29.01.2010
Fines for unlawful telephone advertising

25.01.2010
Reliability of the German electricity

06.01.2010
Energy - Investment budgets

05.01.2010
Rail infrastructure

14.12.2009
Activity Report telecommunication market

14.12.2009
Activity Report postal market

11.12.2009
Stations pricing system

08.12.2009
Nationwide infrastructure atlas to started

07.12.2009
Access to connection infrastructure to DTAG

20.11.2009
Investment budgets for offshore wind parks

18.11.2009
Postal rates for 2010 approved

18.11.2009
Changes to the network and service facilities rejected

16.11.2009
Emergency Ruling on distribution frames

04.11.2009
Numbering concept publishes

04.11.2009
Framework conditions infrastructure atlas

Federal Network Agency imposes fines of EUR 500,000 for unlawful telephone advertising

Kurth: "We will not tolerate the law being broken by nuisance advertising"

The Federal Network Agency has imposed fines in six legal proceedings involving unlawful telephone advertising. In December 2009 and January 2010, fines of up to EUR 500,000 were imposed in a total of nine legal proceedings. This is the first time the Federal Network Agency has actually imposed fines for failure to observe the ban on telephone advertising and the obligation to display the caller’s telephone number.

Since the amendments to the Act against Restraints of Competition and the Telecommunications Act entered into force on 4 August 2009, making unsolicited telephone calls for advertising purposes and suppressing the calling party’s number have constituted administrative offences. The fines have been imposed on the parties commissioning the unsolicited calls as well as on the call centres actually making these calls. In one other case involving civil penalties, the case was suspended owing to a lack of evidence.

"Some companies’ blatant failure to observe the statutory ban on unlawful telephone advertising which has been in place for quite some time now is totally unacceptable. The regulations governing telephone advertising apply without restriction", says Matthias Kurth, President of the Federal Network Agency. "It cannot be tolerated that companies gain a competitive edge by disturbing consumers. By imposing these fines, we are sending out a very clear message that we are not willing to tolerate breaches of the law. It is precisely the companies commissioning these telephone calls that have an even greater responsibility to observe statutory obligations."

Fines imposed for unlawful telephone advertising
In the specific cases at hand, telephone calls were made unlawfully as part of an advertising campaign without the consumers' explicit prior consent to receiving telemarketing calls; some companies had commissioned call centres to make the calls for advertising purposes. These calls were made to advertise a wide range of services and products from the telecommunications and media industry as well as lottery scoops.

"Parties commissioning telephone advertising, too, mustn’t act outside the realm of the law. They are acting unlawfully when they commission third parties to carry out telemarketing campaigns without having the necessary explicit and effective consent of consumers to receiving telephone calls for advertising purposes", Mr. Kurth stresses. "I urge all advertisers – both the companies commissioning telephone calls and the call centres making these telephone calls – to observe the statutory regulations. No excuses will be tolerated."

Under the Act against Restraints of Competition, failure to observe the ban on unlawful telephone advertising may be subject to fines of up to EUR 50,000. The fine notices were preceded by lengthy investigative work. "We thank all consumers who contacted the Federal Network Agency with well-explained complaints and pieces of information", Mr. Kurth stresses. "The Federal Network Agency received over 28,000 complaints about unlawful telephone advertising between July and December 2009 alone. A large number of investigations are still underway.”

Fines imposed for failure to observe the ban on suppressing caller identification
Suppressing identification of the calling party of advertising calls is also subject to fines. In this context, fines were imposed for calls made which suppressed the telephone number of the call centre making the calls and for the companies making the advertising calls displaying a call number that had not been assigned to them. It conceals the identity of the calling party to display the wrong number and to suppress the identification of the calling number. The Federal Network Agency can impose fines of up to EUR 10,000 for advertising calls made that suppress the caller identification.

Pre-recorded telephone announcements not subject to fines
In cases involving so-called ping calls where a call is made and broken off after just one ring, and pre-recorded telephone announcements, it is not possible, even under the new laws, to impose fines of up to EUR 50,000 for unlawful telephone advertising. "However, in these cases, the Federal Network Agency can implement a large number of administrative measures under the Telecommunications Act, for instance, it can disconnect telephone numbers and impose bans on billing and collection for any telephone numbers that are being used illegally", Mr. Kurth says.

