Gigabit Declaration: Government & Industry Set KPIs for Network Expansion

The Federal Ministry for Digital Affairs is close to finalizing a far-reaching agreement for the expansion of fiber optic and mobile networks. A draft of the declaration of intent, obtained by heise online, states: The parties have agreed on a system of guiding performance indicators to make infrastructural progress precisely measurable in the future.

The planned Memorandum of Understanding (MoU) titled “Best Network for Germany” is to be published on June 8. The signing was actually planned for the first quarter of 2026, but was delayed due to debates about data provision, among other things.

It is now said from the negotiation circle that a consensus could be reached last week. The document bundles the interests of the federal government, the states, municipal umbrella organizations, and the leading telecommunications companies and industry associations. Particularly contentious decisions, such as the design of the migration from copper to fiber optic networks and the ongoing amendment of the Telecommunications Act (TKG), were omitted by the parties involved to avoid jeopardizing the outcome.

Transparency through hard key figures

The core of the agreement is the introduction of so-called Key Performance Indicators (KPIs). They are to be updated semi-annually and will essentially draw on data already collected by the Federal Network Agency. This foundation is supplemented by targeted inquiries to companies, associations, and the states and municipalities.

Detailed parameters of the infrastructure are recorded. These include the expansion stages achieved in the fiber optic sector, broken down by the deployment status to the building (Homes Passed), the actual connection (Homes Connected), and activation by the customer (Homes Activated). The rate for a corresponding contract is currently only 15 percent.

Mobile network coverage is depicted by the number of base stations, 5G coverage, and the expansion plan for the next twelve months. Furthermore, key figures on service competition, the use of digital approval processes, and the average processing time for applications are to be focused on.

Reporting obligations were one of the sticking points. The telcos were initially not enthusiastic about taking on additional administrative burdens and having to provide extensive insights into their data. The draft states that no new bureaucratic hurdles are to be created and business secrets are to be protected. However, the companies must agree to the transfer of their data by the regulatory authority to the ministry.

Digital Approvals

Based on these data flows, the ministry, in return, commits to creating a reliable, nationwide expansion forecast. This is intended to provide municipalities with planning security at an early stage and, ideally, make time-consuming funding applications unnecessary.

In parallel, the states and municipalities promise process acceleration. Building permits are to be standardized through the widespread use of digital application procedures. The industry, in turn, pledges significant investments for the next three years. The amount of this sum is still open. The signatories commit to open network access for third-party providers (“Open Access”) and intend to continue the dialogue on a permanent platform.

(nie)