Deutsche Telekom has officially joined the German Federal Association for Fiber Optic Connections (BUGLAS), an organization promoting fiber infrastructure in Germany. This announcement, made at the Fibre Optic Partner Day in Bonn, Germany, aims to bolster nationwide fiber expansion through partnerships and collaboration.
Despite its seemingly beneficial intent, this development has sparked mixed reactions within the industry. Historically, BUGLAS has championed the interests of smaller fiber providers and municipalities, often positioning itself against Deutsche Telekom’s market dominance.
Deutsche Telekom projects that its new membership will facilitate better cooperation with its rivals to ensure more efficient national coverage. Srini Gopalan, responsible for business in Germany on the Telekom board, stated, “Deutsche Telekom and BUGLAS share a long-term investment horizon for fiber optic expansion. We want to further intensify our collaboration with regional providers and enter into even more FTTH partnerships for future-proof digitization.”
Thilo Höllen, Telekom’s Head of Fibre Optic Cooperation, emphasized that the membership would help in campaigning for faster approvals and alternative installation methods which impact the entire industry.
However, the reaction from other industry stakeholders has not been overwhelmingly positive. The German telecom industry group VATM criticized the decision, alleging it could hinder the nation’s fiber rollout. Dr. Frederic Ufer, Managing Director of VATM, expressed concerns that Deutsche Telekom’s move would slow down the nation’s fiber rollout, weakening large investors who rely on higher-quality wholesale products.
Ufer’s criticism extends to Telekom’s strategic practices, noting that the company often collaborates with small regional partners for fiber optics but manages operations itself. This approach, he argues, deprives the market of the added value necessary for large-scale expansion. Furthermore, Ufer accused Deutsche Telekom of using construction workers paid by local municipalities to save costs, redirecting these savings to its American market investments.
Previously, BUGLAS had been a vocal critic of Deutsche Telekom’s network expansion strategies, particularly overbuild issues. This contentious history accentuates the skepticism surrounding the recent membership announcement.
