Future broadband networks?

Future broadband networks?
What is at stake? Facts first! Most European incumbents are planning to deploy new fiber-based broadband national networks. It is the case for DT (investing some €3bn in the VDSL network), but also for FT, Telefonica (€4bn network upgrade), and others. Many reasons are behind such strategies. The first one is of course delivering broadband services in better conditions (up to 100 Mbit/s per household). Doing this in fact, they hope to create a new market and are trying to escape regulatory conditions to open their existing networks to competitors. They try to impose the equation: new network= new regulation rules. Many rationales are behind, such as it is the only way to recoup investments; we concede efforts (financial, resources, time,) to build a new asset, it is not to share it with competitors; cable operators are not required to share their networks; ... This position is illustrated by DT current strategy, backed by the German government.

There is a real conflict of interest with EU regulators. The way EU will answer will shape the European telecom landscape for years.

Can EU block “ incumbents” to dominate again local markets? Can they allow small competitors to piggyback new broadband networks as they do currently with existing networks? The EU commissioner has already warned that the answer is YES, and any offender will be taken to the European Court of Justice.

On the other side, incumbents could delay the deployment of their network if regulatory conditions are not satisfactory and clear.

It is an important debate here in Europe, and from the result the total telecom industry should be reshaped or not.                                                    To be continued.................