Fiber optics: New round of gigabit funding 2.0 begins ahead of schedule

The Federal Ministry for Digital and Transport Affairs (BMDV) surprisingly launched Gigabit Funding 2.0 on Thursday before the federal elections in February. With this early announcement, it wants to send "a clear signal for the further expansion of future-proof digital infrastructures". The funding calls comprise a total budget of 1.2 billion euros. The sum was roughly expected with the draft bill for the 2025 budget, which the federal government launched in August. At the time, it was stated that the actual funding in 2025 would be around one billion euros. The BMDV had previously announced that the federal government would have to significantly reduce the state pot for gigabit expansion due to tight budgets.

The BMDV only launched the 2024 funding round with a total of 3 billion euros at the beginning of May. The focus of the initiative for 2025 is once again the infrastructure funding call, which includes standard expansion projects as well as the so-called fast lane procedure. The latter is intended to provide previously unserved and underserved locations with fiber optics as quickly and efficiently as possible. The requirements remain largely unchanged and are based on the framework conditions of the previous year. This includes a "points compass", which is intended to make it easier for local authorities to forecast the likelihood of success of a potential funding application.

The new pilot program for closing gaps introduced in 2024 will also be continued. The aim is to leverage synergies between private and subsidized projects in localities and to connect households that are particularly difficult to reach in one go. The excavators will not have to roll in a second time. A simplified application procedure applies. The upper limit is now one million euros per project; initially it was 500,000 euros. At 40 million euros, the total budget of the Gap Closure Program is less than four percent of the total funding pot.

Many municipalities submit hopeless funding applications

In 2024, 2 billion euros in federal funds were invested in fiber optic expansion as part of over 560 projects, the BMDV announced. This enabled the funding of more than 440,000 connections and benefited around 1,700 municipalities. These figures illustrate the effectiveness of the funding and its importance as a "central building block for the development of a future-proof digital infrastructure". A total of around 4.3 million connections have now been realized thanks to the federal government's gigabit funding. However, priority continues to be given to the expansion of the network on a commercial basis.

"Our goals set out in the gigabit strategy remain clear," emphasized Digital Minister Volker Wissing (non-party). The government remains focused on the goal of nationwide gigabit coverage by 2030. The focus also remains on private sector expansion and targeted funding measures as a supplement. Support would be provided to regions where private investors have reached their limits. The aim is to create "digital participation for all".

"Considering the significant reduction in funding compared to 2024, the BMDV should have adjusted the criteria for applications," demands Sven Knapp, Head of the Capital Office at the German Broadband Association (Breko). The federal government must ensure "that funding procedures are only initiated in municipalities that have a realistic chance of being approved". As early as 2024, 90 percent more funding had been applied for than was available. There is now a risk that "even more municipalities will submit hopeless applications for funding in 2025". According to Knapp, the gap-filling program should be "significantly increased". In general, the early call "is also fraught with considerable uncertainty, considering the provisional budget management that is likely to continue for many months to come". The next federal government should use part of the funding for fiber optic vouchers.

(vbr)