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German Associations Issue Call for Amendment of Digital Networks Bill
Source: www.telecompaper.com
Source Date: Friday, June 01, 2018
Focus: Institution and HR Management
Country: Germany
Created: Jun 03, 2018

German ICT associations Breko, Buglas, the Association of German Counties, and the Association of Municipal Enterprises (VKU) have issued a statement calling for the German government to amend the Digital Networks Bill (DigiNetzG) “as quickly as possible”, arguing the law in its current form is upholding numerous broadband expansion plans. 

In addition to leading to the doubling up of fibre cable, the law’s provisions calling for the joint laying of fibre infrastructure also “undermines and even makes impossible” the business models of companies building up broadband networks, they said. Moreover, the law’s wide interpretation of the term “public subsidies” to determine projects where joint laying is permissible means that nearly every communal enterprise building up a network will see their business plans “become unprofitable” through competitors’ involvement.  
Instead, the revised law must redefine “public subsidies” so that only the joint laying of cables is only allowed in cases where construction works are “directly” financed through public monies. “Disincentives” that lead to over-construction should also be avoided through regulations that rule out parallel construction projects, they added. An open access model granting competitors access to infrastructure at fair conditions should rather be introduced, as this would increase the utilization of new infrastructure and create incentives to further build up fibre networks, they said.
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