18 Sep. Digitalisation needs competition: Federal Digital Minister Dr Karsten Wildberger at the VATM-Sommerfest
A new study by DIALOG CONSULT and VATM shows: „Ensuring effective market competition calls for a stronger pro-competition regulatory approach.“
Berlin, 18.09.2025. A deep dive into the development of the telecommunications and digital market, the status of infrastructure expansion and the future possibilities of digital participation – that was the theme of the big VATM parliamentary Sommerfest with more than 500 guests in Berlin. Key political decisions regarding Germany’s digitalisation will be made in the coming weeks and months, emphasised Dr Karsten Wildberger, the Federal Minister for Digital Affairs, in his keynote speech at the opening of the Sommerfest. Setting the tone for the evening, he shared his clear ideas on competition, infrastructure expansion and reducing bureaucracy. „Do we really want to turn the battle for homes into a battle for doors as well? We want optical fibre!“, emphasised minister to applause.
On the afternoon before the Sommerfest, the new study by DIALOG CONSULT and VATM was presented to more than 200 guests from politics, industry, science and the media. It analyses the current state of competition in the fixed-line and fibre-optic markets, highlighting regulatory gaps and identifying where decisions are needed to speed up rollout and ensure real choice for businesses and consumers.
Now in its third consecutive year, the study reveals a critical competitive dynamic: alternative providers are continuing to lose significant market share to Telekom, particularly in the business customer sector.
“Our competitors are performing strongly in the market. They have mastered technology, marketing, product innovation and customer service,” emphasises VATM Managing Director, Dr Frederic Ufer. “Nevertheless, they are losing market share and revenue, which shows that competition in the fixed-line and fibre-optic market is at risk of being neglected without effective regulation.”
In his study, Prof. Dr. Peter Winzer, a partner at DIALOG CONSULT and a professor of telecommunications economics at RheinMain University of Applied Sciences, analyses a problematic development:
∙ In the business market, ineffective regulation of telecommunications is hindering competition and slowing the rapid digitalization of the economy and industry. This leads to limited access options, poor service quality, and the abuse of market dominance.
∙ Competitors currently have no access to Telekom’s fibre optic network at low value-added levels (e.g. pure fibre optic subscriber lines), but only at the active bitstream level – a clear competitive disadvantage. In turn, Telekom refuses to take advantage of its competitors‘ numerous open access offers based on bitstream technology, instead demanding access to unconnected fibre optics from them.
∙ In a functioning competitive market, four major nationwide providers should each achieve around a 25% market share on Telekom’s network. However, Telekom is expected to dominate with a share of over 95% by the end of 2024. Even with optimistic forecasts, competitors would only reach a maximum of 25% by 2030.
∙ Telekom already dominates fibre-optic expansion in the homes passed category. Without regulation, this dominance is also likely to extend to actual connections (homes activated) from 2030 as well.
“The commitment of the many smaller providers in the fiber-optic market is highly valuable. Together, they are driving Germany’s digital transformation,” says Dr. Winzer. “But we also need large competitors across the country who can keep up and maintain pressure on the market, so that Telekom can’t use its dominant position to the disadvantage of others.“
The study concludes that effective optical fibre competition can only be created through significantly more competition-oriented regulation. This is a key requirement for ensuring real diversity of supply in the market, boosting demand for fibre-optic connections (take-up rates), and effectively driving the digitalisation of the economy and society.
You can access the study here.
