Fast fiber optic and mobile expansion needs strong and fair competition

Berlin, 13.12.2023 – Under the title “Achieving gigabit targets through competition!”, the Monopolies Commission today presented its 13th Telecommunications Sector Report.

BREKO Managing Director Dr. Stephan Albers comments:

“The pace of fiber optic expansion in Germany has never been so fast. Fiber optic availability currently stands at 35%. The main drivers are Deutsche Telekom’s competitors, who are responsible for around two thirds of the expansion. The large number of these alternative network operators has led to active competition and a high level of dynamism in the supply of fiber optic connections. This is the only way to keep the German government’s goal of nationwide fiber optic coverage by 2030 within sight.

This goal is in acute danger, particularly as a result of Telekom’s strategic dual expansion. BREKO welcomes the fact that the Monopolies Commission is in favor of fair competition in fiber-optic expansion and is calling for a rapid conclusion to the evaluation of the dual expansion carried out by the Federal Network Agency. In order to prevent strategic overbuilding activities, which the Monopolies Commission also considers to be harmful to competition, BREKO demands that Telekom, as a market-dominant company, must enter its fiber-optic expansion plans in a non-public list with a lead time of nine months. This will prevent it from reacting to competitors’ expansion plans at short notice and jeopardizing or even preventing their projects.

It is positive that the Monopolies Commission considers freely negotiated open network access to be an important instrument for more competition and more speed in expansion: With voluntary, open and non-discriminatory network access, providers generate faster cash flow and can invest more quickly; customers can provide their customers with high-quality telecommunications services on a large scale.

BREKO welcomes the Monopolies Commission’s clear call for more competition in the mobile communications market by imposing an obligation on the three incumbent mobile network operators to allow independent competitors non-discriminatory access to the networks. In order to sustainably strengthen competition in mobile communications and increase the variety of offers, the legally secure imposition of an effective service provider obligation is absolutely essential. The current obligation to negotiate has proven to be completely ineffective, as demonstrated by the dominance of the three established network operators in the 5G market. The Federal Network Agency should not let this opportunity to effectively counter the structural market failure on the German mobile telecommunications market pass by.”