State of Hesse puts together packages for the further expansion of high-performance communication infrastructures

For the state of Hesse, January 2022 was all about continuing the expansion of digital infrastructures. The course was set on three pillars for sustainable and future-oriented fixed and (mobile) wireless networks. In addition to the provision of a new financing instrument for the gigabit expansion in Hesse, the “Future Pact for Mobile Communications in Hesse” aims to consolidate the expansion of high-performance LTE and 5G networks in the region and extend the “Digital Village Lime Tree” Wi-Fi funding program once again.

With the “Loan to finance the own contribution in connection with the subsidized gigabit expansion in Hesse“, the Hessian state government has added another building block to its portfolio of support services for broadband expansion. Companies under private law or companies in another legal form that are wholly owned by the public sector and which aim to improve broadband coverage in underserved areas are eligible to apply for such a loan. The loan amount in each individual case is at least three million euros, and the total amount of the loan program will initially be capped at around 60 million euros. This new financing instrument is intended to provide support within the framework of the federal government’s grey-spot funding program in order to offer additional support for the operator’s own contribution in the case of operator models in addition to the up to 90 percent funding from the federal and state governments. Applications for the loan can be submitted to the Wirtschafts- und Infrastrukturbank Hessen from now until December 31, 2025.

The “Future Pact for Mobile Communications in Hesse” focuses on network densification and improving network quality. The new agreement, which builds on the first mobile communications pact successfully concluded in 2018, comprises four central pillars – “mobile coverage and network quality”, “acceleration of procedures”, “dialog and transparency” and “political framework conditions” – which are intended to accelerate the expansion of mobile communications in Hesse by the end of 2024 and significantly improve coverage with current and future mobile communications standards. The agreement was signed on 25 January 2022 by Hesse’s Minister President Volker Bouffier and Hesse’s Digital Minister Prof. Dr. Kristina Sinemus with Walter Goldenits (Deutsche Telekom), Valentina Daiber (Telefónica Deutschland) and Dr. Hannes Ametsreiter (Vodafone). According to the signatories, market-driven expansion remains the top priority. As part of the agreement, the mobile network operators therefore undertake to implement 4,000 additional expansion and extension measures to increase network density. At the same time, the 5G expansion is to be continued and managed more efficiently via the existing mobile communications monitoring system. In addition, the Hessian state government is investing 50 million euros in the new construction of up to 300 additional mobile communications sites as part of the mobile communications funding program in order to eliminate the last white mobile communications spots in Hesse.

The promotion of public Wi-Fi infrastructures is also an important pillar of the gigabit strategy for Hesse. The “Digital Village Lime Tree” program was originally planned to run from September 2018 to the end of 2019, but has already been extended several times due to the consistently positive response. With the extension, which will initially run until the end of August 2022, the state government is responding to the continued high demand from Hessian municipalities for the funding program. With the extension of the “Digital Village Lime Tree”, the previous funding conditions will also be maintained. The funding rate continues to be up to 90 percent of the eligible expenditure, and a maximum of 1,000 euros can be funded per hotspot. A maximum of 20 hotspots per municipality are eligible for funding.