German broadband users are left waiting

By Simon Taylor

Date: 15/06/06

Offering football matches over the internet is seen by the IT industry as an important element of 'content' which can drive the take-up of broadband digital services and boost investment in infrastructure.

The issue has been highlighted in Germany in the case of Deutsche Telekom's plans to build a new fibre-optic network.

Surprisingly, Germany lags behind other EU member states in terms of broadband infrastructure provision. Deutsche Telekom's fibre-optic network would offer download speeds five times faster than current broadband connections. These download rates make it ideal for streaming television programmes, films and sporting events over the internet.

The network is meant to connect up to 50 German cities by the end of 2007, reaching up to 12 million households. Originally it was hoped that the first stage of rolling out the network, linking ten cities with an initial investment of EUR 500 million, would have been ready for the start of the World Cup.

But Deutsche Telekom now expects to complete the first stage by the end of June and it may take an extra few weeks to become operational, missing the end of the World Cup. It should, however, be ready for the start of the next German football season in August.

But further rollout of the network has run into problems because of regulatory uncertainty and tensions with the European Commission.

Deutsche Telekom has asked for a 'regulatory holiday' for the first few years of the new network, which would prevent its competitors from having access to the system.

But Viviane Reding, the information society commissioner, argues that the new network should be covered by rules designed to ensure competition. She has warned that the Commission might launch a legal challenge if Deutsche Telekom was allowed by its national regulator to keep out competitors. A draft new telecoms regulation has been approved by the German cabinet and submitted to the German Bundestag for approval. But the document is vague on the question of the fibre-optics network.

Deutsche Telekom's spokesman for regulatory issues, Mark Nierwetberg, says that the draft law "goes in the right direction" but needs to be clearer on the issue of "technical specification". In the meantime, the company is saying it will only continue expanding the network if it has what it calls a "clear regulatory framework".

With the possibility of a long legal dispute ahead, football fans living outside the first ten cities to be connected may have to wait a long time before they can watch the stars of the Bundesliga over 0the internet.

Article reports that although Germany was planning to have the fastest internet in the world, the country was lagging behind.
Article is part of a European Voice Special Report, 'The EU and Football'.

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