Broadband

Germany Shifts to Fibre: Vodafone Leads, 1&1 Penalized

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Germany is actively transitioning from Digital Subscriber Line (DSL) to fibre optic broadband, influenced by both market demands and regulatory needs for transparency. Vodafone Germany has launched competitive fibre plans starting October 26 to encourage this shift. This move aligns with the Digital Ministry’s objectives and counters challenges like customer churn due to new regulations allowing tenants more freedom in choosing broadband providers.

To attract over 10 million eligible German households, Vodafone offers increased speeds at unchanged prices through their GigaZuhause (GigaHome) plans. These include new download speeds of 150Mbps, 300Mbps, and 600Mbps, and significantly improved upload speeds. Moreover, the top-tier GigaZuhause 1000 plan’s price is cut by €10, and customers can downgrade without penalties after six months.

Simultaneously, regulatory oversight is tightening. The Koblenz Regional Court recently found ISP 1&1 guilty of misleading advertising. The court ruled 1&1’s use of terms like “fiber optic DSL” deceptive, as their FTTC technology still employs copper for the final home connection, limiting performance compared to FTTH. The verdict mandates clear communication about FTTC’s capabilities, influencing advertisement standards across the EU.

The developments point to a dual approach needed from providers: creating irresistible offers to transition consumers from DSL while investing in genuine FTTH infrastructure. Failure to accurately present network capabilities could lead to regulatory issues and penalties.

For industry insiders, the evolving German market highlights the need for strategies that combine attractive customer offers with authentic infrastructure investments. As 1&1 Versatel’s Vice President Zvezdana Lazic-Latincic discussed at the Connected Germany event, these strategies are crucial for the accelerated network deployment necessary to meet consumer demand and adhere to regulatory expectations.

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