Germany fiber optic subsidy demand projected at up to 20 billion euros

A new market study regarding gigabit funding for 2026 indicates that the future demand for fiber optic subsidies in Germany is estimated to be between 15 and 20 billion euros.

According to the analysis, the proportion of addresses requiring subsidies has risen for the second consecutive year to 18 percent. This increase is driven by private network operators withdrawing from middle-tier locations due to capital shortages and lower pre-marketing rates. While the number of addresses needing support is growing, the average cost per connection has decreased by 18 percent to 7,800 euros, down from 9,500 euros the previous year.

The study notes that the limit for commercially viable expansion is economic rather than technical, following capital costs and marketing potential. The expansion of privately funded fiber optics is losing reach, with the share of addresses covered by private operators expected to drop from 84 percent in 2025 to 82 percent in 2026.