Fiber Optic: New round of Gigabit funding 2.0 starts early

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Fiber Optic: New round of Gigabit funding 2.0 starts early


Ahead of the federal elections in February, the Federal Ministry for Digital and Transport (BMDV) surprisingly launched Gigabit Funding 2.0 on Thursday. With the initial announcement, it wants to send “a clear signal for further expansion of future-proof digital infrastructure.” The funding call covers a total budget of 1.2 billion euros. The amount was about the same as could be expected from the draft law for the 2025 budget, which the federal government launched in August. At the time it was said that funding in 2025 would actually amount to around one billion euros. BMDV previously announced that the federal government would have to significantly reduce the state pot for gigabit expansion due to tight budgets.

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BMDV launched a 2024 funding round in early May with a total of 3 billion euros. in the center of The 2025 Initiative is once again calling for infrastructure financingWhich, in addition to standard expansion projects, also includes the so-called Fast Lane process. The latter aims to provide fiber optics to previously unserved and underserved locations as quickly and efficiently as possible. The requirements remain largely unchanged and are based on normal conditions from the previous year. It includes a “point compass” intended to make it easier for municipalities to predict the chances of success of a potential funding application.

The pilot program to bridge the gap, which was started in 2024, will also be continued. It aims to create synergy between private and subsidized projects in the localities and connect households with particularly difficult access at once. Then the excavators do not need to dig a second time. A simplified application process applies. The upper limit is now one million euros per project; Initially it was 500,000 euros. The total budget of the gap-closing program is 40 million euros, which is less than four percent of the total funding pot.

BMDV announced that in 2024, 2 billion euros in federal funds were invested in fiber optic expansion in more than 560 projects. This makes it possible to support more than 440,000 connections and benefit approximately 1,700 communities. These figures made clear the effectiveness of the funding and its importance as a “central building block for building sustainable digital infrastructure”. A total of approximately 4.3 million connections have now been deployed, thanks to gigabit funding from the federal government. However, the priority remains on expanding the network for its own benefit.

“Our goals set out in the gigabit strategy are clear,” Digital Minister Volker Vissing (independent) stressed. The government continues to eye targeted nationwide gigabit coverage by 2030. There has also been a focus on private sector expansion and targeted support measures as a complement. Sectors where private investors have reached their limits will be supported. It aims to create “digital participation for all”.

“Given the significantly reduced funding compared to 2024, the BMDV should have adjusted the criteria for applications,” demands Sven Knapp, capital city office manager of the Federal Association of Broadband Communications (BRECO). The federal government must ensure that “funding processes are only initiated in municipalities that have a realistic chance of being approved”. By 2024, 90 percent more funding than was available had been applied for. There is now a risk that “even more municipalities will submit disappointing applications for funding” in 2025. According to Knapp, the gap-closure program “should be significantly expanded.” In general, the initial call is “subject to considerable uncertainty in view of the provisional budget management, which is expected to continue for several months”. The next federal government should use a portion of the funding for fiber optic vouchers.


(mho)

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