Gigabit Age
12.06.2024

Opportunities and challenges in the gigabit age

On the occasion of the Federal Network Agency’s Telecommunications 2023 annual report, we shed light on the many opportunities and challenges that the gigabit age brings for internet service providers and telecommunications companies. Broadband expansion requires strategic measures in order to be successful. In focus: How can internet service providers (ISPs) and telecoms companies thrive in the age of gigabit internet?

 

Investing in fibre optic technology: The foundation of the gigabit age

Investing in fibre is crucial for ISPs and telecommunications companies to meet the growing demand for high-speed internet. In 2023, investments in fixed assets in the telecommunications market reached a total of 13.2 billion euros, with a focus on the expansion of fibre optic and 5G networks. While Deutsche Telekom AG contributed to only 36% of total investments in new broadband network infrastructures in previous years,this share was 88% in 2023 at EUR 5.6 billion. Fibre optic networks provide the necessary bandwidth and reliability to meet customer requirements and maximise customer connectivity. Find out more in our blog post on the topic of fibre optic supply in Germany – status quo and demand survey. Measures in this area include the expansion and modernisation of existing fibre optic networks, the expansion of FTTH (fibre to the home) infrastructures, the promotion of research and development of new fibre optic technologies and cooperation with government authorities to create a conducive investment environment.

 

Partnerships and co-operation: Stronger together in broadband expansion

Cooperation with government authorities, local communities and other companies can accelerate broadband expansion and overcome hurdles in approval procedures. For example, Deutsche Telekom AG has established partnerships and cooperations, including Glasfaser NordWest GmbH & Co. KG and GlasfaserPlus GmbH, which were founded in 2020. In 2021, Deutsche Telekom acquired the Australian infrastructure investor IFM Investors and the IFM Global Infrastructure Fund as partners for GlasfaserPlus GmbH. Such strategic partnerships enable companies to create synergies and drive innovation. Measures to promote such partnerships include incentivising investment, simplifying approval procedures, providing financial support for infrastructure projects and promoting public-private partnerships.

 

Customer focus and service quality: The key to customer satisfaction

To ensure long-term customer satisfaction, excellent customer orientation and service quality are crucial. Internet service providers and telecoms companies should offer transparent tariff structures, ensure fast problem resolution and maintain clear communication with their customers. Investments to ensure customer care were also made, but only accounted for around five per cent of total investments. Measures such as training staff in dealing with customers, implementing efficient customer support systems (e. g. through self-service solutions for independent troubleshooting), regularly reviewing and optimising tariff structures and service offerings and continuously improving network quality and reliability are crucial.

Optimise customer service whitepaper is being read on a tablet.
Knowhow

Gigabit strategy

Find out everything you need to know about the German gigabit strategy and its framework conditions in our Knowhow (DE).
Optimise customer service whitepaper is being read on a tablet.

Investing in cyber security: Protection against digital threats

With the increasing use of high-speed Internet, the threat of cyber attacks is also increasing. Internet service providers and telecoms companies should therefore invest in advanced cybersecurity solutions to protect their networks and their customers’ data. Although no specific details on investment in cyber security were mentioned in the annual report, it is an essential aspect of maintaining existing broadband network infrastructures, which accounted for around seven per cent of total investment. Measures to strengthen cyber security include implementing firewalls and intrusion detection systems, regularly reviewing and updating security policies and procedures, training employees to deal with security threats and liaising with external security experts and authorities.

 

Continuous innovation and further development: Looking to the future

The telecoms industry is constantly changing, which is why continuous innovation and development are essential. Internet service providers and telecoms companies should actively invest in research and development to drive new technologies and services and maintain their competitiveness. This is reflected in the increasing number of end customers supplied with FTTH/FTTB, which rose to 17.9 million at the end of 2023. This underlines the ongoing expansion of the fibre optic infrastructure. Measures such as the development of new internet protocols, the improvement of network speed or the introduction of innovative communication services are crucial. In addition, companies should conduct research and development in this area, promote innovation through investment and partnerships and regularly review and adapt their business strategies.

 

Conclusion: Key points for success in the gigabit age

The gigabit era offers numerous opportunities for internet service providers and telecoms companies, but also comes with challenges. By investing in fibre optic technology, strategic partnerships, excellent customer service, cyber security and continuous innovation, companies can successfully navigate the Gigabit Internet era and strengthen their competitiveness.

 

Sources: Annual Report Telecommunications Federal Network Agency 2023, BREKO Market Analysis 2023

 

Author Image

As an expert in social media, Johanna is always in tune with the times and has an intuitive feel for trends and developments in customer service.

Discover more

Knowhow

CUSTOMER SERVICE 4.0

Lit lightbulb on blue background

WHITEPAPER

Reasons why customers do not reach the contract speed

Whitepaper magazine entitled Reasons why customers do not reach contract speed

Online Talk

Optimise WiFi – Internet is not just WiFi

Laptop with Online Talk optimise WiFi - Internet is not just WiFi.

Live Demo

Find out more about the potential of our solution!

Florian Franzl

Related articles

card_image

The future of customer service

25.07.2024

Virtual assistants, AI, target groups - the customer service landscape is...

read more
card_image

The limits of chatbots in technical customer support

28.06.2024

Chatbots have become increasingly popular in recent years and offer an...

read more
card_image

Artificial intelligence in the telco industry

23.05.2024

In a world characterised by constant change, the telco industry has...

read more