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(Adds comments from Deutsche Telekom and ECTA; refiled tocorrect link in second paraqgraph to a previous story)
* Deutsche Telekom wants to upgrade copper network
* Competitors say the plan reduces competition
* German regulator BNetzA approved plan in November
* EU Commission and BNetzA have three months to findsolution
By Julia Fioretti
BRUSSELS, May 10 (Reuters) - The European Commission hasopened an in-depth investigation into Germany's approval ofDeutsche Telekom's plan to use its existing copperwiring to connect homes and offices up to its high speed fibreoptic broadband network because it could harm competition.
Germany's telecoms industry regulator BNetzA approved inNovember Deutsche Telekom's plan to use vectoring technology todouble the bandwidth of the existing copper lines running from afibre-connected central distribution point to give downloadspeeds of up to 100 Mbps instead of running fibre all the wayinto homes and offices - known as 'fibre to the premises'(FTTP).
However that caused an outcry from competitors, such asVodafone, who argued that the plan would harmcompetition.
Vectoring technology only works when applied to a wholebundle of copper cables, meaning individual lines cannot bephysically unbundled to give access to alternative operators.
Rivals would get "virtual" access to the copper 'local loop'network, but the Commission said this arrangement would deny thedegree of control necessary to differentiate their retail offersfrom those of Deutsche Telekom.
The Commission said that the plan appeared to have a"considerably restricting effect on alternative operators whobuy access from Deutsche Telekom" and would discuss it with theGerman regulator over the next three months.
If no solution is found at the end of that period theCommission could ask the German regulator to withdraw or amendits decision.
"Our aim is to allow both a network upgrade and high qualityaccess for competitors," said Guenther Oettinger, the EU'scommissioner for telecoms.
Vectoring technology is an intermediate solution and theCommission says it has concerns that Deutsche Telekom's plancould have an impact on incentives for fibre investment over thelonger term.
However, Deutsche Telekom said that it expected the Germanregulator's decision would eventually be upheld in Brussels.
"Without vectoring many rural areas will remain in themonopoly of cable providers and will be excluded fromcompetitive offers," the company said in a statement.
Former national network monopolies like Deutsche Telekom andBT in the UK say the application of new copper-basedG.fast technology is a far cheaper way to get more people hookedup sooner to high speed broadband than aiming to run new fibreinto every building.
ECTA, the European Competitive TelecommunicationAssociation, which represents challenger operators such asVodafone and TalkTalk, said it welcomed theCommission's investigation.
"ECTA has very serious concerns regarding the consequencesof this measure which, if implemented, would jeopardisesustainable competition by wiping out challenger operators fromthe market and obstructing the path of their fibre investments,"said Gijs Phoelich, Chairman of ECTA. (Additional reporting by Harro Ten Wolde in Frankfurt; Editingby Philip Blenkinsop, Greg Mahlich)
