Vodafone withdraws from public internet exchanges in Germany

Vodafone announced on November 6, 2025, that it will completely withdraw from public peering at neutral internet exchange points across Germany. The move represents a significant shift in how one of the country's largest telecommunications providers manages network interconnections. According to heise online, the company plans to complete the transition in Germany by the end of 2025, with additional countries following in 2026.

The telecommunications provider will outsource all peering operations to Inter.link GmbH, a Berlin-based network service provider with a pan-European backbone network. This decision means Vodafone will no longer maintain a presence at DE-CIX in Frankfurt, the world's largest internet exchange point by data volume. In 2024, more than 1,100 networks connected through DE-CIX, with over 45 exabytes of data flowing through the exchange, according to the source documents.

The technical implications extend beyond simple infrastructure changes. Public peering at neutral exchange points operates on a settlement-free basis, where network operators pay port fees regardless of traffic volume. Private peering introduces a fundamentally different economic model. Content providers and network operators who previously exchanged data with Vodafone at no cost beyond port fees must now negotiate agreements with Inter.link and pay charges based on data volume.

Vodafone cited lower latencies, increased resilience, and cost savings as justifications for the transition. The company indicated that direct connections with major streaming services like YouTube and hyperscalers will remain intact. These direct peering relationships already existed to handle large data volumes efficiently. The consolidation through a single provider could reduce administrative complexity and enable efficiency gains through automation.

The technical rationale deserves scrutiny. Lower latencies through fewer public peering points raises questions, given that multiple exchange points typically create shorter routing paths. Enhanced resilience through reduced diversity also appears counterintuitive, as redundancy generally increases fault tolerance. Cost savings present a more plausible justification if Vodafone trades port fees at various exchange points for a bundled arrangement with Inter.link.

Inter.link operates connection points across seven German cities: Berlin, Frankfurt, Hamburg, Munich, Düsseldorf, Nuremberg, and Stuttgart. The company maintains network connections spanning over 300 data centers across Europe, with additional presence in Austria, Switzerland, Bulgaria, Denmark, Finland, France, Greece, the United Kingdom, Ireland, Italy, Croatia, Norway, Poland, Portugal, Romania, Sweden, Slovenia, Spain, the Czech Republic, Hungary, and the US state of Virginia.

The shift creates financial barriers for peering partners not already working with Inter.link. Smaller content providers, regional internet service providers, startups, and niche services that previously exchanged data freely at public exchanges now face negotiations and volume-based fees. The impact varies depending on infrastructure choices. Services using major hyperscalers that maintain direct connections with Vodafone remain unaffected.

Deutsche Telekom established a precedent for this approach, though reportedly with significantly higher tariffs. The telecommunications giant has faced years of criticism for restrictive peering policies. Multiple consumer protection organizations filed complaints against Deutsche Telekom with Germany's Federal Network Agency in January 2025, alleging the company created artificial bottlenecks and exploited them to charge content providers.

The dispute between Meta and Deutsche Telekom illustrates the tensions. Meta terminated direct peering with Deutsche Telekom in 2024 following a court ruling over what the company described as unprecedented and unacceptable fees. Meta criticized Deutsche Telekom for leveraging market power to construct what amounts to a paywall, undermining net neutrality principles.

Customers of Deutsche Telekom have reported slow connections to specific services for years, particularly during evening peak hours. The suspicion centers on deliberately constrained handoff points unless providers pay additional fees. For Vodafone customers, the practical consequences depend on whether content providers accept the new cost structure or route traffic through less efficient transit providers.

Thomas King, chief technology officer at DE-CIX, observed a tendency among large market participants to exploit dominant positions for monetizing not only internet access business but also network interconnection itself, according to the source materials. The strategy reflects broader efforts by major telecommunications companies to extract more revenue from existing infrastructure investments.

The architectural implications extend beyond individual business decisions. The internet historically developed around open, cost-free data exchange principles. DE-CIX was founded in 1995 to enable efficient, neutral data exchange without individual providers leveraging market power. Vodafone's withdrawal from this model represents another step away from decentralized, open structures toward commercialized, centralized logic.

Critics warn that large providers retreating from open peering ecosystems could reduce transparency and raise barriers for smaller operators. The shift from neutral exchange points that enable equal data exchange to private arrangements with volume-based pricing changes fundamental internet economics. Regional providers, which often lack negotiating leverage, face particular challenges.

