The lack of broadband access remains a problem for German businesses. Two recent studies by KfW show that Germany is still only average when it comes to fast internet.
German companies are keen to have access to large internet bandwidths. The German Institute for Urban Affairs has, on behalf of the KfW Banking Group, Companies were asked about the most important location factors. They were also asked to rate their satisfaction with the current state of these factors in Germany. When it comes to location connectivity, the availability of wired broadband infrastructure still ranks above mobile communications as the most important factor. Urban transport links follow only after that.
When it comes to these most important factors, Germany as a business location receives mixed ratings from respondents: Broadband internet is rated with a school grade of 3.1, the mobile network with 2.7 and transport connections with 2.4.
Insufficient broadband access as a location disadvantage
The moderate results are supported by another study by the KfW's own institute KfW Research: Among the 35 OECD countries, this study ranks Germany third in terms of competitiveness. However, in terms of average internet bandwidth, Germany ranks a distant 19th. The situation is particularly dire in rural areas: Only 29.9% of rural households have access to more than 50 Mbps.
The study states the following about the effects of poor broadband coverage:
"Low bandwidth can already have a significant negative impact on businesses. For municipalities, inadequate broadband access becomes a locational disadvantage: businesses move away or don't settle there at all."
Accordingly, the study authors recommend:
“All regions and political levels should therefore continue to strive for rapid expansion of the broadband network.”
Munich is already well on its way here: Stadtwerke München and M-net have been working on a nationwide expansion of the fiber optic network since 2010. By 2021, 70 percent of all Munich households are expected to have access. In the long term, Stadtwerke München and its subsidiary aim to completely connect the city with fiber optics.
