Germany’s Federal Network Agency, known as the Bundesnetzagentur or BNetzA, published new pricing orientation guidelines aimed at accelerating Open Access negotiations for the country’s fragmented fiber-optic networks. According to BNetzA President Klaus Müller, the agency designed the framework to establish fair wholesale charges, prevent regional monopolies, and facilitate the ongoing migration from legacy copper DSL to modern fiber infrastructure.
Fragmented Fiber Market Drives BNetzA Intervention
Germany’s fiber-optic expansion involves several hundred active companies, with approximately two-thirds of the around 300 companies operating fiber-optic networks serving fewer than 10,000 households each, according to an Open Access study by consulting firm Böcker Ziemen. This structural fragmentation creates significant hurdles for third-party access negotiations, frequently leaving nationwide internet service providers unable to offer services across every local network. According to the Böcker Ziemen study, 73 percent of surveyed companies cite pricing levels as their primary barrier to open access agreements, while 70 percent view supply and demand dynamics as fragmented and inefficient. To address these market frictions, BNetzA released its orientation framework to provide a neutral benchmark for commercially negotiated wholesale fees.
Two-Part Margin Model Balances Costs and Investments
The regulatory approach relies on calculating wholesale charges as a discount from the retail end-customer price set by the expanding network operator. BNetzA analyzed current retail prices and wholesale fees across multiple bandwidth classes, establishing an average retail-to-wholesale margin of 32 percent. Because profit margins shrink at higher speeds due to rising customer acquisition and data transport expenses, the agency proposed a two-part margin structure combining a fixed absolute amount of 5 euros with a 20 percent variable rate. This structure automatically generates higher margins for higher-bandwidth products, ensuring service providers can cover marketing, data transport, and connectivity costs while maintaining competitive retail pricing.
Copper-to-Fiber Migration and Next Steps
By anchoring wholesale fees to end-customer prices, the BNetzA framework allows expanding operators to retain full freedom over retail pricing strategies and amortization timelines. The agency relies on existing market pressure from legacy DSL and cable internet to restrain retail prices, though the regulatory paper notes that the authority reserves the right to introduce additional market safeguards if necessary. The publication initiates a formal consultation period, giving market participants until November 16, 2026, to submit official statements on the guidelines. This initiative builds on BNetzA’s broader rule-based regulatory concept introduced in January 2026 to govern Germany’s ongoing copper-to-fiber infrastructure migration.
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