Federal and state funds to finance the expansion of fiber optics
In order to create the basis for this expansion, the city of Salzgitter has applied for federal funding of just under 1,100,000 euros and state funding of around 540,000 euros. With a total investment sum of 2,200,000 euros to cover an economic viability gap, the city and the independent providers will have to contribute 25 percent.
The funding application covers the connection of 45 locations to a sustainable, future-proof and high-performance NGA network infrastructure (Next Generation Access (NGA) broadband supply). This will benefit 44 municipal educational institutions and independent schools. A specialist clinic will also be connected to the network.
The resulting fiber optic infrastructure is one of the key foundations for the successful implementation of the state of Lower Saxony's digital pact in Salzgitter.
What is a profitability gap?
It is the difference between the present value of all revenues and the present value of all costs of network construction and operation for a period of at least seven years.
This economic viability gap has so far prevented telecommunications companies from carrying out their own expansion.
With the profitability gap model applied by the City of Salzgitter, any profitability gap is closed for private sector operators of broadband infrastructures for the construction and operation of high-performance broadband coverage in the project area.
Project progress:
Status October 2024
The subsidized fibre optic connections have been completed. The last connections are now being put into operation so that all of Salzgitter's schools have a fast Internet connection.
Status September 2022:
Avacon Connect begins construction work. A fiber optic connection should be available to all of Salzgitter's schools by the start of the 2023/24 school year.
Status July 2022:
A cooperation agreement was concluded between the city of Salzgitter and Avacon Connect in order to realize the project together.
Status as of May 2021:
In compliance with strict hygiene regulations, Minister Dr. Althusmann presented Mayor Klingebiel with the funding decision from the state on 04.05.2021. The symbolic ground-breaking ceremony was then held together with Avacon Connect.
As of January 2021:
Avacon-Connect won the tender and will carry out the expansion.
What type of fiber optic supply is planned?
45 connections, including 44 municipal and independent schools as well as educational institutions and a clinic, are to receive connections with at least a theoretical supply capacity of up to one gigabit/s symmetrically through a subsidized, effective and technology-neutral fibre optic/broadband expansion.
(Symmetrical means that data downloads and uploads are equally fast. Many Internet connections are still asymmetrical, i.e. the download of data is faster than the upload).
Award procedure:
The City of Salzgitter, as the contracting authority/concession provider for a service concession, has opted for the negotiated procedure with a call for competition based on Section 12 of the Concession Procurement Ordinance (KonzVgV) in conjunction with Section 17 of the Public Procurement Ordinance (VgV). § Section 17 of the Public Procurement Ordinance (VgV). The award procedure is carried out in two stages.
Subsidies:
Contact person
Location
Stadt Salzgitter
Fachdienst Digitales und IT
Joachim-Campe-Straße 6-8
38226 Salzgitter (Lebenstedt)
