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    DNS:NET is a leading independent telecommunications provider in Germany. Established in 1998, DNS:NET owns the largest independent fibre-to-the-cabinet network in the Berlin area and is rolling out a fibre-to-the home network in Berlin and the surrounding regions.

    The company differentiates itself through a superior network, local brand recognition and attractive pricing of high bandwidth products, which drives high customer satisfaction. 3i Infrastructure’s backing will allow DNS:NET to accelerate its build programme to provide gigabit-ready connectivity to its customers. 

    Recent Developments

    DNS:NET received investment of £34 million during the year from 3iN to continue the development of its FTTH network in areas around Berlin and in the State of Brandenburg. A new CEO joined DNS:NET in July 2023. He has overseen the preparation of an updated business plan that was agreed with shareholders in December 2023. We are making good progress in building a strengthened and experienced management team.

    FTTH network rollouts in Germany remain challenging. Passing homes has been the industry’s primary focus to date. Connecting and activating customers to the network on a timely basis is an industry-wide challenge. The negative value movement in the year was driven by more conservative business plan assumptions for DNS:NET’s FTTH rollout. Throughout the year, DNS:NET has focused on connecting backbone fibre infrastructure and home connections for its owned network, as well as on securing the handover of leased networks built by authorities in the neighbouring State of Saxony-Anhalt, making good progress in the number of its connected and activated customers as a result.

    The company is now preparing for the next stages in its network delivery in a way that narrows the time lag between passing homes and connecting and activating customers on that FTTH network to improve performance. We have increased the discount rate to reflect uncertainties over available debt pricing for fibre businesses in future years and the delay against the original rollout timetable.

    Investment rationale

    In June 2021, 3i Infrastructure plc invested c.€182m to acquire a 60% stake in DNS:NET.

    Fibre is superior to other broadband access technologies because it provides reliable low latency, high bandwidth and distance-independent connectivity for both download and upload.  Demand for FTTH connectivity is forecast to grow rapidly, as consumers normalise data intensive activities such as cloud-based remote working, high definition streaming and online gaming, and increasingly view high speed broadband as an essential service.

    Germany lags behind most European countries in its FTTH deployment, with only 14% coverage today compared to the European average of 33%.  The market is projected to grow at 30% p.a. to meet the German government’s objective of every one of its 43 million households having access to gigabit speed broadband by 2025.


    DNS:Net is progressing the rollout of its FTTH network in areas around Berlin (Berlin Vicinity) and in the State of Brandenburg. The provision of FTTH is widely recognised as a key driver of regional economic growth and socio-economic benefits and, through the replacement of older copper line technologies, potentially reduces energy consumption. Studies report that the value-added services enabled by high speed internet facilitated by FTTH connectivity can reduce travel requirements, enhance the quality and cost of delivering of local services and improve access to medical advice in rural areas.