The timing coincides with broader debates about network infrastructure costs and pricing models. While large telecommunications companies argue they need additional revenue to support network investments, content providers contend that restrictive peering policies create fast lanes for those willing to pay while degrading service for others. The Body of European Regulators for Electronic Communications has previously stated that peering represents the fairest and most cost-effective interconnection arrangement.

Regulatory intervention remains uncertain. Several questions lack clear answers. Will Germany's Federal Network Agency intervene, as consumer protection organizations have requested regarding Deutsche Telekom? How will smaller providers respond—by paying fees or seeking alternative routing? Will European Union net neutrality regulations apply to these interconnection arrangements? The regulatory framework for network interconnection continues evolving as traditional boundaries between access networks and backbone infrastructure blur.

The competitive dynamics deserve attention. Vodafone follows Deutsche Telekom in moving toward paid peering models, potentially creating pressure on other major providers to adopt similar approaches. This could fundamentally alter how internet traffic flows across Europe. Smaller providers and content companies that relied on neutral exchange points for affordable network access face an increasingly difficult environment.

Network interconnection policy traditionally received less attention than consumer-facing net neutrality debates. The technical infrastructure that determines how data moves between networks operates largely outside public view. Vodafone's announcement brings these underlying economics into sharper focus. The decision affects millions of users, though most remain unaware of peering arrangements that determine their service quality.

The company's move represents a calculated business decision to centralize network operations through a single provider. Whether this improves network performance or primarily serves cost optimization goals will become clear as the implementation proceeds through late 2025. Early indicators suggest the primary impact falls on smaller players in the internet ecosystem rather than major content providers with existing direct connections.

For the marketing and advertising technology community, these infrastructure changes carry indirect implications. Real-time bidding systems and programmatic advertising platforms depend on consistent, low-latency network performance. Changes in peering arrangements that increase latency or create performance variability could affect auction dynamics and campaign delivery, particularly for smaller ad tech companies lacking direct network agreements with major telecommunications providers.

Timeline

• April 17, 1996: heise online launches its news service, establishing itself as a leading source for telecommunications and technology infrastructure reporting
• 1995: DE-CIX founded in Frankfurt to enable neutral, cost-free data exchange between networks, becoming the world's largest internet exchange point
• 2024: Meta terminates direct peering relationship with Deutsche Telekom following court ruling on peering fees, citing unprecedented charges that undermine net neutrality
• 2024: DE-CIX processes more than 45 exabytes of data, serving over 1,100 connected networks at its Frankfurt exchange point
• January 2025: Consumer protection organizations file complaints with Germany's Federal Network Agency against Deutsche Telekom, alleging artificial network bottlenecks and exploitative charging practices
• November 6, 2025: Vodafone announces complete withdrawal from public peering at neutral internet exchange points, including DE-CIX Frankfurt
• Late 2025: Vodafone plans to complete transition to private peering through Inter.link across Germany
• 2026: Vodafone intends to extend private peering transition to additional countries where it operates networks

Summary

Who: Vodafone, Germany's second-largest mobile provider, announced the policy change affecting network interconnection arrangements with internet service providers, content delivery networks, and backbone operators. Inter.link GmbH, a Berlin-based network service provider, will handle all Vodafone peering operations.

What: Vodafone will exit public peering at neutral internet exchange points, including DE-CIX in Frankfurt, the world's largest internet exchange by data volume. The company will transition to private peering arrangements managed by Inter.link, introducing volume-based fees for network interconnection that previously operated on a settlement-free basis at public exchanges.

When: Vodafone announced the decision on November 6, 2025. The company plans to complete the transition in Germany by the end of 2025, with additional countries following throughout 2026. The timeline means affected networks must establish new peering arrangements with Inter.link within weeks.

Where: The changes affect Vodafone's network operations throughout Germany, with particular significance for the seven cities where Inter.link maintains connection points: Berlin, Frankfurt, Hamburg, Munich, Düsseldorf, Nuremberg, and Stuttgart. DE-CIX Frankfurt, which processed over 45 exabytes in 2024 across 1,100 connected networks, represents the most prominent exchange point from which Vodafone withdraws.

Why: Vodafone cited lower latencies, increased resilience, and cost savings as justifications for consolidating peering operations through a single provider. The decision follows Deutsche Telekom's earlier shift toward paid peering arrangements, suggesting telecommunications companies increasingly view network interconnection as a revenue source rather than a cost center. Critics argue the move monetizes infrastructure investments while creating barriers for smaller content providers and regional networks that previously exchanged traffic freely at neutral exchange points.