BONN (dpa-AFX) - In an effort to finally phase out the relatively slow internet provided over telephone lines—known as DSL or VDSL—Germany's Federal Network Agency is ramping up pressure on Deutsche Telekom. The regulatory authority has presented a concept paper that proposes a local DSL shutdown mandate for the Magenta Group. The aim is to encourage greater use of fiber optic cables, which offer more stable and faster internet than the thin copper telephone wires. This, in turn, would reward investments in this forward-looking fiber optic technology.

The plan involves local DSL shutdowns that, over time, are intended to lead to a nationwide farewell to the aging technology. The first DSL shutdowns in certain regions could take place as early as 2030.

Fiber Investments Yet to Pay Off

Although billions are being invested in expanding Germany's fiber optic network, actual usage by consumers remains relatively low. This poses a problem for investors, who are making less money from their high-speed internet than expected. Apparently, many people are still satisfied with their old DSL contracts. According to a market study by industry association VATM, at the turn of the year, 23 million households and businesses in Germany still had DSL/VDSL internet—700,000 fewer than the previous year. The decline in previous years was similarly modest.

At the same time, the number of fiber optic cables laid in streets or directly to homes rose much more sharply. In 2025, according to the VATM study, the figure increased by 3.7 to 24.8 million households. Roughly half of these connections come from Telekom, with the other half provided by competitors such as Deutsche Glasfaser.

Telekom Wants to Decide DSL Shutdowns Itself

Given its significant investments in fiber, Telekom is naturally interested in seeing more customers switch from DSL to fiber. However, the Bonn-based company does not want to alienate its longstanding customers. It is questionable whether frustrated customers, whose DSL service is cut off by Telekom, would sign a fiber contract with the same provider. It is quite possible they would switch to the competition. Telekom wants to retain the right to decide when and where to discontinue DSL service in a particular area.

Concept Paper Contains Bitter Pills for Both Sides

The regulatory concept is a recommendation to the Federal Ministry for Digital Affairs to draft corresponding legislation. According to the paper, a "migration process" from copper to fiber can be initiated in areas where at least 80 percent of households and businesses have fiber connections directly to their premises—referred to as "Fiber to the Home" (FTTH) and "Homes connected." Currently, the nationwide rate for this stands at just 21 percent, according to the Federal Network Agency, though in some municipalities the figure is significantly higher.

The concept paper, however, contains bitter pills not just for Deutsche Telekom but also for its competitors. One prerequisite for initiating DSL shutdowns is that the fiber networks of Telekom's competitors must be accessible to everyone ("Open Access").

Up to now, Telekom's competitors have not been required to do this, but in the future, they would be. This means they would have to allow the former state monopoly access to their local fiber networks before the DSL shutdown process could begin. While cooperation among various internet providers is common, it is currently voluntary and not enforced by government pressure.

Should the Network Agency's proposals result in legislation, it would still be some time before DSL is actually switched off in the first regions. The paper outlines extensive deadlines: users must be notified three years before the actual shutdown, and no new DSL contracts may be sold in the area two years before the local DSL phase-out. So, if a law is passed in 2027, the first local DSL shutdowns in Germany could occur in 2030.

"Switching to fiber is a future-oriented internet upgrade for Germany," said Network Agency chief Klaus Müller. Consumers should be informed early and thoroughly about every step of the transition. "They should also be able to choose between different providers and fair prices in the fiber world."/wdw/DP/jha