.

Vodafone Germany announced plans to invest an extra EUR 2 billion by the end of 2021 to roll out gigabit broadband services. The investment will include a combination of FTTP and upgrading its cable network, according Telecompaper. The biggest part of the additional capital expenditure, EUR 1.4-1.6 billion will go to connecting businesses. The target is fibre for 100,000 companies in around 2,000 business parks, deployed in co-operation with partners such as Deutsche Glasfaser and standalone. Another EUR 0.2-0.4 billion will go to subsidised projects with local municipalities. These are expected to reach around 1 million rural consumer homes. 
 
The remaining EUR 0.2 billion will be spent on delivering gigabit speeds across Vodafone's 12.6 million cable homes. in July Vodafone launched the new top speed of 500 Mbps on its cable network, which already reaches over a fifth of the footprint. 
 
Vodafone said the investments offer an attractive return, with the company expected to earn a payback within four years at the business parks and within six years in the rural areas. Overall, the investment should add 1-2 percent to mid-term service revenue growth at Vodafone Germany and above-average EBITDA margins. 
 
There should also be limited impact on cash flow, of EUR 100-20 million in the initial years. Vodafone still expects capex in the mid-teens as a percentage of revenue, excluding the extra investment in gigabit networks. 
 
The increased investment comes amid growing calls in Germany for more investment in full fibre networks. Rival Deutsche Telekom has focused more on VDSL, but recently gave into pressure and launched its first gigabit broadband subscription over FTTH.