Author: Kaspars Reinholds, Director of the Telecommunications Networks Department, SIA Latvijas Energoceltnieks

In the 21st century, digital infrastructure has become one of the most strategically valuable resources. Without a modern high-speed data transmission system, neither innovation, nor a competitive economy, nor societal security—especially vital in these challenging times—can truly exist. The European Union has embedded this understanding in its Digital Decade Strategy, which foresees that by 2030, all households should have access to gigabit-speed internet, and all populated areas should be covered by 5G. To achieve these goals, an increasing number of countries are consciously choosing fiber-optic internet as the backbone of their digital future. In this respect, Germany stands out as a striking example.

Germany’s Digital Transformation Paradox

Although Germany is Europe’s economic powerhouse, it still lags behind the goals of the Digital Decade. Paradoxically, a country with such strong engineering traditions suffers from insufficient digital infrastructure and a lack of digital skills. Only half of the population has acquired basic digital competences, and fiber-optic network coverage remains significantly below the European average. This slows down digital progress both for society and for businesses. The German government has recognized this and is responding decisively—investing heavily through its Gigabit Strategy, supporting semiconductor and quantum technology projects, and promoting SME digitalization.

Germany’s “Gigabitstrategie 2030”

Germany’s Gigabit Strategy 2030 sets an ambitious but clear target: to provide high-speed fiber connections to all households and businesses, whether in urban centers or remote rural areas. By 2025, at least half of all households should be connected to fiber, with full gigabit coverage planned by 2030.

Both public and private funds are involved in developing Germany’s optical infrastructure. In 2023, the European Commission approved up to €38 billion in public investment—drawn from national and EU funds—for broadband expansion in Germany by 2028, ensuring gigabit coverage even in rural regions. In parallel, Germany’s telecommunications industry announced plans to invest around €50 billion in private fiber-network deployment over the next few years, bringing the total potential public and private investment to more than €80 billion. These investments reflect Germany’s strategic determination to make optical networks the foundation of its digital future, while safeguarding economic independence and technological sovereignty.

Visible Results

By the end of 2024, fiber network availability in Germany had reached 36.8% of households, and the growth rate continues to rise. While experts warn that achieving full coverage by 2030 may be challenging, Germany’s political commitment and consistent investment policy demonstrate a clear direction.

The Situation in Latvia

In the context of fiber network development, Latvia is often cited as a European success story. Our optical internet infrastructure has significantly improved in recent years, particularly in major cities where residents enjoy fast and stable connectivity. However, challenges remain—access to optical internet in rural areas is still limited, requiring further investment to ensure equal access nationwide. Moreover, Latvia’s 5G rollout has not advanced sufficiently, which may hinder future digital economic opportunities. To fully harness the potential of fiber-optic internet, Latvia must continue modernizing its infrastructure and promote policies supporting fast and reliable internet access for all. Germany’s example provides a valuable model.

Why Fiber-Optic Internet?

Some might ask: why invest specifically in fiber when there are solutions like Starlink? The choice of fiber is based on both technological and economic reasoning. Fiber networks provide the highest capacity, low latency, and exceptional reliability. Latency—delay in data transmission—is particularly critical. In optical networks, latency is measured in a few milliseconds, whereas even the most advanced low-earth-orbit (LEO) satellite systems (such as Starlink) have latency around 40–50 ms, and geostationary networks can reach up to 600 ms. This makes a major difference for real-time applications such as video conferencing, online gaming, financial transactions, or industrial automation.

Fiber networks offer gigabit speeds in both directions, with virtually unlimited capacity—if more bandwidth is needed, only the terminal equipment must be upgraded, not the cable itself. Fiber is also long-lasting and energy-efficient: optical modems consume just a few watts, compared to satellite antennas that require tens of watts.

Another key argument is economic logic and digital sovereignty. Investing in fiber infrastructure keeps resources within the local economy, supporting construction, technology, and telecommunications sectors. Such infrastructure lasts for decades and provides the foundation for future technology generations. In contrast, reliance on satellites entails ongoing payments abroad, creates limited local value, and offers less security control.

Security is another critical factor: data flows through a physically controlled cable, making it much harder to intercept, while satellite signals can be received anywhere—raising the risk of hacking or data leaks. Moreover, fiber networks are stable and immune to electromagnetic interference, terrain variations, or weather conditions that can disrupt satellite internet and compromise critical systems such as financial transactions, government operations, or industrial automation. Therefore, fiber infrastructure provides not only speed and low latency but also superior security and reliability as the backbone of a digital society—while satellites should serve as a complementary solution.

Satellite internet is an important complement to modern digital infrastructure, particularly for connecting remote or hard-to-reach regions. However, technical and economic constraints prevent it from being a full alternative to fiber networks. Studies show that satellite systems face limitations in overall capacity and spectrum, as well as speed degradation as user numbers grow. Weather also plays a significant role—moderate precipitation can reduce data throughput by up to 25%.

Thus, satellite internet remains an essential component of the digital ecosystem, but a complementary one. Europe’s sustainable digital future will be built on fiber networks as its foundation, with satellites serving as flexible and resilient support.

What Can Latvia Learn from Germany?

Germany’s experience offers Latvia a clear lesson: a digital development strategy must be purposeful and sustainable. To maintain competitiveness and reduce the digital divide, Latvia should adopt a similar approach—set a clear national goal of achieving gigabit connectivity for all households by 2030, and, most importantly, prioritize fiber deployment as core infrastructure. Only such a strategic approach will ensure that technological progress reaches even the most remote rural areas and that Latvia meets its Digital Decade objectives.

Resources:
https://digital-strategy.ec.europa.eu/en/library/2023-report-state-digital-decade
https://voip.review/2024/07/30/germany-boosts-fibre-funding-38b-streamlines-deployment/
 https://www.lightreading.com/fttx/germany-sets-out-fiber-5g-ambitions
https://omdia.tech.informa.com/om128296/germanys-fiber-rollout-falls-short-putting-2025-targets-at-risk#:~:text=Germany%20aims%20to%20cover%2050%25%20of%20households%20with,mid-2024%2C%20it%20has%20a%20wide%20gap%20to%20close.
https://digital-strategy.ec.europa.eu/en/factpages/latvia-2024-digital-decade-country-report
https://www.telarus.com/blog/modern-satellite-connectivity-explained/
https://arxiv.org/html/2507.23528v1?utm_source
https://www.researchgate.net/publication/392237625_Throughput_Analysis_of_Starlink_Satellite_Internet_Study_on_the_Effects_of_Precipitation_and_Hourly_Variability_with_TCP_and_UDP