Deutsche Telekom’s offer to invest 2 billion euros in broadband f...
Deutsche Telekom’s offer to invest 2 billion euros in broadband for unserved rural areas in exchange for a regulatory break is “dangerous,” rival providers said Tuesday. The proposed deal comes ahead of various EU and German state and federal…
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elections next year and aims to push out of the market alternative, tailor-made solutions for broadband in rural areas, such as wireless broadband, telecommunications attorney Axel Spies said for the German Competitive Carrier’s Association. Germany doesn’t have a universal service fund, and DT has argued for years that it’s uneconomic to bring broadband to rural parts of the country, he said. Now the incumbent has reversed course, saying it will do that if it receives a “regulatory holiday” from the government, Spies said. The associations believes that competition is necessary to close the broadband gaps, to avoid giving DT back its monopoly, he said. To make matters worse, Spies said, DT wants higher local loop rates in Germany and wants regulator BNetzA to freeze them for 10 years. If approved, DT’s proposal would set back market liberalization and could make rivals’ 40 billion euros worth of investment partly or entirely worthless, he said. This isn’t the first time DT has sought regulatory relief. Its proposal to deploy VDSL in return for deregulation remains tied up in court after the European Commission expressed opposition, Spies said.