The European Commission asked the German regulatory authority, the Federal Network Agency, to do more to ensure a level playing field in the market for high-speed optical fibre connections.
It is asking the regulator to help secure adequate access to the market for competitors to Deutsche Telekom AG.
The Commission, the executive and regulatory branch of the European Union, also asked the national regulator to complete its market analysis for access to the new super fast networks, dubbed next-generation networks (NGNs).
"The Commission is keen to ensure that NGNs can be deployed and made accessible in a consistent and transparent manner across Europe," said Viviane Reding, EU telecom commissioner. "It is vital that we ensure effective competition and the legal certainty necessary for all market players to invest in new products and services that will benefit consumers."
In May the Federal Network Agency notified the Commission of rules designed to force Deutsche Telekom to grant competitors access to its copper fixed telephone network. As Deutsche Telekom is upgrading its network by rolling out optical fibre-based connections, these rules also apply during the transition to the new infrastructure.
In a letter sent to the national regulator Monday, the Commission did not challenge its market definition of local loop unbundling but raised a number of issues on regulatory remedies. Having examined the rules, the Commission said they were a step in the right direction but ultimately they have failed to ensure fair competition.
"There are more issues to be tackled, we want more remedies," said Martin Selmayr, a Commission spokesman in charge of telecom-related issues, at a press conference Monday.
The rollout of fibre closer to the customers, normally to the street cabinets, enables the provision of high bandwidth services but it raises important issues regarding the position of alternative operators that currently benefit from access obligations of Deutsche Telekom's existing networks.