2015 Telecommunications Sector Report
In its special report entitled ‘Telecommunications 2015: Markets in Transition’, the Monopolies Commission gives a largely positive assessment of the work carried out by the Federal Network Agency. Unlike the Agency, the Monopolies Commission considers operator (pre)selection to be unnecessary and reiterates its call to abandon the regulation of subscriber lines in the fixed-line sector. Regulation of the vast majority of wholesale services remains essential, as competitors’ offerings are largely based on access to the dominant operator’s infrastructure. For the first time, the authority has defined geographically distinct regional markets for bitstream access. This makes it possible to take greater account of regional differences in competitive developments than before and to dismantle regulation where it has become superfluous.
Vectoring technology is of great importance for the rapid and comprehensive roll-out of high-performance broadband networks. The Monopolies Commission advocates allowing all companies wishing to expand their networks to use this technology, even in the immediate vicinity of main distribution frames. However, the draft regulatory order currently submitted by the Federal Network Agency sets high barriers to competitors’ participation.
There is a fear that – unlike in the case of the first vectoring decision in 2013 – the Federal Network Agency will not succeed in preventing Deutsche Telekom from maintaining its technological monopoly on the so-called ‘last mile’ in the vicinity of the main distribution frames.