Detailed complaints
The Federal Network Agency can only intervene in unlawful telephone advertising if it has received detailed and plausible reports of breaches of the law. Unclear complaints as well as incoherent lists of calls without comment or vague information about calls received frequently lead to nothing. As it is the rights of consumers that are being violated with these telephone calls, the Federal Network Agency depends on obtaining detailed information from the consumers who have received these calls. This information should include exact information about the date and time the call was made and, if applicable, the call number displayed. It is also helpful for the investigative work if consumers can provide the actual name of the calling party, the products and services advertised as well as information about the company making the call and advertising the products and services. As persons filing the complaints may also be required to attend hearings as a witness, the Federal Network Agency also needs their full address details.

"Consumers can also take precautions themselves by being both economical and careful in handling their personal data in day-to-day life. This applies in particular to being most selective about who they give their telephone number to", Mr. Kurth explains.

Reliability of power supply in Germany’s electricity grids remains high

Kurth: "Interruption durations were reduced once again in 2008"

The reliability of power supply was very high in Germany yet again in 2008. The average outage duration in power supply was 16.89 minutes per end consumer in 2008. This is the outcome of reports submitted to the Federal Network Agency by German TSOs on the interruption duration in their power supply grids in 2008, pursuant to Section 52 of the Energy Industry Act. The reports must contain at the very least the time, duration, extent and cause of each individual interruption in power supply. All in all, 846 network operators reported approx. 208,100 interruptions for 871 electricity networks.

The Federal Network Agency subjected the data received to a plausibility check and analysis. The outcome was 813 companies with 834 networks whose data was used according to internationally recognised methods to calculate the value for the quality of power supply in Germany. This so-called SAIDI value (System Average Interruption Duration Index) yields the "average interruption duration in minutes per connected each end consumer".

"The reliability of power supply in German was enhanced once again in 2008. Whereas the SAIDI value was 19.25 minutes per end consumer in 2007, it was only 16.89 minutes per end consumer in 2008, representing an average reduction of more than two minutes in the SAIDI value", Matthias Kurth, President of the Federal Network Agency says.

The calculations were based solely on unplanned interruptions lasting more than three minutes due to atmospheric effects, retroactive impacts originating from other networks or those caused by third parties, and other impacts falling within the network operator’s scope of responsibility. Interruptions due to force majeure are not taken into account. Contrary to 2007, when the hurricane Kyrill led to a significant increase in the number of interruptions reported owing to "force majeure" (16.42 minutes), the value for 2008 was just 1.2 minutes.

The value of 16.89 minutes is once again an improvement over the previous year and demonstrates the high reliability of power supply in Germany compared to its European neighbours (e. g. Austria 2008: 43.69 minutes).

quality of power supply - SAIDI value 2008

Federal Network Agency approves investment budget of around € 4.3bn

Kurth: "We have set positive signals for the much-needed investment in German electricity and gas grids"

In 2009, the Federal Network Agency took a decision on over 200 applications for the approval of investment budgets submitted by gas and electricity companies. All in all, investments totalling around € 4.3bn were approved, around €4 bn of which account for investment in (electricity) transmission grids, approx. € 80 million which account for investment in (gas) pipelines systems and around € 230 million which account for investments in electricity distribution grids.

"Our decisions set positive signals for the much-needed investment in the energy grids and make an important contribution towards enhancing supply certainty in Germany. They also give crucial impetus for growth and employment especially in the current economic climate", the President of the Federal Network Agency, Matthias Kurth, said.

Under the Incentive Regulation Ordinance, transmission system operators may apply for investment budgets for major projects. This may be the case where investments are needed to guarantee the quality of supply, to integrate new power plants into the system and to arrange for the transfer of energy from renewable sources, particularly by means of the connection of offshore wind parks. In accordance with the approval issued, transmission system operators will be able to adapt the revenue cap specified by the Federal Network Agency as part of incentive regulation to the cost of capital incurred by the approved investment projects as from 1 January 2010.

"Our decisions enable transmission system operators to generate a reasonable return on capital. The transmission system operators are now in a position to deal adequately on a safe basis with the system requirements arising from pan- European gas and electricity trading and the desired promotion of renewable energy. This means we have managed to strike the right balance between the conflicting interests of low network charges on the one hand and necessary transmission grid investments on the other" Mr. Kurth said.

In 2008 and 2009, the Federal Network Agency received about 480 applications for the approval of investment budgets. Around 200 applications have already been approved, the remaining 280 are currently being examined. The investment budgets total approximately € 13bn. The majority of the investments applied for worth roughly € 11bn were earmarked for the power sector. Of these, the larger part amounting to about € 9bn involved transmission system operators.

