Brussels, May 4, 2023 The German Broadband Association (BREKO) today reiterated its criticism of the draft Gigabit Infrastructure Act (GIA) at an event held jointly with the German Association of Energy and Water Industries (BDEW) in Brussels. The main point of criticism is that the GIA in its current form would slow down the expansion of fiber optics in Europe instead of accelerating it, because it favors the strategic overbuilding of fiber optic networks. BREKO is therefore calling on the European Parliament and the European Council to amend the draft and take into account the special features of the markets of individual member states.

At the event in the Brussels representative office of the state of Lower Saxony, Matthias Büning, Head of Legal and Regulation at EWE Tel, Marco Sick, Managing Director of Vattenfall Eurofiber, and Carlota Reyners Fontana, Head of Unit for Electronic Communications in the European Commission’s Directorate-General for Communications Networks, Content and Technologies, discussed the Commission’s current proposal as a follow-up to the EU Cost Reduction Directive from 2014.

Taking into account the special features of individual EU member states

BREKO believes that the current legal instrument of a regulation is neither appropriate nor balanced, as the expansion of digital infrastructures and the market situations in the member states differ considerably. A directive would offer more scope for measures that are adapted to the specific characteristics of the individual EU states. This is particularly important with regard to the German market, where alternative operators are responsible for 70% of fiber optic expansion.

Extended access to physical infrastructure

BREKO is particularly critical of the fact that the planned rules for physical infrastructure access (PIA) favor the strategic overbuilding of fiber optic networks. This would slow down network expansion, weaken competition and strengthen the market power of the former monopolists. PIA should only be granted in cases where no alternative types of access are offered in the region concerned. The list of possible grounds for refusal must include virtual access products such as bitstream access as an alternative type of access. “A restriction to physical access only benefits the companies with market power and counteracts the common practice of using virtual bitstream products as a central basis for cooperation between telecommunications companies,” emphasizes BREKO Managing Director Dr. Stephan Albers.

Coordination of civil engineering work

BREKO welcomes the fact that the obligation to coordinate civil engineering works is not extended to privately financed fiber optic projects. However, the fact that projects financed by utility companies with municipal participation are also exempt from this obligation should be defined more precisely in the GIA. In addition, BREKO calls for fiber optic networks to be generally excluded from the obligation to coordinate civil engineering works in order not to jeopardize the fastest possible nationwide expansion.

Excessive transparency obligations

The demand for the greatest possible transparency about digital infrastructures must not jeopardize infrastructure security. When introducing additional transparency obligations, European security standards must be upheld and access to the data must be restricted. In this context, BREKO also takes a critical view of the requirement to publish detailed information on planned civil engineering works. Instead of the hoped-for positive effects, this would considerably facilitate the strategic overbuilding of alternative fiber optic networks by companies with market power.

Progress in approval procedures

The proposed clear deadlines and the standardization and digital processing of approval procedures are important steps in the right direction. However, the deadlines should be shortened even more overall. Ultimately, the decisive factor for the accelerating effect is whether these measures are also implemented as quickly as possible at the municipal administration level. BREKO believes that Germany still has a lot of catching up to do here. “Digital administration in Germany only exists on colorful PowerPoint presentations,” says Albers, describing the need for action.

Fiber optics as the new standard at network level 4

Fiber optic infrastructure is to become the in-house standard for new and completely renovated buildings. This is particularly positive due to the focus on fiber optic technology – in contrast to the usual technology neutrality of the EU Commission. BREKO also proposes the introduction of a more detailed certificate for buildings, similar to the already mandatory energy certificates.

GIA must be improved

In its current version, BREKO believes that the GIA will not contribute to a faster expansion of fiber optic networks in the EU. “We appeal to the members of the European Parliament and the European Council to take a very close look at the regulations and make corrections so that the GIA does not become a threat to the expansion targets of the EU and the member states,” summarizes Albers.

All of BREKO’s proposed amendments to the GIA can be found in the position paper.