The Danish Competition and Consumer Authority (DCCA) has launched a market consultation on draft commitments submitted by five fiber network companies that hold strong market positions in parts of Denmark. The commitments are intended to address identified competition concerns in areas where individual network operators control access to fiber infrastructure for households and small businesses.
According to the Authority, in many local areas a single fiber network owner provides the physical connection to end users. This gives the network owner significant control over which internet service providers can offer services via the network and over the price charged for access. To safeguard effective competition, such network owners are subject to sector-specific regulation, including price caps on access fees.
Deputy Director General Jacob Schaumburg-Müller emphasised the importance of the regulatory framework, stating:
“Our regulation of fiber network companies has an impact on consumers and small businesses. We are thus creating the framework for competition to continue in the coming years to deliver the best internet solutions, both in terms of availability, quality and price.”
Companies and Scope of the Commitments
Six fiber network companies were invited to submit commitments to remedy the identified competition concerns. Five of these—Aura, BornFiber, EnergiFyn, Fibia and Norlys—have presented draft commitments that the Authority considers suitable for consultation. Together, these companies account for more than half of all fiber connections in Denmark, with the affected areas spread across the country.
The sixth company also submitted draft commitments, but the Authority concluded that these would not sufficiently address the competition problems identified.
The draft commitments grant internet service providers the right to rent access to the fiber network infrastructure and set out the conditions under which such access must be offered. A key element of the drafts is the introduction of price caps for the rental of fiber access for the period 2027–2031.
Price Caps and Cost Factors
The proposed price caps are generally higher than those applied during the current regulatory period (2021–2026). According to the Authority, this increase reflects several factors, including general price inflation affecting network equipment, higher permitted returns on invested capital due to rising interest rates, and the need to cover additional costs related to securing fiber networks against risks such as cyberattacks.
The price caps are not uniform across all companies, as underlying costs vary depending on factors such as population density in the regulated areas.
Regulatory Framework and Next Steps
The regulation of fiber networks in Denmark is based on the Telecommunications Act, which implements EU directives aimed at promoting competition in the telecommunications sector. Every five years, the DCCA, acting as an independent telecommunications authority, must assess where competition problems exist and decide whether regulatory intervention is required.
Where competition concerns are identified, fiber network operators may submit commitments to resolve them. If adequate commitments are not offered, the Authority may impose binding obligations. The draft commitments currently under consultation are not legally binding and may be revised in light of feedback from market participants before a final decision is adopted.
The Authority relies on a dedicated techno-economic model to calculate price caps, taking into account the costs of expanding and operating telecommunications networks in Denmark. This model was also used in the previous regulatory period.
Responsibility for telecommunications competition regulation was transferred to the Danish Competition and Consumer Authority on 1 October 2025, having previously been exercised by the Danish Business Authority.