Deutsche Telekom, industry groups criticize EU approval of Vodafone takeover of Liberty Global assets

News General Germany 19 JUL 2019
Deutsche Telekom, industry groups criticize EU approval of Vodafone takeover of Liberty Global assets
The German association of alternative operators Breko, the Federal Association of Fibre Optic Access (Buglas), the association of small cable operators in Germany (FRK) and Deutsche Telekom have criticized the decision of the EU Commission to approve the takeover of Liberty Global's cable operations in Germany, Hungary, Czech Republic and Romania by Vodafone. 

The merger will lead to a considerable restriction of the competition and it has a negative impact on people and companies, according to Breko. Opening the Vodafone cable networks through an "exclusive deal" does not address the negative effects on the cable market by the takeover. Significant are the negative effects on the telecommunications market  and in particular on the expansion of fibre connections (FTTB/FTTH) in Germany.  

For Buglas, the takeover will make it difficult in particular the expansion of fibre to the buildings connections. Small competitors cannot replicable the offering of Internet, telephony, TV and mobile of the new company, which will have an increased market power. The merger leads to a duopoly between Deutsche Telekom and Vodafone, warned Buglas in a statement. 

Deutsche Telekom, however, has also criticized the decision of the EU Commission. The approval of the merger under conditions shows that Vodafone achieves through the takeover a critical size, Telekom said in a statement. For Deutsche elekom, the merger will not lead to additional broadband connections, especially in rural areas, and the expansion of the fibre (FTTB / FTTH) becomes more difficult in Germany.  

For the association of small cable operators in Germany, FRK, the decision of the EU Commission is a “slap in the face” to small and middle-sized cable network operators, city carriers and middle-sized program providers. The duopoly of Vodafone and Telekom will threaten middle-sized companies through unfair competition. The opening of the Vodafone networks for only one competitor is a strategic manoeuvre against Telekom, FRK said in a statement.

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