The 28th FRK Broadband Congress opened in Leipzig, featuring discussions on fibre market realities and the need for a stronger customer focus. Ralf Berger, the new Chairman of the German cable operator association FRK, welcomed delegates, thanking his predecessor Heinz-Peter Labonte. He highlighted the industry's evolution from DTT to fibre networks, emphasizing that while technologies change, fundamental issues remain.
Berger criticized growing political interference in the broadband sector, stating, “More than ever, politics is getting involved where it shouldn’t.” He stressed that the guiding principle must always be the benefit for the customer. Sebastian Krems, Chairman of Latus Consulting, presented a keynote speech titled “From homes passed to homes connected – the new currency in the fibre market.” His analysis revealed that rollout costs are higher than anticipated, business plans are overstretched, and revenues remain low. The average take-up rate stagnates around 25 percent, and Krems stated bluntly, “Business plans are not flying.” This, he warned, makes securing investor capital increasingly difficult.
Krems argued that opening networks through open access is essential. He questioned whether the industry truly understands customer needs, noting that reliability is the top purchase criterion (40% of potential customers), followed by price and download speed. He remarked, “But that is not what broadband providers usually advertise with.” Krems advised evaluating customer complaints on social media to identify unmet promises. He concluded, “We can do better,” advocating for operational excellence in IT, marketing, and sales.
Dr Henrik Bremer, a lawyer at Wirtschaftsrat Recht, offered a strategic outlook. He supported open access, especially with market consolidation among smaller fibre operators. He acknowledged the resilience of cable networks, questioning, “Who really needs one gigabit?” due to the lack of pressure from tenants and home buyers in the current housing market. Bremer also criticized political and regulatory interventions, emphasizing, “Investors hate regulation and price caps.” He highlighted new revenue opportunities at the in-house network level (Netzebene 4), such as connectivity for smart meters.
The congress, running from September 10-11, included sessions on market consolidation, technological innovation, wholesale strategies, and legal frameworks.