Access to in-building infrastructure © Photo Credit: Владимир Тюрин - stock.adobe.com

Access to in-building infrastructure

Access to in-building networks: Economic perspective of access to in-building networks, efficient access models and pricing as well as its legal implementation

This study examines the economic and legal basis for access to inbuilding networks. It recommends efficient access models and efficient pricing for access to building networks, and examines from a legal perspective what legal implementation in Germany could look like on the basis of the European legal framework.

At the outset of this study, market problems were identified from an economic perspective that require timely, abstract and general clarification of the conditions for access to in-building networks. However, these have not yet been achieved within the framework of existing law.

This study shows that, in almost all relevant cases, in-building fibre wiring cannot be replicated (efficiently) and represents a natural monopoly. Access to in-building networks not only enables infrastructure competition where it is efficiently possible, it is also necessary to induce competition for roll-out of in-building networks and in access networks. There is therefore much to be said for stipulating a general right of access in abstract terms, independently of any existing end-user contract.

Efficient access requires efficient pricing. In this regard, it has been demonstrated that the access prices based on cost orientation (modified by a ‘VHCN surcharge’) is the best solution. In addition, prices should be set uniformly across the country. This is necessary for planning certainty, necessary investment incentives and the reduction of transaction costs.

The legal analysis examined which EU law restrictions exist in the implementation of the economic recommendations and, against this background, what a regulation in the TKG could look like that minimises legal risks on the one hand and, on the other hand, meets the economic recommendations as far as possible.

According to the argument developed here, the provisions of the EECC, and in particular Art. 61(3) subpara. 1 EECC, do not assume a legal right of access to in-building networks, but rather an obligation on Member States to transfer the relevant competence for possible access regulation to the national regulatory authorities.

In the legal analysis, two approaches to the legal implementation of an access model for building networks were developed on the basis of European regulations. On the one hand, an one-to-one-implementation of the EECC is presented and, on the other hand, a legislative default model including an implementation of the access conditions, in particular the approach to pricing, is developed.

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