Consumer advocates: distribute costs for in-house fiber optic expansion fairly

The consultation period for the key points paper by Federal Digital Minister Karsten Wildberger (CDU) for a further amendment to the Telecommunications Act (TKG) runs until the weekend. However, the newcomer politician's proposals for the expansion of fiber optics and mobile communications have already sparked a heated debate. The German Federation of Consumer Organizations (vzbv) is now also taking a stand. Above all, it is demanding that connections with optical lines in apartment buildings should not be at the sole expense of tenants.

In its statement, the vzbv welcomes the general intention to introduce new instruments for the nationwide fiber optic supply planned for Germany by 2030. However, it emphasizes that the associated expenses must be distributed fairly among all stakeholders, especially including building owners. The consumer advocates reject Wildberger's proposal to increase the apportionable amount for fiber optic provision from EUR 540 to EUR 960: this would place a disproportionate burden on tenants.

The association argues that building owners would also benefit from an increase in the value of their property when fiber optics are installed. As the option to allocate costs is hardly ever used and its incentive effect has not been proven, it is campaigning for the provision fee to be removed without replacement.

Contested right to full expansion

The vzbv supports the proposal to grant telecommunications companies the right to the full expansion of an entire building as soon as an end customer contract has been concluded. This would significantly reduce the expansion effort and costs. However, it must be ensured that the company carrying out the expansion does not gain a monopoly position and that tenants remain free to choose their provider. The industry association VATM is also in principle in favor of a right to full expansion. However, the housing industry, together with the broadband association Anga, is protesting against this approach.

In order to promote competition, the vzbv is also in favor of a right to access to one free fiber optic line per residential unit as well as the right for competitors to share the use of existing infrastructure ("open access"). The abolition of the so-called group clause in the TKG should not lead to an additional financial burden for consumers. This legal standard regulates the access conditions for providers affiliated with a building owner under group law. It is intended to prevent these companies from abusing their considerable power over other providers seeking access to the network infrastructure in the building.

Competitors as main tenants or subtenants?

In general, it is clear from the submissions available so far as part of the consultation that most stakeholders believe the law needs to be simplified. However, the devil is in the details. The main point of contention is whether network operators should be forced to lay ducts or cables for several providers from the outset. An alternative being discussed is to allow competitors to use already laid lines only as "subtenants". Together with the VATM, the broadband association Breko argues that too lax regulation would lead to Deutsche Telekom exploiting its dominant position and squeezing out competition.

Deutsche Telekom itself rejects an obligation to lay passive infrastructure such as empty conduits for other providers when expanding homes with fiber optics. Such an obligation would curb the willingness to invest, as it would be inefficient and unprofitable. It would be sufficient to grant competitors access to existing lines under non-discriminatory conditions. According to Tagesspiegel Background, the digital association Bitkom complains that the plan could create additional bureaucracy. This would slow down the expansion, contrary to the actual goal. Another point of criticism: the planned expansion of the gigabit base directory into a central hub is likely to turn it into a "data octopus".

(mma)