Optical fibre expansion dispute resolved by Netzagentur, resulting in a doubling of capacity.
In the ongoing debate surrounding the expansion of fiber optic networks in Germany, Deutsche Telekom finds itself at the centre of accusations by its competitors. The allegations claim that the telecommunications giant is expanding or planning to expand fiber infrastructure in areas where other providers have already invested or have concrete plans, with the aim of undermining competitors' investments and securing market dominance. This practice, known as "overbuilding", could potentially deter other companies from investing due to uncertainty about their return on investment [1][3].
However, the Federal Network Agency (Regulatory Authority) has concluded that cases of empty or strategic expansion announcements are very rare. After reviewing 539 reported cases of duplicate fiber rollout, the agency found no justification for stronger market interventions currently and emphasized that overlapping infrastructure sometimes occurs in markets where only a single fiber network is economically viable [1][3]. The regulator will continue to investigate specific problematic cases if substantiated evidence emerges but has closed the general monitoring unit.
Deutsche Telekom welcomed the regulator’s decision, calling the dispute a "sham debate" initiated by competitors. Instead, the company is advocating for focus on speeding up approvals and home connectivity [3]. On the other hand, competitors and industry associations like Breko and VATM criticized the Federal Network Agency for not adequately addressing clear anomalies in Telekom's expansion behavior and demanded more rigorous scrutiny and confidential sharing of expansion plans by Telekom to ensure fair competition [3].
The dispute reflects broader challenges in Germany’s fiber rollout, where fiber deployment remains slow, especially outside urban areas. Some operators like 1&1 and Deutsche Glasfaser have joined forces to expand fiber in rural regions [2][4]. The regulatory balance aims to foster competition without creating inefficient duplication of costly infrastructure in areas where one provider’s rollout is economically feasible [3].
| Stakeholder | Position on the Dispute | |---------------------------|--------------------------------------------------------------| | Competitors (e.g., Breko, VATM) | Accuse Telekom of strategic overbuilding to suppress competition; want regulator to enforce stricter scrutiny and transparency | | Federal Network Agency | Found insufficient evidence of abusive overbuilding; closed monitoring but remains open to investigating substantiated cases | | Deutsche Telekom | Denies strategic misconduct; sees dispute as unfounded; calls for focus on infrastructure expansion and regulatory facilitation |
Breko and VATM have appealed to Federal Digital Minister Karsten Wildberger to ensure fair framework conditions for a swift digitalization with a powerful digital infrastructure [3]. The controversy surrounding Deutsche Telekom's competitive behavior in fiber optic network expansion in Germany continues to be a topic of interest and debate.
- The industry associations like Breko and VATM, along with competitors, are advocating for stricter scrutiny and transparency in Deutsche Telekom's expansion plans in the finance sector, as they believe the telecommunications giant is utilizing strategic overbuilding to maintain market dominance in technology.
- In response to allegations of overbuilding by competitors, Deutsche Telekom is calling for a focus on speeding up approvals and home connectivity within the industry, as part of a broader effort to digitalize Germany with a powerful digital infrastructure.
