Vodafone Germany Presses Fibre and Cable Offensive, Intensifying Broadband Competition

DÜSSELDORF, 18 January 2026 – Vodafone Germany is executing a multi-pronged strategy to solidify its position in the nation’s broadband market, combining aggressive fibre-optic expansion with a massive modernisation of its legacy cable TV network. This push, leveraging partnerships and a multi-billion-euro joint venture, is applying significant pressure on incumbent Deutsche Telekom and reshaping the competitive dynamics of Germany’s internet landscape.

Building the “Largest Unified” Fibre Network

Vodafone has announced it now presides over what it terms the “largest unified fibre-optic network” in Germany, with a potential reach exceeding 11 million households and businesses. This achievement is not solely based on its own infrastructure builds but heavily relies on strategic infrastructure-sharing partnerships. The company has activated offers on the networks of rivals Deutsche Telekom and Deutsche Glasfaser, accessing approximately 9.5 million additional premises. Furthermore, its joint venture with Altice, OXG Glasfaser, has commenced expansion targeting 1.3 million households, with an ultimate ambition to serve seven million new fibre connections.

“We are digging ourselves and with our expansion partners from OXG. And we are sharing infrastructure to increase competition and the range of services for people,” stated Vodafone Germany CEO Marcel de Groot. This partnership-driven model allows Vodafone to rapidly scale its fibre footprint without the capital intensity of a sole overbuild, a strategy particularly evident in its recent partnership with the state of Hesse, aiming to connect up to 520,000 households by 2030.

Hybrid Network: Gigabit Cable and Future-Proofing with DOCSIS

Parallel to its fibre ambitions, Vodafone continues to leverage its core asset: one of Europe’s largest Hybrid Fibre-Coax (HFC) cable networks, reaching approximately 24 million households. The company has invested heavily in upgrading this network to DOCSIS 3.1 technology, enabling theoretical download speeds of up to 10 Gbit/s. Industry tests, such as those by CHIP and COMPUTER BILD in 2025, have ranked Vodafone’s cable network highly for both maximum download speeds and price-to-performance ratio.

The modernisation programme involves thousands of “segmentations” – splitting overloaded network segments and adding more fibre-optic links to regional nodes – to improve stability during peak hours. Looking ahead, Vodafone has confirmed plans to upgrade to DOCSIS 4.0, potentially from 2030, which promises symmetrical multi-gigabit speeds and features like low latency, further extending the life and competitiveness of its coaxial infrastructure.

Market Dynamics: Vodafone’s Ascent vs. Telekom’s Dominance

Vodafone’s aggressive moves occur within a German fixed-line market still characterised by the enduring dominance of Deutsche Telekom. Analyses, such as the 2024 VATM study, indicate that nearly two-thirds of all fixed-line connections still run over Telekom’s copper platform, generating significant wholesale revenue for the incumbent. However, the trend is shifting.

Vodafone, including its acquired cable assets, held a broadband market share of roughly 30% in 2023. Its strategy is twofold: migrate customers from slower DSL connections onto its faster cable and fibre networks, and directly challenge Telekom in the nascent fibre market. Telekom is responding with its own accelerated FTTH rollout but currently prioritises “homes passed” over “homes activated,” a gap Vodafone aims to exploit with aggressive retail pricing.

Strategic Challenges and the OXG Question

Vodafone’s path is not without obstacles. Its ambitious fibre expansion hinges critically on the OXG joint venture with Altice. Reports emerged in February 2025 that Altice was considering exiting the venture, which could disrupt Vodafone’s plans to connect seven million households. While Vodafone stated OXG remains financially stable, the potential withdrawal of its partner introduces uncertainty into a capital-intensive, long-term project.

Furthermore, a 2025 change in German tenancy law, allowing residents in multi-dwelling units to choose their provider, has impacted Vodafone’s service revenues, historically reliant on building-wide cable contracts. The company reported securing 2.6 million households but faces ongoing churn from this segment.

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Frequently Asked Questions

What is Vodafone’s main broadband technology in Germany?

Vodafone operates two primary fixed-network technologies: its extensive Hybrid Fibre-Coax (HFC) cable network, upgraded to DOCSIS 3.1, and a growing fibre-to-the-home (FTTH) network built through its own projects and the OXG joint venture.

How does Vodafone’s cable internet differ from Deutsche Telekom’s DSL?

Cable technology (DOCSIS) currently supports much higher maximum download speeds (up to 1 Gbit/s widely, 10 Gbit/s theoretically) compared to traditional VDSL (up to 250 Mbit/s). However, cable bandwidth is shared within local network segments, which can affect speeds during peak times, whereas DSL provides a dedicated line to the exchange. Vodafone’s network segmentation aims to mitigate this shared bandwidth issue.

Is Vodafone planning a full fibre rollout everywhere?

No. Vodafone’s strategy is hybrid. It will continue to modernise and use its existing cable network where feasible, especially in dense urban areas. Fibre (FTTH) rollout is focused on new expansion areas, partnerships with municipalities, and through the OXG joint venture, targeting areas where cable does not reach or where future-proof symmetrical speeds are demanded.

What are the implications of Altice potentially leaving the OXG venture?

Altice’s potential exit introduces significant uncertainty. Vodafone would need to find a new financial and operational partner or shoulder the massive investment alone, which could slow down the fibre rollout timeline and affect Vodafone’s competitive position against Telekom and other fibre builders like Deutsche Glasfaser.