Many tenants in Germany also pay for cable television connections with their additional costs. The costs for this are around 10 euros per month. But that will soon come to an end, because the federal government has decided to abolish the ability to allocate TV connection fees to additional costs.
Since the 1980s, landlords have had the opportunity to conclude a framework agreement with cable providers and supply apartments with cable television. They pass on the monthly costs for the cable connection to the additional costs, which each tenant has to pay equally – whether they use the connection or not. The whole thing is therefore also called additional cost privilege. But the federal government overturned this apportionment ability as part of the modernization of telecommunications law in Germany in spring 2021. A transition period has been running since then.
The reform will come into force on June 30, 2024. From this point on, landlords are no longer allowed to pass on the costs of the cable TV connection to their tenants. If you want to continue watching TV via cable, you have to find a connection yourself and pay the costs. Vodafone, as the largest cable TV provider in Germany, has already disclosed what costs tenants will face.
Who benefits from the new law…
Already in the summer of 2020, Economics Minister Peter Altmaier (CDU) and Transport Minister Andreas Scheuer (CSU) announced plans to remove the costs for the cable connection from the additional costs. After several discussions, the Bundestag approved the federal government’s draft law to modernize telecommunications law in an amended version in 2021. The Federal Council also approved the change.
With the reform, the federal government would like to give tenants the opportunity to decide for themselves in the future how they receive their television programs. Instead of cable, many users use DVB-T2 or IPTV or streaming, for example. You may then pay twice – for your chosen TV access and the cable connection fee included in the additional costs.
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With the elimination of “compulsory costs”, even more people may choose alternative TV access. The decision has several advantages for them, as it brings more freedom and reduces their monthly costs. Providers such as Deutsche Telekom and 1&1 are also likely to be pleased about the revision of telecommunications law. Unlike Vodafone, for example, the companies do not operate a TV cable network themselves, but do offer packages for television over the Internet.
Ultimately, those who no longer rely on linear television will also benefit from the new regulation. Whether you instead have subscriptions to one or more streaming services or even go without a television completely – you no longer have to pay extra fees in the form of additional costs.
… and for whom the change in the law will have disadvantages
But if the cable connection is no longer included in the additional costs, this also has disadvantages. Possibly even for a large proportion of tenants in Germany. Most people still watch TV via cable – not only because they pay for the connection anyway, but also because it is convenient. It also provides the basis for other services. For example, if customers want to book Sky and use the Sky Q program, this requires a cable or satellite connection to access the full range of services. Older people may also be reluctant to switch to new connection methods such as watching TV over the Internet. In addition, the coverage is not so good in all regions of Germany that the internet speed is sufficient for streaming. This leaves only DVB-T2 or satellite.
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This is what the TV cable connection with Vodafone will cost in the future
After the new law comes into force, customers can stick with cable television, but the costs will increase slightly. Currently, the monthly costs for a cable connection are usually between 7 and 9 euros – relatively low, especially when you look at the TV costs in other European countries. Such a low fee is possible due to the large number of users. Cable providers can offer housing associations cost-effective contracts because they still make a lot of money thanks to the large number of connections they gain, but at the same time have comparatively low administrative costs. Customers and providers benefit.
But with the change in the law coming into force in mid-2024, the billing process will change. According to Vodafone, tenants who would like to continue receiving cable TV have various options, but they depend on their landlord.
Variant 1: Landlord concludes multi-user contract with Vodafone
If the landlord concludes a multi-user contract with Vodafone as before (which many of the large housing companies have usually done or are doing), the tenant continues to pay the landlord directly for TV reception. The fee is then no longer billed as additional costs, but is collected from the tenant via an additional agreement. Those who do not want to use the cable TV connection can withdraw from the contract by opting out. Advantage in this case: The tenant does not have to conclude a direct contract with Vodafone.
Variant 2: Supply agreement between the landlord and Vodafone
Vodafone offers another new option for continuing to receive cable TV after the additional cost privilege has been removed. It is based on the so-called supply agreement that the landlord must have concluded with Vodafone. According to the network operator, many landlords have already done this, but the provider does not provide any details.
If the landlord has a supply agreement, the tenant must conclude a direct contract with Vodafone and then receives the price specified in the supply agreement. According to Vodafone, this is generally less than ten euros per month, although “there are some very few exceptions,” as Vodafone confirmed to TECHBOOK.
The new tariff is called “TV Connect Start” and is aimed exclusively at tenants who previously paid for television reception via the cable network through the additional rental costs. It includes reception of a total of 97 television programs, including 28 in HD quality, regional and foreign language channels and more than 80 radio stations. Instead of paying the landlord, tenants pay the price for the cable TV connection directly to Vodafone with this model.
Vodafone advises all tenants for whom the landlord has not yet concluded a supply agreement to point this out and ask their landlord about cooperating with Vodafone in order to be able to benefit from the cheaper offer.
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Variant 3: Costs without a supply agreement
If there is no supply agreement between the landlord and Vodafone, the “TV Connect Standard” tariff applies. At 12.99 euros per month, this is more expensive than the starting tariff. The reason for the higher costs is, among other things, the greater effort required to manage the contracts individually, which in turn is associated with higher administrative costs.
Which option applies can be found in the Tariff query from Vodafone check. However, the provider points out that not every place of residence is currently stored in the database.
By the way: Whatever the owners’ association decides applies to owners of a condominium. You can decide whether to let the multiple use contract continue. As part of the amendment to the law, there is a special right of termination as of June 31, 2024. If this is not used, the old contract will continue to run as usual and the additional costs privilege will remain in effect.
Problems for citizens’ benefit recipients
Recipients of government payments are also sometimes hit hard by the change. For example, for recipients of citizens’ benefit (until the end of 2022 ALG-II), the office often pays the additional costs, and thus also the costs for the cable connection. However, if you order a connection yourself, you would have to pay for it yourself, which may be difficult for some people. Axel Gedaschko, President of the umbrella association of the housing industry GdW, is therefore critical of the reform. “This new regulation will put the burden on low-earning households: from mid-2024 onwards, TV costs will no longer be covered by the municipality as accommodation costs.”
Other voices see more equality in the reform. Because not all recipients of citizens’ benefit can bill their TV connection through the additional costs and have to pay for it themselves. They are therefore disadvantaged compared to the other group.