The investigation by the EC follows a call from a wide range of operators and industry groups for the Commission to block the German regulator's proposal. Alternative operators claim that BnetzA's decision would effectively re-instate DT's monopoly, while also favouring short-term gains in broadband coverage over longer term investment in fibre.
BNetzA's draft plan would lead to broadband speed gains in parts of Germany (of the 6 million households affected by DT's upgrade plans, approximately 1.4 million would receive speeds above 50 Mbps for the first time). DT could install the vectoring technology at more than 90 percent of the 6 million households in question.
The main alternative method through which competitors could gain access to the last mile, a Layer-2 Bitstream product at around 900 broadband network gateways in Germany, is in BNetzA's own view not yet a functional equivalent to physical unbundling, due to technical restrictions in the product design. This would deny DT's competitors the degree of control needed to differentiate their retail offers and enhance consumer choice, the EC noted.
The other option, a higher-specification virtual unbundling product at affected street cabinets, would place physical and economic limitations on access by alternative operators, which are likely to weaken competitive pressure in the short term, according to the Commission.
The EC said it will focus on whether other solutions can be found, which are better suited to safeguarding competition and future investment while still allowing for speed-enhancing network upgrades. The Commission now has three months to discuss the case with BNetzA, in cooperation with the body of European regulators (Berec). At the end of the period, the Commission can either withdraw its reservations or issue an Article 7a Recommendation, which will require BNetzA to amend or withdraw the draft regulation.
