Federal Network Agency publishes draft decision on vectoring near local exchanges
The German Federal Network Agency published a draft regulatory order on 23 November 2015 aiming to set down the basic conditions under which Telekom Deutschland GmbH (Telekom) has to grant its competitors access to the local loop on the “last mile” between the main distribution frames and the connection points at end-customers’ homes.
Following this decision, Telekom is still basically obliged to give its competitors access to the bare wire of the unbundled local loop. However, it is entitled to also deny access to the local loop in the immediate vicinity of its main distribution frames if it equips the local exchanges around the main distribution frames with vectoring technology. Only around 1.5 per cent (approximately 135,000) of the subscriber lines leased by competitors will actually be affected in practice. Instead of access to the subscriber line (local loop), Telekom will have to offer its competitors a virtual unbundled access product. The decision also includes an exemption: competitors can extend the local loop instead of Telekom. However, the condition for this is that they promise the Federal Republic of Germany that they will extend the local exchanges involved by the end of 2017. Binding commitments to extend the networks can be submitted up to the end of May 2016. The Federal Network Agency stated that it has given serious consideration to Telekom’s promise to invest in a roll-out of the local exchanges around all 8000 main distribution frames across Germany by 2018. The intention is to supply 80 per cent of households with superfast internet as a result of the roll-out.
Jochen Homann, president of the Federal Network Agency, called the decision a “fair compromise for the introduction of vectoring technology at local exchanges”. Stakeholders have until 18 January to submit their comments on the draft decision.
The press release and the draft decision can be found here.
Any questions? Please contact: Julian von Lucius
Practice Group: Telecommunications