New criteria for notification of intended changes or revisions of statements

Kurth: "Requirements create legal clarity for infrastructure companies"

The Federal Network Agency has now set binding criteria for DB Netz AG that it must follow in its notifications of intended changes to or revisions of its network and service facilities statements. These requirements concern the form and the content of the notifications, price lists included.

"We have often found in the past that the notifications from the rail infrastructure companies on intended changes to or revisions of their statements had considerable shortcomings, shortcomings in the extent and the degree of detail of the notification. This made it much more difficult for us to examine the changes. There was a real risk that this lack of clarity would ultimately hurt rail competition", Matthias Kurth, Agency President, declared. "And so we have laid down binding requirements to avoid such problems in the future. Today's decision for DB Netz AG shows the way forward. It also creates legal clarity for all the other infrastructure companies."

Track and service facilities operators have to submit to the Agency intended changes to or revisions of their statements and their rail infrastructure price lists. The Agency examines these changes or revisions within the space of four weeks and can raise objections if it deems them not compatible with rail regulations on access to infrastructure.

Further information on today's decision can be found on the Agency's website.

Sixty Per Cent of Households Have Broadband Access

Kurth: "Germany on the fast track in the broadband sector"

"Competition invigorated by Internet telephony and the cable industry"

According to the President of the Federal Network Agency, Matthias Kurth, Germany is on the fast track as far as broadband coverage in Europe is concerned. "60 per cent of all households use broadband access. This means that as far as broadband growth is concerned, we have meanwhile overtaken all large countries such as France, England, Spain and Italy, and are now way above the European average", stated Mr Kurth during the presentation of the Agency's Activity Report 2008/2009 on the telecommunications sector. "Only smaller Member States such as Luxembourg, Holland and Denmark have a higher per capita broadband ratio."

Broadband market

The development of the broadband market is still characterised by growth although in recent years its drive has lost considerable momentum. In the difficult years of 2008 and 2009 the number of marketed broadband accesses still increased, albeit at a much lower rate than in previous years. In 2008, 3m new broadband accesses were marketed, correponding to 1.6m fewer new accesses than in the previous year. The Agency anticipates a similar rise in absolute terms for 2009. At the end of the first half of 2009 there were 24.1m broadband accesses.

"The levelling growth curve is probably due not so much to the economic crises but due to the fact that demand for broadband accesses is gradually approaching saturation point. Broadband penetration in relation to the number of households already exceeds 60 per cent", explained Mr Kurth. DSL technology remains the pre-eminent technology used for German broadband interconnections. Over 91 per cent of all broadband accesses are based on DSL. The number of broadband accesses based on TV cables will probably increase to 2.4m by the end of this year.

"The increasing attraction of TV cable connections is attributable to rapid network modernisation. Approximately 24m households can use the Internet and VoIP services via the TV cable infrastructure at a reasonable price. The technology offers high bandwidths throughout", Mr Kurth went on to explain.

"Not least because of the high rise in the TV cable providers' customer numbers Deutsche Telekom competitors were more or less largely able to maintain their market share in the overall broadband access market. Since 2007 they have held a share of about 53 per cent. This should be deemed a success, also from the viewpoint of gradually approaching market saturation. The TV cable providers' success on the broadband markets was gained largely at the expense of the alternative DSL service providers, not at Deutsche Telekom's expense."

The gratifying competitive developments on the broadband access markets and in fact in the whole broadband sector are still practically due exclusively to the availability of regulated and voluntarily provided wholesale products. This is why the regulatory focus in the broadband sector is placed on such products. In Germany, access to the local loop, broadband access products, bitstream access and resale constitute four major wholesale product categories. This wide range of wholesale products enables competitors to put business models in place at each level of the value chain. For the access markets access to the local loop is in fact still by far the most important wholesale product, followed much further down the scale by resale and bitstream access.

Investment volumes and telephone line developments

Both Deutsche Telekom AG (DT) and competitors augmented their investments in the telephone line sector. "The investment volume in the fixed network has increased substantially. Whereas in the period 2003 - 2006 annual investments ranged between € 3 and 4bn, the annual investment volumes in 2007 and 2008 rose to € 5bn. Our dependable decisions have contributed to this rise. Setting the right pricing signals created the prerequisites for alternative network operators' investment decisions", emphasized Mr Kurth.

