Fibre-optic expansion 2025
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Fibre-optic expansion 2025 – opportunities and risks for public utilities & competitors

23.09.2025

A market in transition: fiber optics reach half of households

Fibre-optic expansion in Germany reached a decisive turning point in 2025. According to the latest BREKO market analysis, 52.8% of households are now connected to fiber optics – this corresponds to around 24.3 million so-called Homes Passed. But with fiber optic connection The picture itself is different: Only 27.3% of households and companies have actually activated their fiber optic connection.

The so-called Take-up rate is at 27%, a slight increase over the previous year, but still a long way from the targets of many network operators. In figures, this means that of the 24.3 million units accessed, only 6.6 million customers actively use fiber optics.

The core strategic question therefore remains for the management and technical management of municipal utilities and competitors: How can investments in fibre-optic expansion be translated into market shares and customer acquisition in the long term?

Homes Passed, Homes Connected, Homes Activated

Competitors and public utilities as drivers of expansion

It is particularly noticeable that the majority of the fibre-optic expansion does not come from established incumbents such as Deutsche Telekom. Competitors and public utilities had completed around 70% of active fiber optic connections by mid-2025.

This development shows: Public utilities and regional providers have become the driving force behind the expansion of the fibre-optic network. They are expanding more comprehensively, responding more quickly to regional requirements and making much greater use of their own economic potential.

A look at the federal states illustrates the differences:

  • With an expansion rate of 92.7%, Schleswig-Holstein is in the lead.
  • Hamburg and Bremen follow closely behind.
  • Lower Saxony is recording the strongest growth among the area countries.

For public utilities, this means: Proximity to customers and local roots are decisive competitive advantages. Those who consistently push ahead with fibre-optic expansion can establish themselves as an infrastructure provider in the long term – far beyond the energy sector.

You can also find further background information in our article on fiber optic supply in Germany.

Fiber optic connections – Competitors vs. Deutsche Telekom

Opportunities in the fiber optic market 2025

The latest figures provide clear opportunities for network operators and public utilities:

  • Securing market shares: Competitors are ahead in terms of expansion and activation of connections. Anyone who invests now can secure long-term market shares – especially in regions where incumbents are still reluctant.
  • Use collaborations: 9 out of 10 network operators have already concluded collaborations. The main reasons are better network utilization (90%) and the avoidance of double expansion (69%). Joint infrastructure projects reduce costs and increase the speed of expansion.
  • Positioning as a provider of the future: Public utilities have the opportunity to redefine their role as suppliers – from traditional energy providers to digital infrastructure providers.

For management, this means that anyone who enters into cooperation early on can mitigate investment risks, realize efficiency gains and at the same time strengthen their own brand in competition.

Percentage of homes passed, homes conntected, homes activated (out of total households)

Risks and challenges for network operators

Despite the positive development, the fiber optic market is not without stumbling blocks.

1. High expansion costs
A fiber optic connection is expensive:

  • A house connection (Hausstich) costs between 700 and 1,500€ per residential unit on average.
  • The expansion of network level 4 (in-house cabling) is between 300 and 1,050€.

In the apartment building sector in particular, the lack of willingness of many owners to cooperate represents a significant risk – 71% of network operators see this as the biggest hurdle.

2. Low take-up rate
Usage remains low despite increasing availability. Many households are delaying the switch and are sticking with VDSL or cable connections for the time being. For network operators, this means that networks are built, but not immediately used.

3. Political uncertainties
The Telecommunications Act (TKG) is currently being used in the area Network level 4 discussed. Possible changes could bring both opportunities (e.g. simplification of expansion) and risks (e.g. regulated co-use fees).

It is therefore essential for CIOs and technical leaders to to calculate cost structures transparently and Take political developments into account at an early stage.

FIber optic expansion rate | Fiber optic connection rate

Conclusion: Expansion alone is not enough – customer acquisition is decisive

Fibre-optic expansion in Germany is well on track in 2025. But the figures also show: The competition is not decided in civil engineering, but in customer acquisition.

  • Expansion creates the technical basis.
  • However, only those network operators who actively migrate customers to fiber optics will be successful.
  • Digital customer experience strategies, self-service solutions, and simple processes can make the difference here.

Public utilities and competitors who are early in Customer satisfaction and digital services investing will strengthen their market position.

Read more about this in our articles Fiber-Optic Expansion in Germany 2024 and Efficient Customer Service in the Digital Age.

How self-service makes fiber optic connectivity a success

Digital companions are needed to ensure that fibre-optic expansion is a success not only in civil engineering but also among customers. Self-service solutions enable:

  • easy setup of the connection without a technician appointment,
  • quick help in case of malfunctions,
  • transparent customer communication,
  • and a smooth transition from old connections to fiber optic.

For management and technical management, this means that anyone who combines fibre-optic expansion with a well-thought-out service concept increases Take-up rate and ensures the profitability of the investment.

Self-service solutions such as MyProvider show how customer satisfaction and efficiency can go hand in hand — and make fiber optic connections a real competitive advantage.

Photo of Johanna Kugler
Johanna Kugler

Content Marketing Manager

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