• Latency: Uninterrupted data transmission (low latency) is also essential for many applications, for example for extensive use of the cloud and interconnected commercial
software. Studies on e-commerce show that even a delay of only one second in page
loading leads to around 10% less revenue, and customer satisfaction drops by 16%.8
Then again, delays in the millisecond range, currently still the rule, render certain
process applications impossible.
In order to accomplish this triple task we must construct a gigabit optical fibre
network in Germany by 2025. Classic telephone lines or metal TV coaxial cable
can lead to signal interference if more than one signal is being transmitted at
once. Optical transmission of data over glass fibre cables is largely immune to
such problems. In addition, glass fibre infrastructure exhibits significantly less
energy consumption for transmission to end customers than high-performance
copper wire networks. 9 With the growing importance of information and communications technology, energy and resource efficiency (Green IT) should be
given more consideration. This also applies to the telecommunication network.
Broadband connections with speeds in the range of several gigabits per second
symmetrically are essential, both in download and upload in order to ensure
reliable real-time transmission capabilities and high-quality Internet service.
To achieve this, the present broadband strategy in Germany, largely aimed at
providing asymmetric connections for private customers, must already be adjusted now to include optical fibre technology extending beyond the year 2018.
A nationwide Fibre to the Home (FTTH) network expansion in Germany will
require investments of up to €100 billion.10 Around three-fourths of the popula
tion of the Federal Republic of Germany live in metropolitan areas11 , where the
German broadband market is very competitive and where we can expect the
market to drive an expansion of gigabit networks. Even in rural areas there are
certainly investment activities that take advantage of cost-savings possibilities
and cross-sectoral synergies. In some regions, however, networks are not being
expanded because it is not economical.
In order to establish a powerful and competitive digital infrastructure, the following measures must be implemented:
•A
n investment fund for the future for gigabit networks in rural areas. A fund volume
of around €10 billion is expected to lead to additional investments in the period to 2025.
Financing sources for this fund could include the proceeds from the next spectrum
auction (the UMTS frequencies will expire in 2020) as well as funds from the Digital
Dividend II which have not yet been utilised for broadband deployment. Beyond that,
new financial instruments will be necessary.
8 Arthur D. Little: The future of the Internet, ill. 9 and the references there.
9 Also see MICUS: “Nachhaltiger NGA-Netzausbau als Chance für Nordrhein-Westfalen”, Studie im Auftrag der NRW.BANK (Sustainable
NGA network rollout provides opportunities for North-Rhine Westphalia), May 2015.
10 T
üV Rheinland Consulting, Scenarios and costs of cost-efficient nationwide coverage of areas that do not yet have at least 50 Mbps,
Dec. 2013; and WIK (Scientific Institute for Communications Services): Implications of a nationwide expansion of optical fibre networks
and the need for subsidies, WIK Discussion papers No. 359, October 2011.
11 I .e. central or very central location, regardless of the type of settlement as defined in http://www.bbsr.bund.de/BBSR/DE/Raumbe
obachtung/Raumabgrenzungen/Raumtypen2010_vbg/Raumtypen2010_alt.html?nn=443270 (a federal publication on population).