Germany: Industry pact to speed up fiber optic network expansion

An alliance of German municipal utilities and regional telecommunications providers has proposed a voluntary "Fairplay-Agreement" to accelerate the rollout of high-speed internet and mobile networks. The initiative, backed by the three major associations BDEW, Breko, and VKU, aims to prevent new government regulations by fostering cooperation.

The core of the agreement focuses on "Open Access," encouraging companies to share their networks. Currently, the widespread adoption of fiber optics is often hindered by a lack of network sharing or by competitors duplicating infrastructure by laying new cables parallel to existing ones. The proposed pact would obligate fixed-line providers to grant competitors fair access to their fiber optic lines.

In return, the providers are asking major mobile network operators to open their masts and 5G networks to other providers. This would enable seamless bundled offers combining fixed-line and mobile services. The industry groups are reacting to plans by the German federal government to introduce stricter regulations on network access through legislation.

While the market leader Deutsche Telekom is not explicitly named, it is considered the main target of the agreement. Regional operators want to prevent Telekom from duplicating infrastructure in areas already served and, in turn, demand fair access to Telekom's mobile network. Deutsche Telekom consistently denies accusations of targeted or unfair duplicate build-outs, asserting that free competition and self-funded network expansion ultimately provide customers with the best infrastructure and provider choices.

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Open Access