The expansion of fibre optic networks in Germany is developing dynamically. At the same time, there are increasing reports from network operators, associations and local authorities about parallel fibre optic expansion, which is commonly referred to by market participants as overbuilding. WIK-Consult was commissioned by the Federal Ministry for Digital and Transport to analyse the economic and legal aspects of this issue.
Market participants assess the economic impact of the publicly discussed cases of overbuilding very differently. On the one hand, reference is made to the infrastructure and innovation competition desired by the legislator. On the other hand, it is argued that overbuilding leads to the crowding out of market participants if it takes place in municipalities where, from a business perspective, only one network infrastructure is viable (in the long term).
In order to provide an economic and legal assessment of the evaluations expressed in the market, expansion costs, demand and addressable markets are analysed against the background of heterogeneous expansion conditions for fibre optic expansion with the help of models of fibre optic expansion, which contribute to gaining an assessment of the viability of infrastructure competition in Germany.
Based on specific cases of dual roll-out, typical case histories are also identified and categorised within the framework of the models. However, the cases themselves are not analysed in detail.
Infrastructure competition in line with competition law and regulatory objectives?
This approach makes it possible to address the questions of where infrastructure competition accelerates expansion, where it can be seen as a driver of migration to fibre optic networks and a welfare-enhancing step towards self-sustaining competition and whether and under what conditions a superstructure could possibly be regarded as an abuse of a dominant market position within the meaning of competition law, where it is possibly incompatible with the regulatory objectives, runs counter to the objectives of the federal government's gigabit strategy or reduces the scope of self-sufficient expansion, as a result of which the public funding necessary for nationwide coverage with gigabit connections might have to be expanded. the public funding required for nationwide coverage with gigabit connections would have to be expanded.
Finally, options for action are presented. IRNIK GbR was in charge of the legal categorisation and the presentation of the regulatory options for action as a subcontractor.
