No objections to cooperation between Telekom and Telefónica for the supply of fast broadband services

06.11.2014

The Bundeskartellamt has no objections to the cooperation between Telekom Deutschland GmbH, Bonn, and Telefónica O2 Germany GmbH & Co. OHG, Munich for the provision of fast broadband connections.

Andreas Mundt, President of the Bundeskartellamt: "The competitive situation in broadband expansion has changed in the last few years. Telekom's competitors have decided not to further expand their own networks and instead to cooperate with the company. It is already apparent that there will be no parallel nationwide expansion of copper and optical fibre networks for the time being. The Bundeskartellamt has taken account of this development in its decision."

Since acquiring its competitor E-Plus, Telefónica has become one of three mobile network operators in Germany. Although to a lesser extent, the company is also active in the fixed network business. Telefónica offers final customers broadband connections and markets wholesale broadband access products to providers without their own infrastructure. Apart from having its own mobile network, Deutsche Telekom also has a nationwide telecommunications infrastructure from which it provides DSL telephone and broadband data services.

Telekom and Telefónica have submitted to the Bundeskartellamt cooperation agreements based on which they plan to work more closely together in future in the supply of fast broadband access. Telefónica would like to offer its customers broadband connections with faster transmission (so-called NGA connections, in particular VDSL Vectoring) which it is unable to do on its own for economic reasons. From the cooperation Telekom expects to be able to carry out broadband expansion with faster access in areas which are already connected within a shorter time period.

The Bundeskartellamt has decided not to take any action against the cooperation (decision under § 32 c of the Act against Restraints of Competition). The cooperation is not expected to impede infrastructure competition between the parties concerned or with third companies. Without the cooperation Telefónica would have been unable in the medium term to offer faster broadband access. As the company will not have its own fixed network infrastructure in the future, it is dependent on the cooperation.

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