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.
