Digital Minister: Copper network to be switched off in some areas

Contents

On Thursday, the Federal Ministry for Digital and State Modernisation (BMDS) published key points for an "overall concept for copper-glass migration" and put them out for consultation. With this paper, department head Karsten Wildberger (CDU) wants to set the direction for one of the largest infrastructure projects of the coming years: the complete conversion from conventional copper-based broadband networks (DSL) to high-performance fibre optic infrastructures in the form of fibre to the home (FTTH).

The main aim of the initiative is to accelerate the expansion of fibre optics in Germany and create planning security for all market participants. This should ultimately lead to a regional switch-off of the old copper network. There will therefore be no fixed nationwide switch-off date.

The BMDS considers the migration from copper to fibre optics to be urgently necessary. According to the BMDS, fibre optic networks are considered crucial for Germany's competitiveness and are significantly more energy-efficient compared to VDSL, cable networks and mobile communications, for example.

Forced switchover as a last resort

According to current estimates by the consulting firm WIK Consult, the complete shutdown of the copper network would not begin until 2028 at the earliest under the current framework conditions in Germany and would only be completed between 2035 and 2040. This is mainly since the network operators' business interests take centre stage and there are no incentives for a rapid switchover.

The BMDS would like to accelerate this process. It is planning to introduce timelines and regulatory measures to accelerate the process. According to the paper, the first and decisive phase is voluntary migration. This involves end customers switching to a fibre optic connection of their accord as soon as it becomes available. The more and faster the copper networks are "emptied" as a result, the more likely it is that they will be switched off for economic reasons, writes the BMDS. The forced migration is only the last step for the remaining connections.

To control and accelerate the switch-off process, the ministry is examining the specification of a clear time limit: the switch-off of an area should take place no later than three years after the nationwide availability of FTTH networks. This rule should apply to the entire federal territory and thus define the framework for the necessary area-by-area, non-discriminatory switch-off.

Supply should be guaranteed

The BMDS sees migration in line with competition as a key challenge. There is a risk that Deutsche Telekom, as the owner of the regulated copper network, will selectively apply for switch-off only in its own fibre optic expansion areas, while continuing to operate the copper network in expansion areas of competitors. The ministry is therefore considering expanding the competences of the Federal Network Agency so that it can take appropriate account of Telekom's switch-off practice in regions with competition.

To create planning and investment security for all market participants, the ex-monopolist is to be obliged to submit a comprehensive migration plan to the regulatory authority. At present, the decision on where and when to switch off is the sole responsibility of Telekom, which leads to information asymmetries and barriers to investment.

The ministry emphasises that uninterrupted supply to end customers at reasonable prices must be ensured throughout the entire migration process. In the event of a switch-off, those affected should be able to switch to an alternative communications infrastructure that guarantees at least the same quality of service.

Competitors react positively

"Together with the players on the market, we want to create optimal framework conditions for the transition to a nationwide fibre optic network," said Wildberger, explaining the move. The aim is to convince citizens of the benefits and offer FTTH at attractive prices. At the same time, it is important to avoid "double costs for the parallel operation of old and new networks" in the interests of consumers. Interested parties have until 14 November to submit their comments.

Competitors have long been calling for a plan for a future-proof and smooth copper-glass migration. They welcome Wildberger's initiative. The German Broadband Association (Breko) speaks of an "important signal for further billion-euro investments in fibre optic expansion". The companies involved urgently need fair conditions for this, which Wildberger's balanced concept should ensure.

The industry association VATM sees this as a "decisive opportunity for more competition, transparency and planning security in the German fibre optic market". However, the Federal Network Agency must utilise its control and intervention rights. Obstacles in the Telecommunications Act should also be consistently removed.

Telekom warned in the debate that a "forced change of provider" was imminent if the old line technology was abandoned. The Federal Network Agency promised to develop a concept for the switchover together with the BMDS. However, it then put the brakes on the expectations of the alternative network operators.
(wpl)