10 Juli VATM warns of significant threat to competition and fibre rollout in Europe from upcoming EU reforms – Urgent letters from industry associations and telecom providers
Brussels, 10 July 2025. Numerous European telecommunications providers and industry associations issued today urgent appeals to the European Commission, warning of severe consequences from the proposed reforms under the Digital Networks Act (DNA) and the revision of the Market Recommendation (RRM).
The VATM, a co-signatory of one of the urgent letters, also highlighted the significant impact of the planned changes in Brussels on fair competition, regulatory continuity, and long-term investor confidence. Together with other associations, it addressed these concerns to the German Federal Government, the Federal Network Agency, and European institutions.
„We strongly support the idea of a digital single market and cross-border telecommunications services. However, the European Commission’s proposals in key areas are anti-industry, anti-competitive, investment-threatening and contrary to the system,“ emphasises VATM Managing Director Dr Frederic Ufer. „Their impact on competition, network expansion and the digital future of Germany and Europe is drastic. The urgently needed reduction of bureaucracy in European regulations must certainly not start with stricter rules of market-dominant companies. This will set back the Digital Decade by years and make it impossible to achieve both European and national targets.“
The central criticism of the planned reform by the DNA is the significant reduction of upfront regulation for companies with significant market power (SMP). „This would open the door for Deutsche Telekom to further expand its dominant market position in Germany and misuse it at the expense of competition,“ warns Ufer. „Instead of targeted, evidence-based rules, we see a broad, impractical approach that would result in deregulation.“ The Body of European Regulators for Electronic Communications (BEREC) also recognised this risk and rejected the Commision’s direction.
The planned changes to the market definitions for Market 1 (wholesale services for the mass market) and Market 2 (wholesale services for business customers) are also very serious. These markets are currently regulated in 23 and 15 of the 27 EU Member States, respectively. In Germany especially, removing this regulation would come at a very bad time. It would not only reduce competition but also put billions in private investment at risk and make it harder for businesses to get access to fast and reliable digital connections.
„Telecom competitors who are driving fibre rollout in Germany and have long supported service diversity and innovation now need clear and reliable regulation more than ever,“ said Ufer. Many telecom companies operating across Europe, including several VATM members serving around 240 million EU citizens, warn of a major loss of investor confidence and fear serious damage to Europe’s global competitiveness.
VATM supports the industry’s call on the European Commission to maintain preventive regulation in Market 1 and Market 2 as an essential tool for ensuring competition and consumer protection. The recommendation on relevant markets must not be changed before the Digital Networks Act (DNA) is fully evaluated and completed – and it must not be removed while market dominance continues. Access to physical infrastructure, such as ducts and poles, must also remain guaranteed.
The German government and the Federal Network Agency must push for a stable and predictable regulatory framework with the European Commission and also work with the European Parliament—before serious damage is done,“ said the Managing Director. „We must not risk the progress made over the past decades in building strong networks, encouraging price competition, and supporting innovation—all of which depend on a reliable and competitive regulatory system.“ A regulation based on market power and real market conditions must continue to be the foundation for a strong digital Europe.
Attachments:
- Urgent letter from European industry associations: JOINT STATEMENT ON THE COMMISSION’S CALL FOR EVIDENCE ON THE DIGITAL NETWORKS ACT – FOCUS ON ACCESS REGULATION
- Open letter from leading European telecommunications companies:
WHY EUROPE SHOULD NOT DISRUPT INVESTOR CONFIDENCE IN FIXED MARKETS
