15 Okt Switching from copper to optical fibre the right way – VATM presents position paper for future-proof migration process
Berlin, 15.10.2024. One of the biggest challenges for the telecommunications sector in the coming years will be shutting down the outdated copper network and transitioning to high-performance fiber glass infrastructure. „We are facing a unique opportunity opportunity to finally create more genuine competition in the telecommunications market,“ emphasizes Dr. Frederic Ufer, Managing Director of VATM. „This will bring significant benefits to all the customers. In total, we are talking about 24 million copper-based connections that need to migrate to optical fibre infrastructure.“
In a detailed position paper, the association has outlined key guidelines for a successful and future-proof migration process. „As the only association representing both network builders and access seekers, VATM emphasizes that it is essential for both market players that the framework conditions for a successful migration are defined promptly and with binding clarity,“ explained the managing director. In this highly sensitive market phase, planning security along with a competitive concept, is crucial. „The Federal Network Agency must establish the fundamental rules of a migration concept very soon, even though rollout and migration will still take several years,“ said Ufer. „However, we are currently witnessing Telekom’s attempts to use its still-dominant market position to to cement and significantly expand its dominance in the fiber-glass sector, which harms businesses as well as citizens who rely on fast internet connections.“ Policymakers and regulators must keep a close eye on this threatening development for competition and act early to prevent anti-competitive strategies.
The key objectives of the migration process therefore included:
- Maximum transparency in Telekom’s plans to switch off the copper network.
- Clear qualitative advantages for private and business customers, ensuring a smooth transition during the copper networks shutdown.
- Fair, non-discriminatory conditions for wholesale access seekers, allowing all services relevant to both private and business customers to be provided at the highest quality level and economically replicable.
- Non-discriminatory copper network shutdown even after the expansion of alternative fiber-glass networks.
„For all market participants, as well as for citizens and businesses, the goal is to create a secure ‘runway’ that can be planned with sufficient lead time,“ explains the managing director. He emphasizes, that a key factor that a key factor for the success of the migration is ensuring regulation of the market-dominant company, even during the transition period.
One of the main challenges is the issue surrounding § 34 of the Telecommunications Act (TKG), which only specifies the circumstances under which Telekom is allowed to shut down its old copper network,” emphasizes Ufer. He also points out that even though there are no specific legal requirements, the Federal Network Agency (BNetzA) is already obligated and able to regulate the shutdown of the copper network under the current TKG in a non-discriminatory manner, also for third-party fiber-glass networks. For this, a viable regulatory concept must be developed together with the industry.
„All fiber optical expansion companies, service providers requesting access, as well as policymakers and regulators, must now work together to make the most of this migration as an opportunity,” appeals the managing director. Telekom must also contribute its share for the benefit of Germany, and abandon strategic overbuilding as well as systematic competition suppression, or be made to do so. „The VATM member companies are committed to ensuring that provider choice, access and service diversity, as well as competitive pricing structures, remain in Germany, and that the transition throughout the entire migration phase can be as successful as possible for customers.“
You can find the position paper on the VATM homepage: 2024-09-30_VATM_Position_Kupfer-Glas-Migration_final.pdf
