Bonn/Berlin, 01.03.2021 As part of the TKG amendment, the Telecommunications Act, including other industry-relevant legislation, is to be comprehensively modernized. Today’s expert hearing in the Bundestag, at which BREKO will also be heard as an expert, is one of the last milestones on the way to the new Telecommunications Act. As experience shows that the revision cycle of the TKG is at least eight years, the new law sets the course for the further expansion of fiber optics in Germany.

BREKO Managing Director Dr. Stephan Albers makes it clear how important the coming weeks are: “The TKG amendment is entering its final phase. In the coming weeks, we will create the framework conditions for the decisive stage of fiber optic expansion in Germany. On the one hand, it is important to clear the way for investments in fiber optic networks and, on the other hand, to create fair competitive conditions for the expanding companies. The government draft provides good impetus for this without, however, exhausting the possibilities for accelerating the expansion of fiber optics. We still need to turn the tide on some points if we want to remain competitive on a digital level in the coming years.”

It is particularly important that the new Telecommunications Act sets incentives for investment in the roll-out of fiber optics on a self-sufficient basis with a forward-looking regulatory concept. Above all, fair open access concepts must be given regulatory priority. “This should not only apply to the so-called co-investment models prescribed by the European Telecommunications Code, but also to telecommunications companies with significant market power that do not wish to make a co-investment offer or cannot find a co-investment partner, but submit an appropriate commitment to open network access that has been reviewed by the Federal Network Agency. Now is also the time to finally implement the principle of “Equivalence of Input” (EoI), explains Stephan Albers. The EoI concept stipulates that wholesale customers or co-investment partners have access to the same material and human resources as the sales department of the company with market power. This would allow, for example, the same databases to be used for information on connections and the same technician resources for provisioning and fault clearance. This would significantly reduce the risk of abuse of the dominant market position.

An important lever for accelerating the expansion of fiber optics would be to use the apportionability for the expansion of fiber optics to apartment buildings and apartments. In the BREKO’s view, it should therefore be comprehensively modernized and not, as planned in the draft law, deleted without replacement. BREKO has introduced a compromise proposal consisting of three central pillars into the discussion. In future, the levy option should be available for a period of seven years for newly constructed fiber optic networks to buildings and homes, and only if open access is granted, which enables other providers to offer their own services to customers via the new fiber optic network. On the other hand, only fiber optic networks that meet the above criteria should be protected. Stephan Albers summarizes the proposal as follows: “Now is exactly the right time to modernize the apportionability – for more fiber optic expansion and better home office conditions in the many apartment buildings in Germany. With our proposal, we are creating three added values in one fell swoop: an investment incentive for fiber optic expansion in apartment buildings, free choice of provider for tenants and, last but not least, an upgrade of the properties. A transitional regulation that goes beyond this, as is occasionally propagated on the market, would completely nullify the positive effects. Instead of freedom of choice for customers, incentives for investment in new fiber optic networks and competition for customers, the current situation would remain unchanged.”

BREKO is critical of the implementation of the universal service, in which the “legal entitlement to fast Internet” is also to be integrated. Albers comments: “In the form currently provided for in the law, the cumbersome construct of a universal service can only guarantee a minimum service for citizens from a legal perspective. This does not take us any further on the path to a nationwide fiber optic network, but delays the expansion of the urgently needed high-performance infrastructure. For these reasons, the EU directive (“Telecommunications Code”) on which the draft law is based only provides for universal service as a last resort (“ultima ratio”) and we should treat it as such. Self-economic expansion, flanked by a prudent incentive and funding policy, will get us there faster than any expansion obligation.”

BREKO believes that the draft law contains good approaches to speed up the often lengthy approval procedures. In addition to facilitating the use of alternative installation methods, which will hopefully lead to even greater local acceptance, the establishment of a “one-stop store” is planned. Stephan Albers: “The establishment of a coordinating body at the level of the districts or independent cities in the sense of an ‘advocate for fiber optic expansion’ would be helpful for the expanding companies in many respects. As an intermediary between the authorities and companies involved in the approval process, it could help to remove obstacles as quickly as possible. This would have considerable positive effects on the acceleration of fiber optic expansion. The planned introduction of a general three-month deadline for all necessary approvals is another important factor. By making it easier for companies to plan, this would lead to more efficient utilization of scarce civil engineering resources.