First Come, First Serve – German Regulator Decides On VDSL Vectoring

Following a first part decision in February, the Federal Network Agency has now published the draft second part of its decision specifying the legal and technical framework of VDSL vectoring technology on 4 June 2014.

Vectoring is an advanced transmission technology enabling internet service providers to boost bandwidth up to 100 megabytes utilizing the old copper lines connecting most German households to the internet. Since vectoring is incompatible with local-loop unbundling, the German incumbent Deutsche Telekom (DT) may deny access to the unbundled “last mile” if either DT itself or another supplier plans to deploy vectoring technology. However, as a key criterion for refusing access to the last mile, the operator implementing vectoring technology is obliged to offer appropriate virtual access to the affected area via bit stream products as a substitute for physical access to the unbundled local loop.

In order to enable fair competition between competing providers of vectoring technology, the FNA introduced a so-called vectoring-list. Potential suppliers may enroll on a “first come first serve” basis as a provider utilizing vectoring within a certain area. Once a supplier has registered its intent to provide vectoring technology, the respective street cabinet (Kabelverzweiger) will be reserved and the supplier will be obliged to set up VSDL vectoring and implement a bitstream product within one year. This list, which will be maintained by DT itself – not the Federal Network Agency –, will open as of 30 July 2014.

The decision is still subject to the European Commission’s approval, but – provisionally – already applies today.

FNA decision - first part, 25 February 2013: http://bit.ly/SVHIQP

FNA decision - second part, 4 June 2014: http://bit.ly/1ic0vU2