.webp "Network expansion is no longer the bottleneck – why the take-up rate determines the success of fiber-optic networks")
At a glance
Fiber optic expansion in Germany is reaching new heights. More connections are becoming available, yet they are not being used immediately. The economic success of a fiber optic network therefore increasingly depends on the take-up rate. There are several process steps between an available connection and active usage that network operators can manage strategically.
Fiber optic expansion reaches a new level
The German fiber optic market has made enormous progress in recent years. Millions of households and businesses now have the technical capability to use a fiber optic connection. According to current market figures, around 24.8 million households and businesses will have access to fiber optics by the end of 2025. This corresponds to an expansion rate of over 52 percent (BREKO Market Analysis 2025). The take-up rate – the share of connected households that actually sign up for service – is only about 27 percent (BREKO Market Analysis 2025), which is the lowest figure in all of Western Europe.
This trend shows that expansion remains a key prerequisite for digitalization. At the same time, the economic reality for many network operators is changing. There is often a significant gap between an available connection and an actually active customer. While the number of so-called homes passed is growing continuously, the number of actually connected households (homes connected) is developing much more slowly. This is precisely where the bottleneck is shifting.
Today, the question is less and less: "How do we build more fiber optic connections?"
And much more: "How do we turn an available connection into a permanently used one?"
Infrastructure alone does not create value
Every newly built fiber optic connection is initially an investment. It only generates an economic return once customers order, activate, and consistently use the connection. For network operators, this means that investments must be refinanced.
Network utilization must increase. Customers need to be retained for the long term. Processes must run efficiently. As expansion areas grow, the economic utilization of the network becomes increasingly central. A connection that is available but not being used improves neither network utilization nor revenue.
What does the take-up rate mean?
The take-up rate describes the proportion of available fiber-optic connections that are actually being used by customers. Simply put:
- Homes Passed: The connection is technically available.
- Homes Connected: The connection has been activated.
- Take-up rate: How many available connections are actually being used.
This metric is becoming increasingly important. While network expansion represents technical progress, the take-up rate demonstrates the economic success of a fiber-optic network. This is why not only network operators, but also investors, financiers, and market analysts are increasingly focusing on the growth of activated connections.
The bottleneck is shifting
In recent years, the industry has focused primarily on building new networks. Today, however, many challenges only arise after the infrastructure is completed.
Typical questions include, for example:
- Do interested parties even know that fiber is available?
- Do they understand the process leading up to activation?
- Can questions be answered quickly?
- How easy is the ordering process?
- How long does activation take?
- Does the connection work reliably from the first day of use?
Each of these questions ultimately influences the take-up rate. Network expansion is therefore merely the starting point of a much longer customer journey.
There are several critical phases between availability and actual usage
Many companies view the activation of a connection as a single task. In reality, it consists of several sequential phases.
1. Information
Interested parties need guidance.
- Is fiber optic available?
- What are the benefits?
- How does the switch work?
Unclear information leads to uncertainty and delays as early as this initial phase.
2. Decision
Even when there is genuine interest, questions often remain.
- When will the installation take place?
- What hardware is required?
- Do I need to cancel my existing contract?
The more complex a process is perceived to be, the higher the risk of abandonment.
3. Activation
The most time-consuming part often begins after the connection is switched on. Routers need to be set up. Wi-Fi needs to be adjusted. Technical questions arise. It is precisely during this phase that support volume often increases significantly.
4. Usage
Even after successful activation, it remains to be seen whether customers perceive the connection as a lasting improvement. Wi-Fi issues, unrealistic expectations, or uncertainty during setup often lead to further support inquiries. Therefore, the take-up rate does not end with a successful connection; it continues to evolve throughout the entire initial usage phase.
Key metric in focus: Homes Passed vs. Homes Connected
Fiber optic network expansion is traditionally evaluated based on the number of homes passed. However, this metric alone is no longer sufficient for economic development. The ratio between available connections, activated connections, and the resulting take-up rate is becoming increasingly critical. The larger this gap, the more economic potential remains untapped.
Why the take-up rate is becoming a management metric
As expansion rates rise, the way fiber optic projects are managed is also changing.
In the future, the decisive questions will no longer be exclusively:
- How many connections have been built?
- How many kilometers of network have been laid?
Instead, consider questions like:
- How many households are actually using the connection?
- How long does activation take?
- Where do process drop-offs occur?
- Which steps generate the most support inquiries?
- How quickly do new connections contribute to the network's refinancing?
This transforms the take-up rate from a simple sales metric into a core management KPI.
Expansion remains important – but it is no longer enough on its own
Fiber optic expansion remains the foundation of digital infrastructure. Without available connections, there can be no usage. However, as network coverage increases, the economic focus is shifting toward the processes between availability and long-term usage. This is precisely where some of the greatest potential lies today. Systematically improving these phases not only increases the take-up rate but also reduces support overhead, shortens activation times, and enhances the customer experience.
Conclusion
The fiber optic market is entering a new phase. While expansion remains a vital prerequisite, it is increasingly less likely to be the sole factor determining a network's economic success. The real challenge begins once the infrastructure is complete. Between availability, the customer's decision, activation, and stable usage lie numerous factors that determine whether a built connection becomes an active customer. These four phases are the focus of the take-up rate model. In the next article in this series, we will take a closer look at the first of these steps and show why the information phase is critical to whether an available fiber connection is actually used later on.
FAQ
What is the take-up rate for fiber optics?
The take-up rate describes the percentage of available fiber optic connections that are actually activated and used by customers. It is considered a key metric for the economic utilization of a fiber optic network.
Why isn't fiber optic expansion enough on its own?
A completed connection only generates economic value once it is ordered, activated, and used consistently. There are several process steps between availability and actual usage that significantly influence the take-up rate.
Which factors influence the take-up rate?
The most important factors include clear information, a transparent ordering process, seamless activation, and a positive initial user experience.
Read more
In the second part of this series, we show why the information phase is often the deciding factor in whether interested parties actually become active fiber optic customers.
Download our whitepaper "Take-up is not created by expansion" and learn which levers network operators can specifically pull throughout the entire take-up journey.
