Many tenants in Germany also pay for the cable TV connection with their ancillary costs. The monthly costs for this amount to around 10 euros. But that will soon be over, because the federal government has decided to abolish the apportionability of the TV connection fees via the ancillary costs.
Since the 1980s, landlords have had the option of concluding a framework agreement with cable providers and supplying apartments with cable television. They pass on the monthly costs incurred for the cable connection to the ancillary costs, which each tenant has to pay equally – whether they use the connection or not. But the federal government overturned this apportionability as early as spring 2021 as part of the modernization of telecommunications law in Germany. A transitional period has been running since then.
The reform will finally come into force on June 30, 2024. From this point on, landlords are no longer allowed to pass on the cost of the cable TV connection to their tenants. If you then want to continue watching cable TV, you have to take care of a connection yourself and bear the costs for it.
Who will benefit from the new law….
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 ancillary costs. After several discussions, the Bundestag approved the Federal Government’s draft law for the modernization of telecommunications law in the amended version 2021. The Federal Council also approved the change.
With the reform, the federal government wants to give tenants the opportunity to decide for themselves in 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 – your selected TV access plus the fee for the cable connection included in the additional costs.
Also read: TV over the Internet – IPTV offers in comparison
With the elimination of the “compulsory costs”, even more people may opt for alternative TV access. The decision therefore has some advantages for them, as it brings more freedom and reduces their monthly costs. Providers such as Deutsche Telekom or 1&1 should also be happy about the revision of telecommunications law. Unlike Vodafone, for example, the companies do not operate a TV cable network themselves, but offer packages for television via the Internet.
Ultimately, those who no longer rely on linear television will also benefit from the new regulation. Whether they have subscriptions to one or more streaming services or even do without a television completely – they no longer have to pay extra in the form of additional costs.
… and for whom the change in the law will bring 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 for the full range of services. Older people may also be reluctant to switch to new connection methods such as television via 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.
Also read: Which TV connection is right for me?
Will the cable TV connection become more expensive?
After the new law comes into force, customers can stay with cable television. But the connections will then probably be more expensive. Currently, the monthly costs for a cable connection in the additional costs are mostly between 8 and 10 euros – relatively low, especially if you look at the TV costs in other European countries. Such a low fee is possible due to the mass of users. Cable providers can offer housing associations low-cost contracts because they still earn a good amount of money from the large number of connections gained in this way, but at the same time have comparatively little administrative effort. Customers and providers benefit.
But with the change in the law coming into force from mid-2024, tenants will then have to conclude individual contracts with the network operators. And cable providers fear that not everyone will do so. In those cases where they do, the individual care increases the effort involved, which is associated with higher administrative costs. The providers then pass these on to the customers – as can already be seen with the current costs of individually concluded cable contracts. A single cable TV connection with Vodafone, for example, costs around 18 euros a month – around twice as much as with a contract via the landlord.
According to the consumer advocates, it will probably not be that expensive. At least that’s what the first experiences with terminated multi-user contracts show. The consumer advice center expects the conclusion of individual contracts to increase the monthly TV cable fee by around 2 to 3 euros.
By the way: For owners of a condominium, what the community of owners decides applies. You can decide whether to continue the multi-use contract. 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 continues as usual and the ancillary cost privilege remains.
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Problems for ALG II recipients
Recipients of government payments are sometimes hard hit by the change. For example, the office often pays the ancillary costs for recipients of citizen’s income (until the end of 2022 ALG-II), and thus also the costs for the cable connection. On the other hand, they would have to pay for a connection they had commissioned themselves, which is likely to be difficult for some. Axel Gedaschko, President of the Central Association of the Housing Industry GdW, is therefore critical of the reform. “With this new regulation, low-income households will be burdened: From mid-2024, the TV costs will no longer be covered by the municipality as accommodation costs.”
Other voices see more equality in the reform. Because not all citizen income recipients can bill their TV connection via the additional costs and have to pay for it themselves. They are thus disadvantaged compared to the other group.