Access regulation: Federal Network Agency presents draft

The German Federal Network Agency (BNetzA) has presented a revised draft on the framework conditions for access to Deutsche Telekom’s local loops (local loops). The draft from October of this year stipulates that access to Deutsche Telekom’s fiber optic network – in contrast to the copper network – is not to be regulated ex-ante. The BNetzA therefore no longer wants to regulate the new fiber optic networks with the same intensity as Deutsche Telekom’s existing copper networks. The fees to be paid to Telekom by third-party telecommunications providers for the use of the fiber optic network will only be reviewed in the event of anomalies. With this relaxation of the regulation of the last mile, the Bonn regulatory authority wants to provide an incentive signal to motivate Telekom and its competitors to significantly increase investments in fiber optics. Non-discriminatory access to Telekom’s fiber optic networks is to be secured through an obligation of equal treatment in accordance with the EoI (Equivalence of Input) principle. The new approach essentially provides for other companies to be granted access under the same system and process conditions as those available to Telekom itself. In addition, fiber optic expansion is to be promoted to the greatest possible extent. To this end, the draft regulation provides for extended empty conduit access. However, the fees for empty conduit access are to be subject to approval as before. In contrast, no fundamental changes are planned with regard to the regulation of copper networks. The only new aspect in this context is Telekom’s obligation to provide timely notification of a migration to fiber optic networks associated with the dismantling of copper infrastructure and to submit corresponding migration plans. All information on the draft decision as well as the comments of competitors in the course of the completed consultation procedure are published on the website of the Federal Network Agency.