Regulator's decision: Much criticism of empty conduit rental prices for Telekom

The Federal Network Agency's decision on the fees for the shared use of empty conduits and other Telekom construction facilities by competitors is causing offense to the latter for various reasons. Frederic Ufer, Managing Director of the competitors' association VATM, for example, complains that the regulatory authority is "playing at risk". Once again, it could be the challengers to the top dog who suffer. It is completely unclear whether the path chosen by the network agency will "achieve the desired acceleration effects for the expansion of fiber optics". The EU Commission also pointed this out during the consultation on the regulator's original draft. It had warned against "unjustified overcompensation of Telekom" and negative effects on the laying of superfast Internet lines.

The Network Agency's decision concerns the rental prices that competitors have to pay if they use cable duct systems and above-ground carrier systems of the Magenta Group between distribution boxes and individual houses. For the most part, the regulator stuck to the specifications from its draft from April, with which, according to its own statements, it wanted to significantly reduce some of the fees brought into play by Telekom. However, a few items have finally become somewhat more expensive for competitors.

"Fair duct fees are a must, especially at this sensitive time for fiber optic expansion," explained Ufer. Otherwise, no competitive market structures could develop for companies and service providers expanding the network. The opening of the huge empty conduit network "of Telekom, which dominates the broadband market" has been overdue for many years. France had already made this infrastructure accessible to the challengers of the old monopolist there in 2008, Spain and Portugal in 2009, and these countries are known to have a big head start in fiber optics. The British regulatory authority also recently announced that empty conduit access is being heavily used there.

"Fat brake blocks" for the expansion of fiber optics

According to the VATM, there is still no corresponding standard offer from Telekom in Germany, "which contains the commercial details and still has to be approved by the Federal Network Agency". It is therefore unlikely that access will be finally usable before 2025.

In general, according to the association, the industry is currently experiencing a renewed increase in Telekom's market power in the private and business customer market. Ufer criticizes: "Wherever possible, it refuses the necessary cooperation on competitors' fibre optic infrastructures and instead overbuilds with the intention" of forcing competitors to give up. This stance against open access and the "regulation light" practiced by the network agency for two years are "fat brake blocks" and "poison for the investment climate".

The Federal Association for Broadband Communication (Breko), on the other hand, recalled that it had "spoken out against regulated empty conduit access from the outset". The alternative network operators in the association rely on the free market. According to them, the most important thing now is that the Network Agency's decision should not result in a common "market price" that can be applied to other cases. Such a de facto standard "would be very detrimental to investments in new fibre optic networks by competitors", which could not be amortized based on the regulated fees. When setting prices for the top dog, its special market position, the proportion of depreciated existing infrastructure, the considerable scaling advantages and the regulatory ties of a dominant company would have played a significant role. This approach is not generally transferable.

(vza)