Dispute over dependencies: Telekom joins competitors' association for first time

Signal of relaxation in the fiercely contested broadband market or hostile takeover? Under the motto "Strong together for fiber optics", Deutsche Telekom has joined the Federal Association of Fiber Optic Connections (Buglas). This is unusual, as the Buglas has so far mainly represented Telekom competitors such as Deutsche GigaNetz, GVG Glasfaser, Tele Columbus, UGG, Wilhelm.tel, Willy.tel and many municipal utilities. This is also the first time that Telekom has joined a telecommunications association. However, both sides are "united by the long-term investment horizon for fiber optic expansion," said Srini Gopalan, the Telekom board member responsible for business in Germany, explaining the move. The aim is to further intensify the alliance with regional providers and enter into even more cooperation agreements for Fibre to the Home (FTTH) "for future-proof digitalization".

Gopalan emphasized that Telekom is focusing on open networks based on open access, which offer all customers a wide range of providers. In all areas jointly developed with Buglas companies, competition takes place on the respective line according to this principle. This means that "network partners" such as O2, Vodafone, 1&1 or regional providers can use these lines without discrimination. However, many Telekom challengers are also complaining about increasing duplication of expansion by Telekom. Buglas President Theo Weirich assured them: "Cooperation with regional providers has been an essential part of Telekom's expansion strategy for years." Both parties benefit from this if the now intensified cooperation "takes place on an equal footing".

Broadband alliance: Buglas gives up its identity

Patrick Helmes, Vice President of Buglas, which has around 170 members, and Managing Director of Glasfaser Ruhr, spoke of an "important signal for the entire industry". The aim is to connect Germany with the latest FTTH technology as quickly as possible. The subsidiary of Stadtwerke Bochum has already been working closely with Telekom for two years in an expansion cooperation, from which many citizens in the Pott have benefited. However, Buglas also has to cope with a loss: The operators M-net from Munich and Netcologne announced in February that they would be leaving the association, on whose board they had previously sat, at the end of the year. They then turned to the cable and digital association Anga, having previously campaigned in vain for a merger of the two industry associations.

The Bundesverband Breitbandkommunikation (Breko), which has often fought side by side with Buglas for the common cause, is very disappointed by the announcement: "With the admission of the former monopolist, Buglas is giving up its identity as a representative of competitors' interests in fiber optic expansion and is becoming the German Telecom Association," fears Breko Managing Director Stephan Albers. Following the withdrawal of its largest members, the Buglas would become "dependent on the market-dominating company". As a result, it would lose the opportunity to "help shape the telecommunications market in the interests of competitors" –, for example with regard to the shutdown of copper-based DSL networks, Telekom's dual fiber optic expansion or the reintroduction of a service provider obligation. A number of the more than 500 members of Breko also cooperate with Telekom. But they can count on a strong association at their side "that is committed to fair open access and genuine competition".

(mma)