Right to “fast” network: cost basis for the basic Internet service
The Federal Network Agency has published principles with which the “affordable” final prices for the extended universal service could be determined.
The new right to be supplied with telecommunications services stipulates that each end-user has an individual right to the provision of a voice communication service and a “fast” Internet access service at an “affordable price” in the interests of “adequate social and economic participation”. The Federal Network Agency (BNetzA) published principles on Tuesday with which providers who are obliged to offer the extended universal service can determine the corresponding costs for consumers who have not been supplied up to now.
The published principles apply to telecommunications services at a fixed location, i.e. not to mobile communications. The necessary connection to a public telecommunications network is included. In principle, the Bundestag anchored the expanded universal service last year in the Telecommunications Act (TKG).
Average prices for reference
As a point of reference, the regulatory authority used the nationwide average of prices for products “that are comparable to a basic service”. In order to determine the monthly price for the use of the service, “the expenses in connection with the operation of the telecommunications facility, which go beyond the usual level, would also be taken into account”. These can be electricity costs that arise when operating a satellite radio dish. However, in view of the provisions of the controversial ordinance on the minimum requirements for the right to be provided with telecommunications services (TKMV), Internet from space is not always a substitute for a fixed network connection.
According to the BNetzA paper, the average price of connections in the respective district can be used as a reference value for the affordable market value for the connection with 10 Mbit/s in download and 1.7 Mbit/s in upload. This makes it possible to take regional characteristics into account “which can have an impact on the connection price”. In general, prices for such services, including the necessary connection, which are provided as part of the universal service, should not exceed those of comparable products offered on the market. They should “under no circumstances have a prohibitive or expropriating effect”.
And how much can it cost now?
What that means in concrete terms remained unclear at first. When asked by voonze online, the Association for Telecommunications and Value-Added Services (VATM) felt unable to quickly prepare a model calculation of how expensive it could be to claim the right to “fast” Internet and referred to the BNetzA. We are in the process of evaluating the principles. The authority itself did not initially report back with price information on Tuesday afternoon.
The Federal Association of Broadband Communication (Breko) was also unable to comment on a potential range at short notice. However, a spokeswoman criticized: “A technology-neutral consideration of the average prices both for the telecommunications services and the necessary connection does not go far enough and does not take into account the existing technological differences.” This leads to disadvantages for companies that build fiber optic connections to implement the claim.
