EU election: Digital infrastructure in Germany - overtaken on the data highway

The expansion of fiber optics is stalling considerably and there are gaps in the 5G networks in rural areas. We show where Germany stands in an EU comparison.

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Germany is lagging behind in terms of digital infrastructure compared to the rest of the EU. This applies in particular to the expansion of fiber optics and 5G networks in rural areas.

(Image: Midjourney, Bearbeitung von heise online)

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Germany is considered by many to be a technology leader in Europe. This may be true in areas such as electrical engineering, mechanical engineering or the chemical/pharmaceutical industry, but not in terms of digital infrastructure. According to the Digital Economy and Society Index (DESI), internet speed and mobile communications in Germany are lacking in some areas. This article explains why this is the case and how the country compares to other European countries.

Digital infrastructure refers to a country's telecommunications infrastructure, which is divided into wired fixed networks and mobile networks. With the growth of the Internet, the beginning of the commercialization of the World Wide Web and the increasing spread of mobile telephony, data highways have gained enormously in importance. An efficient digital infrastructure is the essential basis for the digital transformation and has become one of the most important competitive factors for business and science. Private companies provide the digital infrastructure. The three largest network operators are currently Deutsche Telekom, Telefónica Deutschland and Vodafone. There are also dozens of other companies, such as local internet providers with municipal networks or backbone operators that connect internet nodes via fiber optics.

In order to measure technological progress and digital development in the 27 member states, the EU launched the "Digital Economy and Society Index" (DESI) from 2014 to 2022. This measured the development of the digital economy and society in the EU member states in four main categories: 1. digital skills of the population ("human capital"), 2. connectivity, 3. digital integration and 4. digital public services.

At 13th place, Germany is above the EU average, but only in the middle of the European countries. The DESI ranking is led by Finland (1st), Denmark (2nd) and the Netherlands (3rd). The last places are occupied by Estonia (25th), Bulgaria (26th) and Romania (27th). Although the study ended in 2022, the DESI results continue to have an impact and also influence the EU's "Digital Decade" project. This is because the declared goal of the German government and its digital strategy is to be among the European top 10 by 2025.

Europawahl 2024

To become even more digital by 2030, the European Union has proclaimed the "Digital Decade". This political project covers various areas, such as digital skills, digital transformation in companies, the digitalization of public services and a secure and sustainable digital infrastructure.

In her State of the Union speech in 2020, Commission President Ursula von der Leyen declared: "We want to focus our investments on secure connectivity, on the expansion of 5G, 6G and fiber optics". A year later, she announced with a grand gesture: "We will invest in 5G and fiber in an unprecedented way". The political parties also agree on this point, but pursue different goals in their European election manifestos and therefore propose different digital policy measures – more on this later in the article.

The DESI records digital infrastructures under the term "connectivity" with a total of four main indicators. These include the spread of fixed broadband connections and coverage, mobile broadband and tariff prices for end customers. Denmark, the Netherlands, and Spain occupy the top three places. Poland, Estonia, and Belgium bring up the rear in this category of the DESI. Connectivity is the only major category in the DESI in which Germany is well above the EU average - namely in 4th place. This is because Germany made progress in most connectivity indicators for fixed networks in 2021. Germany has achieved 96% coverage with fast broadband, which is a solid foundation for digital participation in society and the economy.

However, the composition of this category from four different indicators can also create a distorted picture. For example, although Germany is in fourth place for connectivity, it has a lot of catching up to do in terms of fixed and, above all, mobile broadband coverage and fiber optic expansion in rural regions. The same applies to Romania, which is in last place in the overall DESI ranking, but is in the midfield in terms of connectivity and even in the top field in terms of broadband prices.

The four connectivity indicators: fixed broadband penetration (blue) and coverage (red), mobile broadband (yellow) and tariff prices for end customers (green).

(Image: DESI 2022; Europäische Kommission)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.