices up. Since 1997, the cost of fixed Internet in Germany has decreased year on year, with the exception of 2002. The statements were made at the Fiberdays 22 conference held by the Federal Broadband Communications Association on June 14 in Wiesbaden.

By 2030 there should be fiber optics nationwide in Germany

As Deutsche Giga-Netz sales manager Soeren Wendler explains to Fiberdays 22, a number of smaller suppliers are expected to die soon. By 2025 at the latest, many regional Internet providers will no longer have a chance to survive in the market. If Stefan Holighaus, a member of the management of the fiber optic provider DNS: NET, has the way of him, a large provider will start with price increases first. All other suppliers will follow suit within three months. In general, many Fiberdays 22 attendees criticize the fact that broadband expansion needs to be accelerated so quickly. Finally, there is a shortage of skilled workers on the construction and official side. Furthermore, construction costs are currently on the rise due to inflation. Without licensing reforms, there could also be a tough struggle to expand fiber optics. There are uncertainties in the industry regarding future government funding for gigabit expansion. The goal is to have fiber optics everywhere in Germany by 2030.

As of mid-2021, there have been around 29.3 million fixed internet connections across Germany which are, in theory, gigabit compatible. Here, both the cable connections according to Docsis 3.1 and the fiber optic cables are combined. A year later, the number of fixed internet connections with gigabit capacity increased to 35.8 million, of which over 10 million are fiber optic connections.

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Compilation on the increase in the prices of fiber optic links:

  • At Fiberdays 22, telecom industry representatives said there will soon be a price hike for fiber optic users.
  • Suppliers are expected to pass the rising costs of expansion and inflation, which could be double-digit next year, to end customers. Fiber optic contracts with a gigabit currently cost between 70 and 90 euros per month.
  • Market consolidation is expected by 2025 at the latest, so that regional suppliers no longer survive.
  • There should be a nationwide fiber optic network in Germany by 2030, but it is unclear what state support will be like. There are currently more than 10 million fiber optic connections in Germany.

Source: Heise

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