"At the same time, the regulated undertaking was granted adequate rates of return and its special burdens were taken into account, where appropriate. This guarantees that the incumbent operator also has adequate means for the expansion and renovation of its networks. This is documented very impressively by the expansion of VDSL in more than 50 cities,“ highlighted Mr Kurth.

Alternative providers are increasingly in a position to offer customers comprehensive package deals from a single source. This development is reflected especially by the increase in competitive intensity on the market for telephone connections where competitors were able to increase their market share from 13 per cent three years ago to now well over 30 per cent.

Substantial growth rates are also recorded especially in the cable TV infrastructure sector for telephony. Whereas in 2006 only 0.3m speech accesses were implemented by these means, in the past three years that figure has increased nearly eightfold to an estimated 2.4m.

Intensive competition on the mobile market ensures favourable prices

The mobile market is also characterised by intensive competition. Since 2002 the two smaller network operators have managed to increase their market share based on customer numbers from approximately 20 per cent to more than 30 per cent thanks to reasonable and innovative products. The prices for mobile services have dropped considerably in the past few years. This is mirrored, inter alia, by the fact that mobile operators' turnover remained virtually unchanged during the period 2003 - 2008 whereas during the same period outgoing call volumes increased by 145 per cent.

"These are clear signals for a remarkable degree of competition not only with regard to low prices but also especially regarding the quality of high-class services. The high competitive intensity is based on a market structure marked by fairly balanced conditions. In other words, in Germany there is a constellation in which four mobile operators compete with each other where none has a market share greater than 37 per cent", said Mr Kurth.

Since 2008 the mobile customer base has not grown as much as it did in earlier years and is approaching saturation. By the end of the third quarter the number of customers reached 108m which translates into roughly 1.3 SIM cards per inhabitant. However, discounters' customer bases are continuing to grow. Whereas at the end of 2007 only about 12m customers were attributable to this segment, at the end of the first quarter 2009 this segment accounted for more than 20m customers, corresponding to a market share of nearly 20 per cent. Network operators, in particular, reach an ever increasiung number of customers through affiliated companies and secondary brand names offering cheap and clearly structured tariffs.

Whereas saturation effects are becoming apparent in customer numbers, the call volumes handled by mobile means are growing considerably. The number of (outgoing) call minutes doubled in the period 2005 - 2008. This clearly illustrates the increase in fixed - mobile substitution. The proportion of mobile calls of the overall call volume has steadily risen from 14 per cent in 2004 to about 30 per cent in 2008 and has thus more than doubled.

Sevenfold increase in mobile data services since 2005

Broadband is also playing a greater role in mobile communications. More than 15 per cent of all customers meanwhile use data services via UMTS on a regular basis, viz. at least once every three months. Whereas the number of regular UMTS users increased nearly sixfold in the period 2005 - 2008, during the same period the data volume transmitted increased more than fiftyfold. Another substantial increase in the data volume is expected for 2009. Apart from the drop in prices for mobile data use, the large-scale expansion of the UMTS networks and the increase in the availability of suitable terminals will have contributed to the rise in the use of mobile data services.

The Activity Report 2008/2009 may be downloaded from the Agency's web site www.bundesnetzagentur.de.

Postal market offers further opportunities for growth

Kurth: "New mail services will change the market"

The Federal Network Agency today presented its Activity Report 2008/2009 on the postal sector. The annual turnover achieved in the German postal market now totals roughly € 27bn. In 2009 also the postal sector was affected by general economic conditions. However, the economic upturn gives rise to hopes that market players will face more favourable prospects and new growth opportunities.

The market for courier, express and parcel services continued to grow in the past two years and in 2008 totalled about € 17bn. Due to greater competitive intensity, customers are offered a wide range of services.

Competitive conditions in the mail service market have remained unchanged since the market was completely opened up to competition at the beginning of 2008. The 750 primarily small competitors have not been able to extend their business potential in the last few years. Their market share of 10 per cent remained constant in 2008. For 2009, a more bullish market is expected.

The Federal Network Agency was able to ensure continuity on the basis of ex ante price regulation. During the last two years the rates charged by Deutsche Post AG for single domestic letters have remained stable. They will continue to remain stable in the forthcoming year. In view of general price rises, this stability offers consumers direct benefits.

In the next few years the full-scale introduction of electronic mail services is expected to have a far-reaching impact on the letter market. These products which are expected to become available in the near future are also designed for residential customers and will be able to link electronic posting with the delivery of the printed letters. As a variant, a pure Internet letter is envisaged, entailing paperless and at the same time secure electronic conveyance.

