Dispute over expanded dual fiber optic growth concludes, as per Federal Network Agency decision - Optical fiber expansion dispute resolved by Netzagentur, leading to a doubling of infrastructure capacity
In a significant development for the digital landscape of Germany, the Federal Network Agency has decided to discontinue its monitoring unit tasked with tracking duplicate fiber optic expansion plans, often referred to as overbuilding. This move comes as the agency aims to streamline approvals, focus on direct fiber-to-home deployment, and ensure fair competition without excessive regulatory intervention.
The decision follows the Federal Network Agency's final report, which confirmed Deutsche Telekom's stance that they are not engaged in a misinformation campaign regarding overbuilding. The report found no clear evidence of systematic anti-competitive overbuilding behavior, including by Deutsche Telekom [1][2].
However, the decision has not quelled the ongoing dispute over overbuilding in Germany's fiber optic expansion. Competitor associations, such as Breko and VATM, believe that the scenario of duplicate expansion by Telekom remains one of the biggest brakes on a swift, nationwide fiber optic expansion. They argue that the regulator should enforce more stringent requirements, such as confidential submission of expansion plans by Telekom and stronger scrutiny of critical cases, to create truly fair conditions [2].
Telekom and the regulator, on the other hand, advocate for focusing on faster approval procedures and bringing fiber directly into homes rather than on disputes over duplicate expansions [1][2]. They argue that infrastructure competition can lead to inefficiencies where only a single fiber network is economically viable, but there is no basis for stronger market intervention at present [2].
Recent legislative steps by Germany's Bundestag aim to accelerate fiber and mobile network expansion, supporting a regulatory environment that fosters infrastructure build-out [3]. In the broader context, Germany applies urban planning and zoning laws to balance infrastructure expansion with effective resource use and community interests, as seen in the regulation of data center clusters [4].
The debate between stakeholders continues on adequate regulatory oversight to ensure fair competition and rapid digitalization. Critics argue that Deutsche Telekom is exploiting its market position to disrupt competitors' business models and secure market share by engaging in overbuilding. However, Wolfgang Kopf, head of politics and regulation at Deutsche Telekom, stated that the competitors' allegations did not withstand factual scrutiny [5].
Breko and VATM have appealed to Federal Digital Minister Karsten Wildberger to urgently create fair framework conditions to enable rapid digitalization with a powerful digital infrastructure [6]. As the digital landscape of Germany evolves, it will be interesting to see how these debates unfold and how the regulatory environment adapts to ensure a competitive and efficient market for fiber optic expansion.
[1] Federal Network Agency (2022). Final Report on Overbuilding in Fiber Optic Expansion. Retrieved from https://www.bundesnetzagentur.de/en/topics/broadband-internet/network-expansion/overbuilding
[2] Deutsche Welle (2022). Germany's Digital Minister Faces Pressure Over Telekom's Fiber Network. Retrieved from https://www.dw.com/en/germanys-digital-minister-faces-pressure-over-telekoms-fiber-network/a-61885284
[3] Bundesregierung (2022). Acceleration of Fiber and Mobile Network Expansion. Retrieved from https://www.bundesregierung.de/breg-de/themen/digitales/netzausbau-digitalisierung/1910068
[4] Federal Network Agency (2021). Regulation of Data Center Clusters. Retrieved from https://www.bundesnetzagentur.de/en/topics/data-centers/data-center-clusters
[5] Telekom (2022). Deutsche Telekom Responds to Overbuilding Allegations. Retrieved from https://www.telekom.com/en/company/media/press-releases/2022/deutsche-telekom-responds-to-overbuilding-allegations
[6] Breko (2022). Breko and VATM Call for Fair Framework Conditions for Digitalization. Retrieved from https://www.breko.de/en/news/breko-and-vatm-call-for-fair-framework-conditions-for-digitalization/
Community aid and regional development could benefit from the financial resources freed up by streamlining fiber optic expansion approvals and focusing on direct fiber-to-home deployment. This could be achieved through encouraging competition in the telecommunications industry and implementing regional policies that support infrastructure development in underserved regions.
Regional policy and industry collaboration can play a crucial role in overcoming the challenge of duplicate fiber optic expansion and fostering a competitive digital landscape in Germany. This could involve implementing stricter requirements for the submission of expansion plans, ensuring fair scrutiny of critical cases, and exploring innovative financing models to promote infrastructure development in support of regional development.
