Competitors: Regulator must take action against Telekom's double expansion

Deutsche Telekom is abusing its market position by building over the fiber optic networks of others, complain competitors – and see it as the regulator's turn.

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Large rolls of orange fiber optic cable for laying in the ground at a construction site in Beber, Lower Saxony.

(Image: juerginho/Shutterstock.com)

2 min. read

The industry associations Breko and VATM are increasing the pressure on the Federal Network Agency to take action against Deutsche Telekom's alleged cherry-picking in network expansion. They have called on the regulatory authority to formally investigate relevant cases and to take "effective measures against the abuse of market power" by Deutsche Telekom. The Federal Network Agency should no longer simply observe their behavior and effectively protect the interests of the former monopolist by waiting and seeing. The far too long laissez-faire has already "caused considerable damage to Germany as an investment location and to the expansion of fiber optics".

The constant stumbling block: the double fiber optic roll-out. In a report published in April, the regulator found signs of concentration on "lucrative core areas" in just over half of the "Telekom cases" examined, in which the Bonn-based company was added as a second company. Moreover, in more than 50 percent of such expansion announcements, Telekom reacted quickly to corresponding plans by competitors. However, according to the regulator, it is not yet possible to assess the extent to which the top dog is actually abusing its market position in order to deliberately squeeze out competitors who are expanding for the first time.

However, Breko and VATM already see Telekom's proven behavior as a violation of Section 50 of the German Telecommunications Act (TKG). The Federal Network Agency is already obliged to initiate an investigation procedure immediately if there is an initial suspicion. The indications of relevant misconduct on the part of Telekom and the associated potential for crowding out have existed for almost a year. Should the regulator continue to remain inactive, the associations are threatening to lodge a complaint with the EU Commission.

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"Just because someone doesn't like it doesn't mean it's illegal," said the President of the Federal Network Agency, Klaus MĂĽller, in November. It had not yet become clear whether there was an "abusive or strategic superstructure". Telekom dismisses the recurring accusations as unfounded: the company is simply laying fast Internet lines and is also taking care of real problems such as the complex fiber optic supply within buildings.

(vbr)

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This article was originally published in German. It was translated with technical assistance and editorially reviewed before publication.