"All in all, new products in the letter market offering extra choices will change and stimulate the market. I appeal to the consumers to examine more closely existing possibilities for changing postal service provider. This applies both to residential and to business customers who do not yet take advantage of the opportunities available to them", stated Matthias Kurth, President of the Federal Network Agency.

Federal Network Agency declares DB Station&Service AG's station prices invalid

Kurth: "Pricing system in breach of the discrimination prohibition"

The Federal Network Agency has today determined that the rates levied by DB Station&Service AG are not compatible with the regulations and are therefore invalid. The company now has to draw up non-discriminatory rates and submit them to the Agency for review. The new prices are scheduled to take effect on 1 May 2010.

"Our decision is based on the principle of non-discrimination, anchored in railway law. Any price differentials must be objectively justified. A comprehensive review has shown that the methods DB Station&Service AG uses to arrive at the various components of the stations pricing system are not transparent. They are not derived from the current service facilities statement, nor are they based on clear, objective differentiation criteria, as far as we can see in our review", Matthias Kurth, Agency President, declared.

Thus the pricing system is in breach of the discrimination prohibition, the station prices not being cost-based as set out in the company's statement. The rate levels are not cost-reflective. Hence the costs are not allocated by causation. This results in big differences in the individual federal states in the level of payments the access beneficiaries are required to make to use passenger stations in the same category. Ultimately, in a nationwide comparison, these differences mean that the access beneficiaries are not treated the same", Kurth said.

The review of the pricing system covering 5,400 passenger stations was triggered in particular by numerous complaints from train operators using DB Station&Service AG's stations and having to pay a charge for every train stop. The federal service organisations, for instance the transport associations, had also requested the Agency to look at the pricing system. As they are the ones who organise and fund regional passenger rail services, they are indirectly responsible for a large part of the station charges incurred.

DB Station&Service AG must now submit a concept to the Agency by 1 March 2010 setting out how the charges will be revised and the criteria under which the company will set its rates in future. When it studies this concept the Agency will be particularly concerned with objectively justifiable cost allocation.

The decision will then be published on the Agency's website at www.bundesnetzagentur.de.

Federal Network Agency launches nationwide infrastructure atlas to promote expansion of broadband

The Federal Network Agency has today launched a nationwide infrastructure atlas. This contains spatial data about the infrastructure of currently over 100 companies and institutions, such as data about fibre optic lines, empty ducts, radio towers and masts as well as radio stations. Upon application the Federal Network Agency will, with immediate effect, provide authorised users with information about the infrastructure contained in the atlas.

"The purpose of the infrastructure atlas is to facilitate the use of synergies in the infrastructure deployment. The more efficiently existing infrastructures are shared, the faster can high-speed networks be built, and the sooner will remote areas be connected to the broadband internet, as cost-efficiently as possible. With this project the Federal Network Agency is implementing a key measure of the Federal government's broadband strategy," explained Matthias Kurth, president of the Federal Network Agency.

As authorised users Länder, districts and self-governing towns can now submit to the Federal Network Agency applications for information pertaining to expansion projects. In addition municipalities belonging to a district, telecommunications companies and planning offices are authorised to use the infrastructure atlas. They can also contact the Federal Network Agency via the authorised user responsible for their region.

"In co-operation with the Federal Ministry of Economics and Technology we have spent the last few weeks and months working closely with representatives from industry, the Länder and local umbrella organisations towards this day. We hope that the infrastructure atlas can now also prove on a practical level that the effort has been worth it," Kurth said. "Based on the experiences of the next few months we will then develop the infrastructure atlas further in line with user’s needs. Another objective is to enable authorised users to access the information online."

The Federal Network Agency has set up a toll-free hotline on 0800 811 1777, for questions relating to the infrastructure atlas. In addition comprehensive information for authorised users and answers to frequently asked questions were published on the authority’s website, www.bundesnetzagentur.de.

Federal Network Agency sets out terms and conditions for access to connection infrastructure of Deutsche Telekom AG

Kurth: "Important milestone for more competition in the provision of broadband"

"Clarity for additional investments in the infrastructure"

For the first time ever the Federal Network Agency has set out the concrete terms and conditions according to which Deutsche Telekom AG (DT AG) has to grant other network operators access to its connection infrastructure. At the beginning of August 2009 the fixed line division of Vodafone AG & Co. KG (Vodafone) had submitted an application for a order to the competent ruling chamber of the Federal Network Agency. Negotiations between DT AG and the competitors, which had already begun in the summer of 2008, had not resulted in consensual, voluntary solutions, despite intense efforts.

