Sign of relaxation in a highly competitive broadband market or a hostile takeover? Under the motto “Stronger together for fibre optics”, Deutsche Telekom has joined the Federal Association of Fibre Optic Connections (Buglas). This is unusual, because until now only telecom competitors such as Deutsche Giganetz, GVG Glasfaser, Tele Columbus, UGG, Wilhelm.tel, Willi.tel and several municipal utilities have been represented in Buglas. This is the first time for a telecom to join a telecom association. But both parties are “united by the long-term investment horizon for fibre optic expansion,” Telekom board member Srini Gopalan, who is responsible for business in Germany, said in explaining the move. They also want to further intensify cooperation with regional providers and establish even greater collaboration in fibre to the home (FTTH) “for future-proof digitalisation”.
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Gopalan stressedTelekom relies on open networks based on open access, which provide all customers with a high level of provider diversity. In all regions jointly developed with Buglas companies, competition takes place on the respective line according to this principle. This means: “network partners” such as O2, Vodafone, 1&1 or regional providers can use these lines without discrimination. However, many telekom challengers also complain about the doubling-up expansion push by Telekom. Buglas Chairman Theo Weirich assures: “Cooperation with regional suppliers has been an essential part of Telekom’s expansion strategy for years.” If intensive cooperation now takes place “on an equal footing”, both parties benefit from this.
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Patrick Helms, vice-president of Buglas, which has around 170 members, and managing director of Glasfascher Ruhr, spoke of “an important signal for the entire industry”. The aim is to connect Germany to the most modern FTTH technology as soon as possible. The subsidiary of Stadtwerke Bochum has been working closely with Telekom for two years in expanding cooperation, which has benefited many citizens. However, Buglas also faced losses: M-Net, the operator from Munich and NetCologne, announced in February that they would leave the association, on whose board they previously sat, at the end of the year. After previously campaigning in vain for a merger between the two industry representatives, they turned to the cable and digital association Anga.
The Federal Association of Broadband Communications (Breco), which has often fought side by side with BUGLAS for the common cause, is very disappointed by the announcement: “With the inclusion of the ex-monopolist, BUGLAS is giving up its identity as a representative of the competitors’ interest in fiber optic expansion and will become the German Telecom Association,” fears BRECO Managing Director Stephan Albers. With the departure of its largest members, BUGLAS becomes “dependent on the dominant company.” This means that it loses the opportunity to “shape the telecommunications market in the interest of competitors” – for example by shutting down copper-based DSL networks, expanding Telekom’s fiber optic double expansion or reintroducing service provider liability. Breco’s more than 500 members also cooperate with Telekom. But they can count on a strong association on their side “which is committed to fair open access and genuine competition.”
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