Incumbent takes half of 2007 broadband sign-ups

4 Apr 2008

German regulator Bundesnetzagentur (BNetzA) has released its Annual Report for 2007.

The report found that fixed network operators are concentrating on broadband services, and said that five million new connections were made during 2007, taking the overall total to nearly 20 million. ‘More than half of the broadband connections are switched by competitors and almost half of all new DSL customers use offers of the competitors,’ said BNetzA president Matthias Kurt. However Verband der Anbieter von Telekommunikations (VATM), which represents most of Germany’s alternative telcos, believed that BNetzA was painting too rosy a picture. Dr Axel Spies, on behalf of VATM, told TeleGeography, ‘DT remains…dominant and uses its market power. More than half of the new DSL customers use DT; they are stuck with long-term contracts. For instance, DT’s bundled offer ‘Call&Surf’ has a minimum term of two years which undermines BNetzA’s goal of opening the market. These long-term contracts are…not in line with the European Commission’s position that customers should be free to choose their own provider that suits their needs.’

Germany, Deutsche Telekom (DT)