German regulator BNetzA Thurs. signaled displeasure with govt. pl...
German regulator BNetzA Thurs. signaled displeasure with govt. plans to give Deutsche Telekom (DT) a regulatory holiday while it installs a new fiber network. Releasing the agency’s annual report, BNetzA Pres. Matthias Kurth said it’s “no miracle but the…
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effect of competition” that DT competitors’ market shares have grown disproportionately. In 2004, DT rivals provided 17% of all DSL connections, a number rising to 38% at the end of 2005. Kurth said the achievement resulted from goal- and competition-oriented regulation. He said he worries about the “shallow” debate on rolling back allegedly heavy-handed regulation to further innovation and foster investment. Apart from the fact that those arguments always come from the same corner -- DT -- the annual report shows they're untrue, he said: Rather, opening the monopoly network has been good for growth. The Ministry of Economics (BMWi) is overhauling Germany’s telecom act and is expected to submit amendments in May, said telecom lawyer Axel Spies. One amendment in play is a new one, Section 9a, that would guard DT from oversight while it builds a fiber VDSL network. The proposal has drawn fire not only from competitive telcos but also from the European Commission. Now, it appears the ministry may be prepared to “revisit” the draft article to “accommodate” Commission concerns to an extent. And complaints pending against Germany at the U.S. Trade Representative (USTR) hit at the notion of a regulatory moratorium (and other issues), and the ministry is talking to the USTR about them, Spies said. But because there’s no text of any revisions to 9a, “we don’t know yet whether these are only cosmetic changes.” DT rivals are “pleased that Mr. Kurth has made it clear that there is a clear connection between investments and regulatory environment that furthers and encourages competition,” Spies said on behalf of the German Competitive Carriers Assn. VATM. Competitors “agree there is no indication” Germany’s telecom sector is over- regulated, he added. Cabinet approval of the telecom act amendments is expected in May, after which the measure moves to the Bundesrat (Upper House of Parliament), which will vote June 16 on a formal position on the bill. It then shifts to the Bundestag (Lower House) for early fall consideration, Spies said.