Gigabit funding: Only 91 million of 8.3 billion euros spent

Of the 8.3 billion euros approved to promote the expansion of fiber optics, only 91 million euros have actually been paid out for the funding years 2021 to 2024, i.e. have actually been billed by the applicants. This is according to an answer from the German government to a question from the CDU/CSU parliamentary group.

The subsidies are only paid out after the subsidized expansion work has been completed and the invoices have been received. The slowness of the process and construction progress is therefore cost-saving for the federal budget: as long as the funds are not actually used, the federal government does not have to take out loans for them and no interest is incurred. In budget parlance, such funds are called "committed" because they are firmly pledged. However, it also means one thing above all: a very large proportion of the planned measures have not been completed even years later.

The difference between approved and spent funds is particularly striking in four federal states: For Mecklenburg-Western Pomerania, almost 500 million euros have been approved over the years – but only 28,146 euros have actually been used and accounted for. Brandenburg is also clearly not managing to implement its broadband projects: only 50,000 euros out of a good 500 million euros have actually been called up. However, the discrepancy between approved and paid is also enormous in the other federal states: in terms of figures, Schleswig-Holstein and Baden-Württemberg are in the best position, having called up every 55th and every 66th funding euro respectively. However, in the case of Baden-Württemberg, this is by no means a sign that broadband expansion is progressing well.

States return funding decisions

A total of 1.65 million connections are to be funded under the Gigabit and Gigabit 2.0 funding programs – and this already excludes the 42,000 connections for which the applicants have since withdrawn. Bavaria is the frontrunner with applications for a total of 115 million euros that were first approved and then withdrawn. The second largest state, Baden-Württemberg, follows with 31.4 million euros, the most populous state, North Rhine-Westphalia, has declared 18.7 million euros no longer necessary and the comparatively small state of Thuringia has released almost 16 million euros in funding.

This comes as no surprise to the industry: "The implementation of funding projects takes an average of seven years and is very complex," says Sven Knapp, head of the capital city office of the German Broadband Association (Breko). The idea that state expansion aid would accelerate gigabit expansion is wrong, he says –, but it is the only option for otherwise uneconomical areas, which is still too complicated. "The next German government should simplify the requirements for gigabit funding and adapt them to expansion practice, and continue exclusively and in a targeted manner in areas where internet coverage is particularly poor and expansion on its own is uneconomical," demands Knapp.

Almost all broadband associations have repeatedly called for funding for broadband expansion to be cut. Digital Minister Volker Wissing (non-party) has changed the funding system for the traffic light coalition and launched a new system for funding applications in 2023, the so-called potential analysis. This should allow funding to be determined more according to need criteria.

North beats south

Since the switch in funding to minimum gigabit connections, i.e. generally fiber optic connections, the focus has been on this part in particular. According to the German government, the north is currently leading the way in terms of gigabit coverage (FTTH or FTTB): Hamburg has an FTTH/B rate of 73.15 percent, the double coastal state of Schleswig-Holstein 62.24 percent, followed by Lower Saxony with 59.53 percent, Mecklenburg-Western Pomerania and Brandenburg with around 45 percent and Bremen with just over 40 percent.

While the most populous federal states of North Rhine-Westphalia (35.32%), Bavaria (31.8%), Hesse (27.54%) and Baden-Württemberg (22.59%) are already well behind, Thuringia and Saarland are fighting over the red lantern: just 15.77% are connected with FTTB or FTTH in the Free State and 16.38% in Saarland. Obviously, state policy decisions have made a massive difference here. What the federal government does not know, however, is how many of the connections are actually used – "Homes Activated" are not recorded separately.

It is currently completely unclear how the probable next federal government intends to deal with these issues. Digital infrastructure is not an issue in the exploratory paper between the CDU/CSU and SPD – However, it is unlikely that gigabit funding will be discontinued altogether. And for the time being, there are still enough unfinished jobs to be done.

(vbr)