On a general level connectivity vouchers, which are aimed at potential users of FTTB/H products and vouchers targeted to upgrade in-house infrastructures with fibre can be distinguished.
As our analyses show, the greatest impact can be expected from connectivity vouchers for use on existing and new networks. With a view to a possible notification procedure, such a model could be designed to be compliant with EU state aid law. By contrast, a so-called ‘re-densification voucher’ or a voucher for upgrading building-internal infrastructures would hardly be expected to provide any impetus for the market.
However, there are concerns regarding the efficiency of the use of funding for all the models discussed. In all models and scenarios, the public funds required to acquire an additional customer are well over €1,000, despite the assumption of a relatively low voucher amount of €200, so that the efficiency of the use of funding must be questioned. Furthermore, the argument that demand (and supply) become accustomed to subsidies cannot be completely dismissed, nor can it be fully excluded by design adjustments.
In this context, it is worth considering other approaches that could provide impetus for the German fibre-optic market and, in some cases, appear to be cheaper and quicker to implement.
