Telefónica CEO Haas: Have not yet earned a euro with fiber optics

Markus Haas, CEO of Telefónica Deutschland, is annoyed by the comparatively low willingness of German citizens to switch to super-fast Internet connections. "So far, no one who has invested in fiber optics in Germany has earned a single euro," the head of the mobile and fixed network operator told the newsletter service Table.Briefings. There is one main reason for the faltering expansion of fiber optics in Germany: high investment costs meet low demand for connections with optical lines.

Unlike in Spain, where Telefónica as the former monopolist switched directly from copper to fiber optics, there was an interim solution here with VDSL, explains Haas. Many German citizens therefore consider their current Internet connection to be sufficient. The benefits of a fiber optic upgrade are therefore difficult to convey. Nevertheless, the manager rejects the idea of an obligation to install optical connection technology in houses or even apartments: "I think it's right not to introduce a technology against the will of customers."

According to the market analysis conducted by the broadband association Breko in April, the fiber optic expansion rate for homes that can generally be connected directly was 48.8% at the end of 2024. This corresponds to 22.5 million households and is an increase of 9.1 percentage points compared to 2023. The number of households actually connected rose to 24.5% (11.3 million). This represents growth of 4.1 percentage points. The take-up rate of fiber optic connections actually used was 26%. This means that only a good quarter of households in Germany actively use this technology, which corresponds to 5.9 million "sold" connections.

Ambivalent signals from Telekom

Timotheus Höttges, CEO of Deutsche Telekom, criticized in January that only 13% of households in Germany were actually using fibre optic lines. However, the Magenta Group itself relied on copper-based VDSL with vectoring for a long time and only slowly switched to fiber optics. Competitors are calling for a plan for a future-proof and smooth copper-to-glass migration. Some providers accuse Telekom of stifling this debate and wanting to continue earning a lot from VDSL marketing.

With its gigabit strategy, the German government, like the EU, is aiming for fiber optics and superfast networks for everyone by 2030. However, the EU Commission recently announced that Germany is lagging well behind the average of the member states in the fixed network in pursuing these goals. In terms of "Fiber to the Premises" (FTTP), Germany's overall coverage in 2024 was only 36.78%. However, the growth rate of 23.4% at least exceeded the EU increase of 8.4%. For households in sparsely populated areas, the situation is even worse, with a connection rate of 33.91%.

(nie)