Following the current decision competitors will now have access to so-called primary connection points. These grey cabinets are special cable distributors which DT AG has erected along roads during the expansion of its broadband network. Furthermore the network operators will have access to cable ducts or, if there is no spare capacity left, to dark fibre of DT AG. This will now enable competitors, too, to lay a fibre-optic-based infrastructure for high-speed broadband use, without the time consuming and costly development and digging works otherwise required - which DT AG has already implemented as part of its VDSL expansion.

The order setting out the arrangement between DT AG and Vodafone specifies the concrete technical and operational modalities according to which DT AG must grant access to its connection infrastructure. According to this network operators can, in future, incorporate their own active transmission technology for the implementation of broadband connections, the so-called DSLAMs, into DT AG’s primary connection points. For this purpose DT AG must grant competitors access to its primary connection points. In addition DT AG must afford network operators the opportunity to lay their own fibre optic lines in the cable ducts and to access the cable ducts for this purpose. DT AG had previously refused both.

On the occasion of the announcement of this decision Matthias Kurth, president of the Federal Network Agency, explained: "The rules set out for access to Deutsche Telekom’s connection infrastructure are another important milestone for more competition in the expansion of the broadband network and thereby for an even better provision of broadband to the end users. We have investigated the matter in great detail before making this decision. This revealed that the issues and obstacles addressed repeatedly during the negotiations about voluntary agreements and even prior to the decision where either non-existent or could be resolved. Furthermore we had to balance corporate and public interests, some of which were in great conflict with one another. With this decision the Federal Network Agency has now set out regulations, during ruling chamber proceedings lasting only four months, which the market players were either not able or willing to agree upon voluntarily during long negotiations."

"With this decision the Federal Network Agency proves to be, once again, a major driving force behind the broadband expansion in Germany, thus fulfilling its responsibility to employ regulation in order to ensure more competition in the interest of end users. The regulations now set out in the relationship between Deutsche Telekom and Vodafone serve as a model for other regulatory proceedings still pending. I hope that in future there will also be voluntary agreements on the basis of our decision. Numerous companies now have clarity for their investment plans and I hope that the expansion plans of the competitors can now also be implemented without delay," Kurth emphasized.

In another decision dating back to the summer of 2007 a general obligation had been imposed on DT AG to open their cable ducts between the main distribution frame and the cable distributors, and in case access to the ducts was not possible for technical reasons or lack of capacity, competitors had to be granted access to dark fibre. Furthermore that decision had clarified that DT AG also has to grant access to its cable distributors. DT AG's law suit against this decision has so far been unsuccessful.

The remuneration which Vodafone has to pay to DT AG for using the access services now ordered will be determined in separate proceedings about the regulation of charges, based on cost-efficient service provision. This benchmark for charges had also been stipulated in the regulatory order passed in mid-2007.

Investment budgets for grid connection of two offshore wind parks in the North Sea approved

Kurth: "Important contribution to investment security in renewable energy"

The Federal Network Agency took important decisions on supply and investment security today by for the first time approving investment budgets for the grid connection of two offshore wind parks in the North Sea. At issue were two projects of transpower stromübertragungs gmbh.

"With our approval of the investment budgets we have created a framework contributing substantially to a high degree of investmentand planning security. The timely integration of offshore wind parks is one of the important requirements for ensuring renewable energies are a success. The Federal Network Agency is equally committed to the aims of the Energy Act and the federal government's climate goals", explained the President of the Federal Network Agency, Matthias Kurth.

In view of today's approvals, transpower stromübertragungs gmbh can adapt its revenue cap, specified by the Federal Network Agency as part of its incentive regulation, by the capital costs of the approved investment projects from next year on.

"The publication of our position paper on the integration of offshore wind power projects already constituted one building block towards a swift, efficient and non-discriminatory implementation of offshore wind parks. Especially at times when climate goals are the subject of controversial discussions we feel that with our decisions it is important to set further positive signals in relation to investment security in renewable energy and to seek a sensible balance between the conflicting interests of low network charges on the one hand and necessary transmission investments for the dispatch of renewable energy on the other. The transmission system operators are now in a position to deal adequately on a safe basis with the system requirements arising from the desired promotion of of renewable energy", according to Mr. Kurth.

