Agenda

BUNDESKARTELLAMT (GERMAN COMPETITION AUTHORITY) REQUESTED COMMITMENTS FOR THE FIBRE-OPTIC DEVELOPMENT COOPERATION BETWEEN TELEKOM AND EWE

23/12/2019

The German Competition Authority, Bundeskartellamt has requested commitments for the cooperation in the development of fibre-optic networks of Telekom Deutschland and EWE in parts of Lower Saxony, North Rhine- Westphalia and Bremen.

Telekom Deutschland and EWE are the largest two competitors in mentioned region. EWE, is a company represented in north-west Germany with telecommunication services based on a substantial infrastructure. Telekom Deutschland based in Germany, in German network market, with its telecommunications network across Germany and its strong brand, is one of the leading companies in the market. The parties declared their intention to cooperate in fibre-optic deployment to the Bunderskartellamt at the end of 2017. After agreed on cooperation’s essential conditions, the proceeding was formally notified on 21 March 2019. Based on several competition concerns, the Authority has requested following commitments from the parties to guarantee that accelerate deployment including rural areas and to not hinder competitors’ operations in the respective regions. Accordingly;

  • Telekom Deutschland and EWE have undertaken that 300.000 connections will be reached for the end customer including rural areas with fibre optic cable in the next 4 years and this operation will be performed commercially, not publicly funded. Thus, the fibre-optic network’s range will be larger by comparison with planned as a part of cooperation.
  • The companies will allow to third companies for non-discriminatory access to the new network and its high quality technical upstream services. During specific period certain part of the expanded connections will be transferred to competing telecommunications companies that commercialize to end customers. Thus, competition will be improved on the end customer market.
  • The companies will abstain to take measure against rival telecommunications companies and they will not focus only on urban areas which already have cable networks.
  • Both companies will still independently participate to tenders for gigabit-ready telecommunication networks, especially in rural areas where commercial development is not possible.

Bunderskartellamt has announced that the listed commitments are binding and limited to six years. The proposed establishment of a new joint venture is also subject to merger control by Bundeskartellamt that will be a second eye on the established commitments.