EU: Deutsche Telekom broadband probe launched by Brussels

The European Commission has opened an in-depth investigation into Germany’s approval of Deutsche Telekom’s plan to use its existing copper wiring to connect homes and offices up to its high speed fiber optic broadband network because it could harm competition.

Germany’s telecoms industry regulator BNetzA approved in November Deutsche Telekom’s plan to use vectoring technology to double the bandwidth of the existing copper lines running from a fiber-connected central distribution point to give download speeds of up to 100 Mbps instead of running fiber all the way into homes and offices – known as ‘fiber to the premises’.

However that caused an outcry from competitors, such as Vodafone, who argued that the plan would harm competition.

Vectoring technology only works when applied to a whole bundle of copper cables, meaning individual lines cannot be physically unbundled to give access to alternative operators.

Rivals would get “virtual” access to the copper ‘local loop’ network, but the Commission said this arrangement would deny the degree of control necessary to differentiate their retail offers from those of Deutsche Telekom.

The Commission said that the plan appeared to have a “considerably restricting effect on alternative operators who buy access from Deutsche Telekom” and would discuss it with the German regulator over the next three months.

If no solution is found at the end of that period the Commission could ask the German regulator to withdraw or amend its decision.

“Our aim is to allow both a network upgrade and high quality access for competitors,” said Guenther Oettinger, the EU’s commissioner for telecoms

Full Content: Financial Times

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