Brussels, 10/05/2016 (Agence Europe) - Concerns expressed by several German MEPs about Deutsche Telekom's use of vectoring technology are being borne out (see EUROPE 11531). The European Commission confirmed on Tuesday 10 May to launch an in-depth investigation into the legality of this measure under European law.
The German telecommunications regulator (BNetzA) informed the European Commission on 7 April that it intended to allow Deutsche Telekom to use vectoring technology. This practice allows for the use of existing copper networks for telecommunication lines at high speeds. It is generally used as an intermediary measure instead of using fibre-optic networks. Nonetheless, it can only be used when it is applied to an entire bundle of copper cables, which prevents the physical unbundling of individual connections by alternative operators.
The European Commission justified its investigation by indicating that it "recognised" that the BNetzA proposal improved broadband speeds above 50 Mbit/s to 1.4 million households. "Nevertheless, in its current form the proposal appears likely to have a considerably restricting effect on alternative operators", which purchase access to Deutsche Telekom in order to be competitive in the services they provide to final users. According to the Commission, the alternative access solutions offered by BNetzA are not satisfactory for ensuring appropriate safeguards for competition and investment now or for the future. The BNetza proposal suggests offering alternative operators "active" or "virtual" access in the event of there being no physical unbundling. The Commission notes that the first option is clashing, based on the opinion of BnetzA, with technical restrictions, whilst the second option would physically and economically restrict the access of alternative operators.
Alessandro Gropelli, Head of Communications at European Telecommunications Network Operators' Association (ETNO) responded by stating "Vectoring delivers on citizens' quest for speedy broadband and boosts infrastructure competition. That's why there should be no regulatory delays. Super-vectoring will provide speeds of up to 250mbps". The President of the European Competitive Telecommunications Association (ECTA), Gijs Phoelich, unsurprisingly expressed the opposite point of view and said that their organisation had serious concerns about the repercussions of this measure which, if implemented, would threaten sustainable competition by eliminating competitors and their market investments by obstructing investments in fibre, which they would be prepared to make if there were a level playing field. He also indicated that a quasi re-monopolisation of the market would have dramatic effects on innovation, access and final users and welcomed the Commission to open an in-depth investigation. (Original version in French by Sophie Petitjean)