Under the Incentive regulation Ordinance, transmission system operators may apply for investment budgets for major projects. This may be the case where investments are needed to integrate new power plants into the system and to arrange for the transfer of energy from renewable sources, particularly by means of the connection of offshore wind parks. Grid access for such wind parks can cause investments costs in the tens of millions. In the years 2008 and 2009 the Federal Network Agency received about 480 applications for the approval of investment budgets totalling approximately € 13bn. The majority of the investments applied for worth roughly € 11bn were earmarked for the power sector. Of these, the larger part amounting to about € 9bn involved transmission system operators, and again roughly € 3bn of that sum were related to offshore projects.

Postal rates for 2010 approved

Kurth: "Inland letter postage rates will remain stable"

The inland letter postage rates of Deutsche Post AG (DP AG) will not change next year. As part of its price cap procedure the Federal Network Agency approved DP AG's rates for letter items weighing up to 1,000 grams today. DP AG's application had not envisaged an increase in the postage for inland letter mail. For international mail some rate increases were applied for in connection with certain rarely used products.

"The inland letter postage rates will continue to remain stable in 2010. This means that the prices have remained unchanged in the past twelve years. In 2003 the rate for a standard letter was actually lowered by one cent and that for postcards even by six cents. But consumers will have to get used to the fact that they will have to pay more for certain international mail items in 2010", explained Matthias Kurth, President of the Federal Network Agency, on the occasion of the decision's announcement in Bonn.

DP AG has refrained from fully exploiting its freedom for manoeuvre regarding rate increases and has merely applied for a higher rate for certain international mail items by up to about half of the increase possible. The Federal Network Agency has sanctioned DP AG's request.

The price cap formula was redefined in 2007 and will apply until the end of 2011. The formula specifies that DP AG's rate of productivity growth must increase annually by 1.8 per cent. The preceding year's inflation rate as determined by the Federal Statistics Office is set against the rate of productivity growth. This may then result in price adaptations.

The Federal Network Agency's consent does not cover the rates for conveyance services paid for minimum mailing requirements of 50 letter items. Since the abolition of DP AG's exclusive licence on 1 January 2008, the rates payable for these conveyance services, which are mainly used by business customers, no longer require ex ante approval. However, they are subject to ex post control of abusive practices by the Federal Network Agency.

This approval remains valid until 31 December 2010.

Proposed changes to the network and service facilities statements rejected

Kurth: "Rights of railway undertakings strengthened"

The Federal Network Agency has issued a decision rejecting the main changes proposed by DB Netz AG, ie removing central guidelines from its network and service facilities statements. The guidelines are a reliable basis for railway undertakings (RUs), in particular for planning each train movement and their long-term investment in staff and rolling stock. The Agency's decision does not allow DB Netz AG to remove the guidelines in question from its network and service facilities statements.

"With this decision, the Agency is strengthening the rights of railway undertakings by ensuring that all market players have the same information on technical enhancements that are likely to influence competition", Matthias Kurth, the Agency's President, said.

DB Netz AG's network and service facilities statements describe the legal, operational and technical requirements for the use of railway lines and service facilities. All of the requirements are included in the "group guidelines" (Konzernrichtlinien) of DB Netz AG which comprise several thousand pages and stipulate detailed rules for operations.

DB Netz AG planned to delete many of these guidelines from its network and service facilities statements. This would have allowed significant changes to be made at short notice, depriving the RUs of planning certainty and making it more difficult for the Agency to carry out effective investigations. For this reason, the Agency approved the removal of only minor parts of the guidelines which do not affect the RUs in any way.

As a component of the network statement and the service facilities statement, the guidelines and any changes to them must be published at least one year before the trains run (annual timetable change in December). Before publication, the RUs must have the opportunity to submit their comments on the changes and the Agency must be able to examine the comments. Such examination prevents changes that would disadvantage individual RUs.

Federal Network Agency wins summary proceedings on distribution frames

Kurth: "Rapid headway now to be made with broadband expansion in rural areas"

The administrative court (VG) in Cologne has rejected Deutsche Telekom's urgent court application with which DT had endeavoured to evade the obligation imposed on it by the Federal Network Agency to install distribution frames. DT had applied for provisional court protection from the Agency's order which was now denied to it by the VG.

