Monday, February 26, 2007

Broadband Regulatory Battle in Germany

A law is going into effect in Germany that will eliminate any requirement for Deutsche Telekom to offer unbndled access to its new VDSL network. Deutsche Telekom has stated that it would stop deploying VDSL if it had to provide unbundled access to its VDSL network, at least in the short run.

This new law in Germany goes against European Union (EU) rullings. The EU is promising to fight it unless it is brought into line with EU policy.

This is a huge issue in Europe right now. Germany is taking the lead in fighting the EU. Telefonica in Spain has stated that it will not invest in broadband if it has to provide unbundled access. Oh the other hand, the regulators in Italy and France have accepted the EU approach. Telecom Italia is splitting apart to conform with the requirements of the regulator in Italy. In France, an aggressive unbundling policy has created a very active competitive market with some of the best consumer broadband deals globally.

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