TKG amendment: Associations call for modernization of levy eligibility in favour of fibre optics

Modernization of levy eligibility accelerates nationwide fibre optic expansion
Open network access to strengthen competition and consumer freedom of choice
Giving companies planning and investment security

Berlin, 28.01.2021 On the occasion of the Bundestag’s deliberations on the TKG amendment, the German Broadband Association (BREKO), the German Fibre Association (BUGLAS) and the Association of Municipal Enterprises (VKU) are calling for a modernization of the much-discussed apportionment of operating costs for broadband connections to ancillary rental costs. In the view of the associations, the aim must be to accelerate the nationwide expansion of fiber optics with suitable framework conditions.
“The digital transformation in Germany can only succeed if future-proof fiber optic connections are available for citizens and companies. The past few months of the corona pandemic in particular have once again impressively demonstrated this necessity,” emphasize BREKO, BUGLAS and VKU. The discussion about the ability to pay-as-you-go should be seen as an opportunity to equip the instrument with new strengths for the future. “A modernized pay-as-you-go system would be a reliable means for the expanding companies to implement expansion projects economically and in the long term. In other words, there is great potential in levy eligibility to give a real boost to fibre optic expansion, especially where there is multi-family housing development,” say the associations.
Modernized levy eligibility should focus exclusively on the expansion of fibre optic connections. A clear focus on fiber optics leads to a win-win situation for tenants and landlords. Tenants receive high-quality fiber optic connections at attractive prices. Building owners and housing associations increase the attractiveness of their properties and at the same time increase the value of the buildings.
The associations agree that the possibility of apportionment must be linked to the obligation to provide open access to the network in future. This is important and necessary in order to strengthen competition: All market participants have the opportunity to offer their services to tenants. “It is very important to us that tenants are free to choose which offer and which provider they opt for. The aim should be to attract customers with good offers,” BREKO, BUGLAS and VKU emphasize.
The associations believe that the so-called perpetuity guarantee of the existing apportionability, which has been criticized in some quarters, should be removed: The usage fee to be apportioned should apply for an appropriate, multi-year period from the commissioning of the new fiber optic network and no longer for an indefinite period, as was previously the case. On the one hand, this ensures the necessary planning security for the companies and investors involved in the expansion. On the other hand, tenants will no longer be required to pay indefinitely for a depreciated infrastructure.
In view of the short time until the end of the legislative period, the BREKO, BUGLAS and VKU associations are also appealing to political decision-makers to give the discussion on modernized apportionment eligibility sufficient space. A deletion of the ability to pay-as-you-go without replacement would cause the efforts on the way to the nationwide availability of fiber optic connections to fizzle out. On the other hand, a reorientation of the levy eligibility would accelerate the expansion of fiber optics.