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Real Estate Sector Pushes Fibre Optic Expansion in Multi-Party Buildings

The real estate industry has commissioned Deutsche Telekom AG to expand fibre optic connections for seven million residential units, aiming to improve digital infrastructure in multi-family homes.

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Real Estate Sector Pushes Fibre Optic Expansion in Multi-Party Buildings. Illustrative image generated using artificial intelligence (AI). The image does not depict a real property, person or event and is not a documentary photograph. Labelled in accordance with Article 50(4) of the EU AI Act.

The real estate sector is intensifying its efforts to provide fibre optic technology across multi-party buildings. Housing companies, property management firms, and project developers have commissioned Deutsche Telekom AG to connect a total of seven million residential units. This cooperation aims to strengthen the digital infrastructure in a segment of the German housing stock where connectivity is considered more complex than for single-family and two-family homes.

Expansion in multi-family homes requires close coordination between owners, management, residents, network planning, and construction companies. Industry estimates indicated that by the end of 2025, a significant proportion of flats in German multi-family homes would still lack fibre optic connections. Telekom is therefore working with the real estate industry on solutions to make the expansion of large portfolios more efficient and predictable.

Jean-Pascal Roux, Head of Fibre Reach at Telekom, emphasised that the commissioning of seven million flats underscores the active commitment of the real estate industry to fibre optic expansion. He highlighted that the implementation of these orders into usable connections is now a priority, and that access to digital infrastructure for residents of multi-family homes and social housing should not depend on the type of housing.

Open Network and Standardisation Promote Expansion

A key argument for cooperating with Telekom is the long-term independence for properties. Telekom's fibre optic network, similar to its DSL network, is also available to other telecommunications providers. Currently, around 45 national and regional providers use this network as wholesale partners for their own products and tariffs. This ensures freedom of choice for residents and does not tie them to a single provider. For owners, housing companies, project developers, and managers, such an open network prevents a permanent provider monopoly in the building and ensures flexibility in property supply.

Mr Roux underlined that upgrading to fibre optics represents a modernisation of a building's technical lifeline, but that provider choice must be maintained. With each connected unit, not only does Telekom's network grow, but also the addressable market for other telecommunications providers, benefiting competition and consumers. To facilitate expansion, especially for large portfolios, Telekom has developed framework agreements and model regulations with real estate industry associations. These provide a legally secure framework for planning, construction, and operation of the infrastructure, simplify coordination processes, and accelerate expansion projects.

Additionally, Telekom collaborates nationwide in over 50 partnerships with regional network operators, municipal utilities, and other infrastructure partners. This bundles strengths: regional partners can build the local infrastructure, while Telekom enables open network operation. This allows not only the regional partner and Telekom, but also other providers, to offer their services via the fibre optic infrastructure.

Focus on In-Home Connection

Telekom will increase its investments in fibre optic expansion by another EUR 800 million over the next three years, in addition to the billions already planned. The focus is increasingly shifting towards truly usable fibre optic connections right into the home, not merely the connection of streets and buildings. Mr Roux remarked that the seven million commissioned flats do not serve as a reason to pause, but rather highlight the responsibility and potential that now lies before them. The goal is to realise actual connections from orders, together with the real estate industry, to ensure digital infrastructure and free provider choice for everyone, regardless of their place of residence.

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