The President of the Federal Network Agency, Matthias Kurth, welcomed the court's decision: "We now have adequate clarity and certainty for all competitors willing to invest in order to reach uncharted territories via distribution frames. I hope that DT will now implement the Agency's decision on distribution frames in full without delay. At the same time I appeal to DT by these means to join forces with the competitors to press ahead with the provision of high-speed Internet access in those areas in which it is not yet or only inadequately available, thereby implementing an important aspect of the federal government's broadband initiative."

At the beginning of March this year the Federal Network Agency had announced its first decision easing DT's competitors efforts to develop and furnish uncharted territories with fast Internet access. Under this decision DT must give competitors access to the local loop (LL), also known as the last mile, at distribution frames as well. The possibility of access to the LL at a distribution frame reduces the length of the cables between the provider's active technology and the end customer, enabling Internet coverage with a high bandwidth. Furthermore, bundling the requisite DSL technology at a single central point renders development of rural areas much easier. In particular, it is possible to dispense with the connection of every individual cross-connection point and associated large-scale civil engineering.

Federal Network Agency publishes numbering concept for the first time

Kurth: "Greater planning security and enhanced consumer protection"

Today the Federal Network Agency published a numbering concept for the first time. The concept analyzes the developments made in the field of telecommunications and shows the changes that are intended in the field of numbering. All number types are taken into account and all developments are put in an overall context. The structure of the concept is arranged according to the requirements stipulated in the Telecommunications Numbering Ordinance.

"The submitted concept provides greater planning security for telecommunication network operators and telecommunication service providers. At the same time, it also means enhanced consumer protection", Matthias Kurth, President of the Federal Network Agency emphasized upon publication of the numbering concept.

A modification to regulatory requirements is intended for several number types. For value-added service numbers, for example, tighter controls will be carried out prior to number assignment by the Federal Network Agency on whether unlawful use is to be expected. Management of mobile short codes will remain the responsibility of mobile communication providers, but the aim is a generally applicable legal framework. This is intended to facilitate the marketing of services provided via mobile short codes by regulating, for example, that a service provider can use a number assigned to it by a network operator in any mobile network. Consumer protection is enhanced by the intended exclusion of so-called chain assignment, which facilitates the determination of the service provider in the case of disputes.

The 2009 numbering concept is published on the Federal Network Agency's website at www.bundesnetzagentur.de. A numbering concept will be published on an annual basis in the future.

Federal Network Agency publishes framework conditions for national infrastructure atlas

Kurth: "Fair compromise between the legitimate interests of all parties involved"

The Federal Network Agency has today published the framework conditions for the use of the national infrastructure atlas. These framework conditions specify how the data for the infrastructure atlas will be transmitted in future and who will be authorised to use the data. The conditions are the result of a hearing conducted by the Federal Network Agency this summer and of numerous talks with representatives from companies, associations and the Länder.

"With these framework conditions we have created an important prerequisite to ensure that the use of the infrastructure atlas can still start this year," explained Matthias Kurth, President of the Federal Network Agency. "In particular the security concerns expressed in the hearing were accommodated by ensuring for example that access to the data is restricted to representatives of the Länder, districts and urban disctricts."

"The framework conditions present a fair compromise between the legitimate interests of the parties involved. On a related note I would like to thank all companies that have already participated in developing the infrastructure atlas, thereby making an important contribution to the expansion of broadband, particularly in rural as well as in urban areas, too. I now appeal to the remaining companies to also make their data available to us as soon as possible," said Kurth.

In order to ensure an even greater degree of legal certainty with regard to the data provided, companies can conclude an additional agreement with the Federal Network Agency, if desired. For this purpose the Federal Network Agency has cooperated with industry representatives and drawn up a sample agreement, which was also published on the Agency’s website today.

The infrastructure atlas is part of the Federal government’s broadband strategy, which aims to significantly expedite the provision of broadband connections for the population. Using synergy effects for the expansion of broadband, the provision of broadband connections for the population is to be improved. In the initial phase the Federal Network Agency will therefore give priority to pplications for the use of the infrastructure atlas submitted by regions with socalled "white spots". Authorised users will receive information on whether there are fibre optic lines, ducts, network nodes, radio links or transmitter sites in their region, which can, in principle, be shared for the development of new broadband networks, and who the owner of this infrastructure is.

From December 2009 authorised users can submit an application for use of the atlas to the Federal Network Agency in order to subsequently receive the desired data. In consultation with the owners of the infrastructure, the authorised users of the atlas are to be given the opportunity, in a further step, to also access the data online.

The framework conditions are available on the website of the Federal Network Agency, www.bundesnetzagentur.de.