Telecommunications network expansion: Financial expert demands monthly compensation of 15 euros for slow internet

Telecommunications network expansion: Financial expert demands monthly compensation of 15 euros for slow internet

According to a report by www.br.de, The Bundestag is currently revising the Telecommunications Act in order to accelerate network expansion - we are officially talking about the “TK Network Expansion Acceleration Act”. The Federal Association of Consumer Organizations (vzbv) is now calling for an increase in the minimum bandwidth for the right to supply and a flat-rate compensation of 15 euros per month if the internet is too slow.

The chairwoman of the vzbv, Ramona Pop, explains the demand for flat-rate compensation of 15 euros per month for consumers whose actual range deviates significantly from that contractually guaranteed. This amount should be deducted from the monthly tariff costs until the discrepancy is resolved. According to vzbv, the existing price reduction right is difficult to enforce in reality due to a complicated measurement procedure and the non-transparent communication from network providers.

The measurement process to determine the deviation from the contractually guaranteed bandwidth is time-consuming and includes a “measurement campaign with 30 measurements on three different calendar days,” as explained by the Federal Network Agency. Even when the results are presented, consumers often receive little or no discount. The introduction of a legally fixed flat rate could create incentives to quickly resolve network problems for the benefit of customers.

The vzbv also calls on the Federal Network Agency to finally connect underserved areas to the broadband network and refers to the minimum bandwidth of 15 megabits per second per household guaranteed by the federal government as part of the “Telecommunications Minimum Supply Ordinance”.

The introduction of a flat-rate compensation of 15 euros per month for slow internet could have a significant impact on the telecommunications market. Network providers could be forced to invest more in network expansion in order to guarantee the contractually guaranteed bandwidths in order to avoid the costs of claims for damages. This could ultimately lead to faster expansion and improved quality of broadband for consumers. However, costs for network providers could increase, which in turn could affect tariffs and contract conditions for consumers.