All citizens in the EU should have a gigabit connection by 2030. The EU Commission formulated this goal in its decision of December 2022 on the establishment of the 2030 policy program for the digital decade. Rapid expansion of fiber-optic infrastructure is also being called for by all sectors, including the real estate industry. The COVID-19 pandemic was only one event of several to reveal the EU’s shortcomings in terms of digital connectivity. The EU Commission’s draft Gigabit Infrastructure Act, published on February 23, is designed to implement the necessary changes to achieve the gigabit connection goal. To facilitate the gigabit rollout to end users, buildings will have to be built “fiber ready”.

This upcoming EU Regulation may have implications for real estate projects. As the draft is a Regulation, it will be directly applicable in Germany, i.e., without the need for an implementing act. The draft is currently being discussed in the Council of the European Union, after which it goes before the EU Parliament.

Of interest to the real estate sector are Art. 8 and Art. 9 of the draft:

• In newly contracted buildings or building undergoing major renovations, passive infrastructure (mini ducts) and in-building fiber wiring (fiber optic cables) must be installed up to the network termination point in the end user’s apartment/unit.
• In the case of apartment buildings, an access point to the passive infrastructure must also be set up in this case (idR in the basement).
• Major renovations are those (i) for which a building permit must be issued and (ii) that are “major renovations” in the sense of the Energy Performance of Buildings Directive, Art. 2 clause 10 of Directive 2010/31/EU, which has been implemented in Germany by the Building Energy Act (GEG).
• The requirements apply to projects whose building permits were applied for 12 months after the Regulation comes into force. In other cases (i.e. “major renovations” as defined by the Energy Performance of Buildings Directive), the obligation applies 12 months after the Gigabit Infrastructure Act comes into force.
• Exemptions apply to historic buildings, among others; or, for example, if the installation is disproportionate.
• There will be a certification for buildings that are “fiber ready”. The requirements are to be defined by the member states.

Section 145 para. 4 and 5 of the German Telecommunications Act (TKG) already stipulates that passive infrastructures accommodating fiber optic lines must be installed in new buildings and extensive renovations. However, the proposed new EU Regulation goes beyond this, because it also requires the building to be equipped with fiber wiring.

Under certain circumstances, access to this infrastructure has to be granted to providers of communications networks.

For interested readers we attach the link to the draft Regulation of the EU Commission of the Gigabit Infrastructure Act: Gigabit Infrastructure Act Proposal and Impact Assessment | Shaping Europe’s digital future (europa.eu)

Due to the upcoming changes, owners and project developers may have to reconsider the structure to ensure compliance with the new law regarding the installation of passive infrastructure and fiber wiring in the projects.

If you have any questions on this topic, do not hesitate to contact one of our experts.