New Telecommunications Act passed: TKG amendment enters into force

After the Bundestag passed the reform of the Telecommunications Act (TKG) on April 22, 2021, the amendment to the TKG has now also passed the Bundesrat on May 7, 2021. This means that the Act Implementing Directive (EU) 2018/1972 of the European Parliament and of the Council of 11 December 2018 on the European Electronic Communications Code (recast) and Modernizing Telecommunications Law (Telecommunications Modernization Act) can enter into force in large parts on 1 December 2021 after being signed by the Federal President. Key points of the law, which is over one hundred pages long, include the creation of a legal entitlement to fast internet access as well as the redesign of an exclusive ancillary cost privilege for fast fiber optic access in rented apartments. New consumer law framework conditions on contract terms and minimum quality parameters for telecommunications products are also regulated in the law. For the first time, binding requirements for the expansion of mobile networks have also been laid down.

The amendment to the Telecommunications Act transposes the European Directive on the European Electronic Communications Code of December 20, 2018 into German legislation. Originally, the requirements set out therein were to have been transposed into national law within two years by the end of 2020. At the core of the canon of measures, this primarily concerns the implementation of the universal service requirement, which is intended to give all consumers the right to fast internet. All citizens should thus be entitled to internet access that is configured in such a way that all services and applications for digital participation, including the use of teleworking services, are functionally usable. The minimum bandwidth used by at least 80% of consumers in Germany will be used as the basis for determining the required bandwidth for downloading and uploading. The latency of the connection will also be included in the minimum quality of access. As part of a separate survey, the Federal Network Agency will determine the key performance parameters for the universal connection as the basis for a further statutory order. The parameters recorded in this process will subsequently have to be continuously adapted to technological developments and changing usage scenarios at fixed intervals.

The amended TKG also provides for a comprehensive reduction in regulatory and legal barriers to the expansion of wired and mobile telecommunications networks. Approval procedures for the expansion of broadband networks are to be simplified and shortened. In future, shallow installations, e.g. through trenching, will be permitted without prior application and will only require notification of the chosen installation depth and route by the telecommunications company to the responsible infrastructure manager. In the field of mobile communications, an expansion target has also been formulated by law for the first time. This provides for uninterrupted LTE coverage on federal, rural and district roads as well as on all railway lines by 2026. Furthermore, in regions with insufficient coverage, the Federal Network Agency will be able to oblige providers to share passive and active infrastructure or use local roaming.

Further changes to the TKG concern the costs for TV cable connections. In the past, tenants often had to pay for the TV cable connection as part of their ancillary costs if the landlord had concluded a supply contract with the local cable provider. After a transitional period until 2024, such contracts will no longer be able to be passed on to the ancillary costs. The only exception will be that in future, when laying new fiber optic infrastructure within buildings, this can be included in the ancillary rental costs as a “provision fee” of EUR 5 per month with a maximum allocation period of five years. This levy is intended to create incentives for the expansion of FTTH infrastructure. The revised Telecommunications Act also provides for further adjustments in favor of consumers with regard to contract terms in mobile communications and the fixed network. In future, contracts can be terminated at any time with one month’s notice after the minimum term has expired. It will also be easier for the end customer to assert claims against the service debtor in the event of underperformance of the booked telecommunications connection.