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

Page 3: This is how good the mobile network is in Germany

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In terms of 5G spectrum and 5G coverage, Germany has particularly good mobile network coverage. The three major mobile network providers Deutsche Telekom, Vodafone and Telefónica have successively expanded their networks since 2021. 87% of populated areas in Germany are now covered by 5G. It is interesting to note that around 50% of populated rural areas are also covered by 5G. In January 2022, almost 57.5% of the entire area of Germany was covered by 5G. The German government has taken various measures to improve coverage in rural areas, the so-called "white spots", where there is currently no or only a 2G network connection.

On the one hand, there is a federal mobile communications funding program with a budget of 1.1 billion euros to subsidize 5G-capable mobile communications sites with at least 4G coverage. On the other hand, the Mobile Infrastructure Company (MIG) has completed around 111 public consultations by 2021, the results of which indicate that the majority of these "white target areas" are to be supplied by the mobile network operators and at their expense. The remaining "white spots" without 5G coverage are to be developed through separate funding regulations, targeted state funding, and with the help of the Mobile Infrastructure Company. The company is tasked with finding possible sites for mobile phone masts and preparing the corresponding approval procedures.

The DESI has also compiled a broadband price index, which records the prices of representative baskets of fixed, mobile and broadband offers in the EU Member States. It includes the prices of more than 30 representative broadband baskets with different speeds and different products, i.e., a selection of offers for each country. This basket is presented as a score from 0 to 100, with 100 representing the lowest price.

Germany ranks 8th with a score of 80, indicating that its broadband prices are lower than the EU average of 72. Compared to similar countries, Germany offers more affordable broadband than France (75), Austria (73), and the Netherlands (68). However, the cheapest broadband prices can be found in Poland (86), Lithuania (89), and Romania (96), which outperform Germany in this aspect.In contrast, prices are highest in Belgium (56), Croatia (57) and Greece (57), which is surprising given the wage and price levels in the latter two countries.

While connectivity in Germany is stable according to the DESI and broadband prices are acceptable to affordable, the user experience appears to be different. The DESI does not measure the user experience, as aspects such as the device used, the environmental conditions, the number of simultaneous users and the network capacity influence the comparability of the individual user experience. Nevertheless, according to a Studie by the social and market research company Ipsos, many citizens are dissatisfied: Only 32 percent of those surveyed consider the digital infrastructure in Germany to be good. In other European countries, satisfaction is significantly higher. In the Netherlands (75%), Sweden (71%), Spain (65%) and France (64%), for example, many respondents have high-performance, high-capacity internet or even fast fiber-optic networks and rate their country's digital infrastructure as predominantly positive.

The broadband price index summarizes the offer in the individual countries. With a value of 80, Germany has more favorable broadband prices than the Netherlands, for example.

(Image: Europäische Kommission, basierend auf Empirica (Studie über Breitbandpreise für Endkunden))

Alongside cybersecurity, digital sovereignty, key technologies and cloud computing, digital infrastructure is one of the five thematic areas of the European Union's digital and digitalization policy. The parties see different economic and political challenges in digitization and accordingly set different priorities and goals in their Wahlprogrammen for the European elections:

  • The CDU/CSU is calling for a single European market, including in the digital sphere. This should be a digital and data union with modern competition law and a stable digital infrastructure. The digital markets should be regulated as little as possible and there should also be a nationwide mobile network expansion of 5G/6G and corresponding access in every region.
  • For the Greens, the development of a resilient and environmentally friendly digital infrastructure is of central importance. The party is calling for a Digital Sustainability Act for digital sustainability standards, as well as carbon capture storage and other technological processes to reduce CO2. Green digital policy aims to strengthen players through a European infrastructure, promote digital offerings "Made in Europe", enforce transparent AI regulation at a global level and safeguard the EU AI Act.
  • The SPD is striving for a digital union. A common European value base and a human-centric approach to digital transformation should help to master the challenges of digitalization. They want to promote European research and innovation (quantum computing, European AI models and clean tech), minimize dependence on manufacturers outside the EU and ensure an open and free internet with net neutrality. Protection and governance in the digital space are important, which is why the GDPR and the AI Act should also be implemented.
  • According to its election manifesto, DIE LINKE wants to "liberate the internet from the corporations" and support digital service providers for the common good, such as the fairbnb concept. The party wants to reduce the energy consumption of digital applications, increase the longevity and reparability of devices, use ecologically safer raw materials and strengthen the Supply Chain Act. Digitalization should help solve social problems and contribute to a digital society.
  • The FDP intends to use European research funds specifically for research into data protection technologies and infrastructures. In addition, the digital single market is to be expanded and national barriers dismantled. There should also be common security standards for digital infrastructures. Finally, the Liberals want to create a European mobile communications area and are calling for the EU Roaming Regulation to be extended to the EU candidate countries.

Germany has invested considerable financial resources in its communications infrastructure in recent years. Nevertheless, the country is still lagging. Network coverage and speeds are significantly worse than in Sweden and Denmark, for example.

The DESI country report draws a corresponding balance for Germany: "There are still huge deficits in the coverage with fiber optics to the end customer, which at 19% is still far from the EU average of 56% and the goal of the Digital Decade to achieve nationwide coverage with gigabit networks by 2030."

While the German mobile network is extensive and reliable, the introduction of 5G is proving challenging due to regulatory hurdles and allocation problems.

In addition to bridging the digital divide in providing urban and rural areas with very high capacity fixed networks (VHCN), the main challenge for Germany is the timely expansion of fiber optic networks.

Germany recognizes the need to further strengthen its digital infrastructure to remain globally competitive. As set out in the Digital Strategy and the Gigabit Strategy, the German government is committed to the nationwide expansion of both fiber optic and mobile networks to achieve the goals of the Digital Decade by 2030. Achieving this goal requires significant financial expenditure and targeted investments in very high-capacity networks. Additionally, simpler regulatory measures must be implemented, such as removing bureaucratic obstacles and drastically accelerating fiber optic expansion projects. These steps are crucial to ensure that Germany is not left behind on the data highway in the future.

(vat)