BERLIN, Aug. 2 (Xinhua) -- The German government plans to shut down a legal loophole which currently allows laying fiber optic cables in trenches that were opened by other companies, according to a draft of the amended telecommunication law, the German magazine Spiegel reports on Thursday.
The corresponding paragraph 77i, which was designed to facilitate the expansion of digital high-speed networks (DigiNetzG) grants companies the right to lay their fiber-optic cables in the same construction trenches of the initial project developer.
The old paragraph applies if building projects are at least partially financed by the public sector and was intended for projects like sewer tunnels or underground power lines.
At the moment, paragraph 77i is increasingly being used for purposes other than intended. When small companies or municipalities make use of government subsidies to lay fiber optic cables, competitors would be allowed to lay their cables right next to it.
There is a risk that "the business model of the first mover will no longer pay off," the ministry of transport told Spiegel.
Speaking to Xinhua, a press spokesman of Deutsche Telekom argued that the costs for construction projects are divided between all involved parties. Commenting on the draft bill, he added that "this amendment contradicts the coalition agreement and ends the infrastructure competition in favor of municipal companies."
