11 Feb. Joint press release from the associations BREKO and VATM
Strategic overbuild of Telekom: BREKO and VATM demand a formal investigation by the Federal Network Agency and effective measures against market power abuse
Bonn, 30.01.2025. Telekom continues to exploit its dominant market position by strategically overbuilding the competitors’ fibre networks, causing severe competitive harm. The industry associations BREKO and VATM call on the Federal Network Agency (BNetzA) to take immediate action against this abusive conduct by a company holding significant market power.
As early as April last year, BNetzA’s monitoring office of found in its interim report that Telekom had deliberately targeted only the most profitable core areas in more than half of the overbuild cases reported by competitors. The report also confirmed that Telekom reacted to competitors’ deployment plans in over 50 percent of these cases. Telekom’ objective was clear: to deter strong competitors from expanding their networks and ultimately squeeze them out of the market. However, this strategy undermines the urgent need for a fast and nationwide fibre rollout, recognized as both a national and European priority, which requires a high pace and level of investment that can only be achieved through collaborative efforts of all market participants.
The two industry associations consider the Telekom’s strategic overbuild a clear abuse of market power and, therefore, a violation of § 50 of the Telecommunications Act (TKG). Under § 50 (3) TKG, even the mere suspicion of strategic behaviour constitutes sufficient legal grounds for BNetA to initiate an investigation without delay.
For nearly a year, clear evidence of Telekom’s anti-competitive practices has been available, highlighting its deviation from standard competitive behaviour and the growing risk of market foreclosure. Yet, little has been done to address the issue. BNetzA can no longer passively observe Telekom’s conduct, effectively shielding the interests of the former monopoly through inaction. Delays in regulatory intervention have already inflicted serious damage on Germany’s investment climate and the fibre rollout.
An immediate formal investigation and enforceable corrective measures are urgently required to curb this behaviour. The companies affected by Telekom’s strategic overbuild, along with their industry associations, stand ready to support BNetzA in conducting a thorough investigation and ensuring fair competition in the fibre market.
Press contacts:
BREKO German Broadband Association e. V.,
Menuhinstraße 6, 53113 Bonn
Tel.: 030 / 58580-416, E-Mail: presse@brekoverband.de
VATM Association of Telecommunications and Value-Added Service Providers e. V.,
Frankenwerft 35, 50667 Cologne
Tel.: 0221 / 376 77-18, E-Mail: ms@vatm.de
