Deutsche Telekom Registers 10 Million Potential Fiber Customers

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Over ten million households already have access to their own fiber-optic network, according to Deutsche Telekom. However, far fewer are connected. Providers in other EU countries are already canceling DSL contracts to lure potential fiber-optic customers to their broadband happiness.

The majority of Germans still surf and stream via copper-based DSL connections. However, according to plans by the German government in line with those of the EU, all households and businesses should have access to the fast fiber-optic network by 2030.

Deutsche Telekom has now announced a first major milestone on this path. According to this, by the end of 2024, 10.1 million German households already had access to their own fiber-optic network, which is 2.2 million more than in 2023, as reported by ChannelPartner. “We’re rolling out fiber-optic as fast as we can,” quotes the trade magazine Telekom CEO Tim Höttges.

Most connections remain idle

The opportunity to connect to the Telekom’s fiber optic network and actually use it are still far apart. This is because the numbers cited by Telekom refer to so-called “Homes Passed,” meaning the cables buried underground that are still waiting to find their way into many homes or apartments.

When it comes to the stages of fiber optic network connections, it is important to distinguish between:

• FTTN/C/S means that the cables reach the neighborhood, the curb, or the street.
• FTTdp stands for Fibre to the distribution point, meaning up to the cable post or cable shaft on the street.
• FTTB means that the fiber optic cables reach the basement or the building.
• FTTH stands for Fibre to the Home and means the fiber optic connection reaches the living spaces.
• FTTL means Fibre to the Loop or up to the respective subscriber.
• FTTD stands for Fibre to the Desk, meaning up to the office workspace.

The number of activated Fibre-to-the-Home or FTTH connections of Deutsche Telekom stands at 1.5 million fiber optic users, which is only 15 percent. According to Höttges, this should rise to “significantly over 20 percent.”

Price is often the sticking point

New customers are the hope, as many existing ones still decline fiber optic offers. The number of new sign-ups has increased significantly each quarter. In the fourth quarter of 2023, 88,000 new customers were added, and a year later, this number rose to 134,000.

As ChannelPartner reports, Deutsche Glasfaser, a competitor to Telekom, has expanded its reach in Germany from around 400,000 to 2.4 million households and has already connected 40 percent of them. The main reason many customers hesitate to use fiber optic services, despite the promise of fast and stable internet connections, is the price. Vodafone’s list price for cable TV including gigabit download per second is 45 Euro per month before any potential discounts, significantly cheaper than the 70 Euro Telekom charges for its gigabit FTTH tariff. However, the company does not intend to give anything away for free, as CFO Christian P. Illek states. The prices are attractive and sometimes considerably lower than those in the USA.

“According to the plans of the German government, in line with those of the EU, all households and businesses should have access to the fast fiber optic network by 2030.”

No EU Mandate in Sight

Operating copper and fiber-optic cables in parallel is currently uneconomical. Since fiber-optic technology is superior, some countries like Denmark, Sweden, and France have already made significant progress in shutting down copper networks. Orange S.A., the largest telecommunications company in France, has even accelerated the shutdown to 2030.

Germany, however, has no concrete shutdown plans yet. Marcel de Groot, CEO of Vodafone Germany, has stated that a clear roadmap for the end of copper cables is needed to achieve the federal government’s gigabit goals.

The EU Council advocates for a gradual shutdown of copper networks to consider the unique characteristics of member states, competition, and consumer welfare. This means that a Europe-wide shutdown of copper networks by 2030 is unlikely.

The German Broadband Communication Association (BREKO) has commented: “We welcome the fact that the Council has clearly rejected the unrealistic demand for a uniform EU-wide final shutdown date for copper networks and emphasizes the importance of a consumer- and competition-friendly transition from copper to fiber optics.”

For providers, DSL remains the core business, as shown by the nearly constant number of 24 million households over the past decade. Deutsche Telekom estimates it will take another five to seven years before they have more fiber-to-the-home (FTTH) customers than DSL customers. Financial incentives might be necessary to encourage this switch, in addition to the pressure to shut down copper networks. Some local operators are already leading the way with significantly lower prices.

Source image: Adobe Stock / Viks_jin