Original article Total Telecom:
News
Major investments planned by both the private and public sectors could see connectivity flourish
This week, a consortium of 61 German companies have announced the launch of the ‘Made for Germany’ initiative, aimed at streamlining private sector dialogue with government and roadblocks for investment.
According to a shared press release, the initiative aims to create “a key point of contact for the government, working to define priorities, develop targeted measures and implement reforms effectively”. This, the companies say, will help to boost Germany as an economic hub and create a stable and inviting investment landscape for investors.
The 61 private companies participating in the initiative include major players from a wide variety of industries, from banking and automotive to semiconductors and pharmaceuticals. The full list of initiative members can be found here.
The initiative is supported by a collective pledge to invest €631 billion by 2028, demonstrating the companies’ continual commitment to the growth of the national economy.
The investments reportedly includes a mix of both planned and new capital investments and R&D efforts, although exactly how much of the total comprises new commitments is unclear.
“Germany needs a new operating system – one focused on growth, technology, and competitiveness. The time for change is now. Government and business must forge a new kind of partnership and take joint responsibility for society,” said Roland Busch, the CEO of Siemens. “This initiative embodies that spirit of solidarity and stands for a fresh start: with less bureaucracy, and more innovation. Germany is home to world-class companies, has a strong industrial base, and exceptional talent. We have everything it takes to reclaim a leading economic role – especially in digitalization and artificial intelligence.”
Busch’s reference to ‘joint responsibility’ should not come as a surprise given the recent pressure on the German government to make its investment landscape more appealing. In fact, the initiative’s announcement follows major government reforms to debt handling announced earlier this year. These reforms focus primarily on revising the strict borrowing rules that were introduced after the 2008 global financial crisis, removing what has been described as a ‘fiscal straitjacket’ on Germany’s economic growth.
In parallel, the government also pledged to create a €500 billion infrastructure fund to modernise the nation’s infrastructure and bolster national defence. Industries targeted for this funding include energy, transport, R&D, education, and healthcare.
“We are facing one of the largest investment initiatives that we have seen in Germany in recent decades,” said German Chancellor Friedrich Merz at a news conference announcing the ‘Made for Germany’ initiative. “The investment tasks we are facing cannot be achieved by public budgets alone. On the contrary, the lion’s share must be provided by private investors.”
But what does this all mean for the German telecoms sector?
While Deutsche Telekom and United Internet (1&1) are the only explicitly telecoms companies directly listed as participating in the ‘Made for Germany’ initiative, the sector as a whole has much to gain from its creation. When combined with the newly created infrastructure fund, the German market can expect €1 trillion to be poured into infrastructure and industrial projects in the coming years, all of which will need to be backed by the provision of high quality connectivity. This opportunity will be particularly acute around heavy industries like the automotive sector, where digitalisation efforts to expand the use of robotics, IoT, and AI will rely on high capacity low-latency connectivity – at least, that is what the telcos will argue.
At the same time, the reduction in bureaucratic hurdles and closer public–private cooperation could allow for the further acceleration of fibre rollouts, an area where Germany still significantly lags behind the rest of Europe.
In short, as the German public and private sectors grow more closely aligned on investment, German telcos will strive to position themselves key enablers of national digital transformation, without whom economic growth will remain unattainable.
How is the German connectivity market changing in 2025? Join the discussion at Connected Germany live in Munich
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