Copper phase-out: Austria's regulator hopes for coop with network operators

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The EU Commission wants the last copper-based telecom networks to be switched off by 2030 at the latest. This deadline is "very challenging to say the least", says Klaus Steinmaurer, Managing Director of Telecommunications and Post at the Austrian regulatory authority RTR. The situation in Austria is simply different to that in Spain or Romania. Comparing them with Austria is naive. "If we really step on the gas, 2035 is a really ambitious target with an assumed 80 to 90 percent copper switch-off. I consider one hundred percent by 2040 to be feasible."

In May, RTR (Austrian Regulatory Authority for Broadcasting and Telecommunications) organized a workshop on the topic of copper switch-off for selected network operators. Steinmaurer is thus trying to prepare for an enormous balancing act: The switch to copper should take place cooperatively, without overbuilding on fiber optics; at the same time, wholesale offers should be attractive and competition in the market should not suffer. Fiber optics should be rolled out nationwide, to the benefit of both customers and providers. The latter should not think in terms of short-term business cases, but should pursue long-term goals.

The lawyer also finds critical words: "The EU talks very generically about copper switch-off without going into more detail about what exactly it means by this. An explanation of why this is important has also not yet been presented in very concrete terms." The Austrian grid operators should therefore jointly define the why and the what. For example, it needs to be clarified whether it is about fiber to the living room (Fibre to the Home, FTTH), to the basement of apartment buildings (Fibre to the Basement, FTTB), or only to the cable cabinet in the respective street (Fibre to the Cabinet, FTTC). The question of whether only the classic copper pair or also coaxial TV cables will be used has not yet been answered.

The Austrian industry should therefore agree on this before agreeing on how and when, i.e. a timetable. "Either we wait for the legislator and try to lobby individual interests as much as possible, or we choose a form of cooperation in which those affected retain the power to shape the process," says Steinmaurer, presenting the network operators with a choice. He "would prefer the second option."

Squaring the circle together

"Every market participant is called upon to make a contribution here. That's the difference to previous telecom regulation, where there was the monopolist and the rest, so to speak", says the head of the authority, outlining new approaches – to regulation as well as the necessary investments: It is necessary "to consider how it is possible to properly sanction anti-competitive behavior in order to also create an incentive for cooperation. An important incentive should also be that shared investments can also achieve more in the area with positive effects for everyone." After all, copper networks can only disappear if fiber optics are available throughout the country.

Four working groups have now emerged from the workshop, in which representatives of the invited network operators will deal with topics such as processes and procedures, legal requirements and communication with the public. heise online has also heard critical voices in the industry: Apparently not all network operators who would like to participate were invited.

"TV cable will run for even longer"

Of course, Steinmaurer also has his own ideas on the subject. In an interview with heise online, it became clear that he assumes that the copper phase-out is about FTTB, not necessarily FTTH. "Backhaul and backbone need fiber optics," said Steinmaurer. In Austria, he believes that this can be achieved by around 80 percent by 2035 and "possibly one hundred percent" by 2040. He is only referring to the classic copper pairs. "Coax will take even longer", he says, adding that he expects TV cable to still have a long runtime.

Austrian customers are spoiled. Today, consumers often get better performance from mobile networks than from TV cable and DSL at comparable prices. Steinmaurer is also aware of this. He emphasizes the long-term perspective: "The next 50 to 100 years." He can only imagine digital sovereignty and quantum computing in the long term with fiber optics. "Quantum computing can only develop its full power if the quantum computers work together internationally." And even with earlier network upgrades, the further development was not clear: "With 3G, nobody knew what the breakthrough would be. We talked about video telephony, but the breakthrough was mobile internet with smartphones."

When making comparisons with other countries, Steinmaurer warns heise online to be careful: "Romania is one of the top countries (in the fiber optic statistics). There was hardly any copper network there. Now the fiber optic expansion is there, but not necessarily secure. Cables hang over cycle paths. There's cheap expansion with poorer standards, but it doesn't last as long."