Telekom’s dominance in the retail market: VATM warns the Federal Network Agency against a paradigm shift and a step backwards at the expense of consumers

Cologne, 23 March 2026. The VATM strongly warns the Federal Network Agency against weakening regulation of Telekom in the residential customer market. From the association’s perspective, regional deregulation – as currently envisaged in the BNetzA’s key points on the “Market Definition and Market Analysis for the Mass-Market Fixed Network” – would be a serious mistake.

On the occasion of today’s deadline for submitting comments on the key points, the association stresses that such a step would primarily harm consumers through reduced choice, less price competition and poorer switching opportunities.

“The residential customer market continues to be clearly dominated by Telekom,” explains VATM Managing Director Dr Frederic Ufer. “Sadly, there is still no sign of effective, self‑sustaining competition in Germany. Only a few weeks ago, the Monopolies Commission issued a stark warning about Telekom’s persistently overwhelming position in the German market. VATM’s market analyses have shown for years that the company is continuing to gain further market share. Easing regulation for a company with such market power would therefore send a disastrous signal.”

Anyone who exempts Telekom from SMP regulation at regional level under these conditions, risks further consolidating its existing market power rather than strengthening competition, and will ultimately worsen conditions for millions of customers. The regulatory authority must take greater account of the long-term competitive objectives for the market.

The successful model of nationwide access seekers that has sustained competition from the outset remains, in the fixed-line sector, still largely characterised by nationwide pricing and marketing structures, the basis of which regulation must not withdraw without necessity. For the suppliers serving business customers from all areas of industry organised within VATM, nationwide availability under reliable framework conditions is likewise an essential prerequisite. The authority, the Managing Director emphasises, has not sufficiently considered the serious consequences of the contemplated policy choices. The association would like to see a more comprehensive analysis here, one that is more strongly oriented towards a competitive guiding model for the future.

The VATM is particularly critical of the fact that the Federal Network Agency bases its regionalisation considerations heavily on roll-out and availability data. However, connections that have been installed but are not in use are precisely not evidence of effective competition. What matters are actual market shares and connections that are genuinely active. “The Federal Network Agency must not allow itself to be blinded by roll-out figures here. What matters to consumers is not what is available on paper, but whether there is genuine competition in practice. Anyone who lifts regulation from Telekom too soon is harming customers,” said Ufer.

VATM therefore calls for Deutsche Telekom to continue to be regulated nationwide as a company with significant market power, that regulation should not be removed regionally, and that the market analysis should be based on real competitive conditions rather than just infrastructure availability. Only in this way can consumer interests be protected and fair competition maintained.