Government cuts one billion euros in gigabit funding for 2024

After the Federal Cabinet approved the government's draft budget for 2025 on July 17, the Federal Ministry of Digital and Transport (BMDV) has been forced to cut the gigabit funding pot for 2024 by one billion euros. It was only in May of this year that it published a new call for gigabit funding 2.0, in which there was talk of EUR 3 billion in funding for nationwide expansion. This amount will now be reduced by a third

Stefan Schnorr (FDP), State Secretary in the BDMV, explains in a letter to the federal states, which is available to heise online: "It is good news that we will continue to provide strong support for fiber optic expansion in 2025 despite the tight budget situation." In addition to around 900 million euros, the federal government is contributing one billion euros to the budget for "new approvals of broadband expansion projects as part of gigabit funding", in particular through amendment approvals and the program of the development bank Kreditanstalt für Wiederaufbau (KfW).

However, it was necessary to "adjust" the funds available for new approvals for 2024 to around 2 billion euros, Schnorr continues. As a result, "the country ceilings for this year" also had to be adjusted downwards. At least this would ensure that broadband funding could be "continued on an ongoing basis". According to Schnorr, the funds should only provide support "where the pent-up demand is greatest". The self-economic expansion by network operators continues to make great progress. They will continue to "invest heavily in the future so that the expansion of fiber optics in Germany continues unhindered".

Bavaria: "A bitter blow for the digital future"

Bavaria's Minister of Finance and Home Affairs, Albert Füracker (CSU), saw the news as a "bitter blow" for Germany's digital future and municipalities in rural areas. The federal government is drastically cutting funding for fiber optic expansion "completely out of the blue". This is "clear proof of the failed prioritization and ignorant behavior" of the traffic light coalition. Instead of 460 million euros, only 295 million euros would be available for Bavaria's municipalities alone in 2024.

Sven Knapp from the German Broadband Association (Breko) considers the funding cut to be understandable in view of the state's shortage of funds. It is not at the expense of fiber optic expansion, "on the contrary". This is because there is now likely to be less funding for areas "in which a significantly faster, self-sufficient expansion would be possible". It will now be "all the more important to use the available funding in a targeted manner" in regions "where internet coverage is particularly poor" and cannot be expanded without money from the state. In any case, gigabit funding should be designed in such a way that "hopeless applications for funding are not submitted in the first place". This would avoid "unnecessary expense for local authorities and companies".

The Breko and the telco association VATM already pointed out when the original funding amount was announced: The BMDV is continuing to try to invest unnecessary billions in a bureaucratic funding regime, which is paralyzing expansion. At least 100 million euros will continue to be available for the "Gap Closure Pilot Program" according to the revised call. It is aimed at small areas that are not being developed as part of a planned, ongoing or completed self-service gigabit expansion. In May, however, industry associations again considered the funding earmarked for this to be too low.

(usz)