Telecommunications Act 2024: How owners are preparing for the TKG amendment

The TKG amendment was set up in 2021 and will take effect from July 01, 2024. This will be accompanied by changes for owners and tenants. How can you prepare? Find out here!

New telecommunications law cheat sheet for owners

Technologies are developing rapidly. The need for accessible Internet is increasing. No matter where we live: We make a claim to the fast use of telecommunications services. These include e-mail, streaming or telephony, for example. To enable this access, the Telecommunications Act (TKG for short) plays a crucial role.

But what does it actually regulate? What changes are coming in 2024? And how can tenants and owners prepare themselves optimally? We will inform you about this now.

Cheat sheet on the Telecommunications Act (TKG)

2021 there was an TKG amendment that will take effect as of July 1, 2024.. This amendment brings with it a number of innovations that affect various aspects of the Telecommunications Act: For owners, it may now mean that contracts are terminated and operating costs are re-billed.

Your cheat sheet on the new telecommunications law

This is your cheat sheet. Here you will find the most important aspects of the TKG amendment at a glance: 

  • The Telecommunications Act is updated on a regular basis. The last leveling was rolled out in December 2021. To enable owners with existing buildings to comply with the new regulations, there is a transition period until June 30, 2024.
  • As of July 01, 2024, costs for cable TV can no longer be allocated by landlords to tenants in operating cost statements. (The ancillary cost privilege no longer applies).
  • Owners' associations must jointly decide whether contracts with network providers should continue or be terminated.
  • Landlords and tenants can make individual additional agreements. They can increase the cold rents in order to continue to settle collective collections. 
  • With the amendment to the Telecommunications Act (TKG), the "right to fast Internet" for tenants will also take effect in 2024. As a property owner, you should invest in the expansion of broadband cable. This will increase the future rentals the value of your property.

What does the Telecommunications Act regulate?

The Telecommunications Act can be regarded as a set of rules for providers of telecommunications services can be understood.

  1. First, it defines what is considered a telecommunications service in the first place. Currently, for example, it includes telephony, Internet access, e-mail and text messaging.
  2. Second, it defines the relationship between network providers and consumers. For example, companies such as Telekom or Vodafone must make contract conditions transparent. At the same time, they must make their telecommunications networks accessible to other cable providers.

Thus, on the one hand, the law ensures consumer protection. On the other hand, it drives competition in the market. The aim is to, to promote investment in and innovation of the digital infrastructure.

Accessible & mobile: Why the Telecommunications Act is being modernized

The telecommunications industry has made enormous progress in recent years. Particularly in the area of wireless communications and broadband expansion. This has meant that the regulations of the TKG prior to 2021 were no longer up to date. The leveling of the Telecommunications Act now makes it possible for companies to use the German network rollout to be future-proof.

The TKG is therefore not a law that is set in stone. On the contrary, it is regularly updated and amended to keep pace with rapid developments. Only in this way can services such as access to the Internet meet consumers' needs. 

Who is affected by the new Telecommunications Act?

As owner of a residential property, it has been your responsibility to ensure that tenants have access to high-quality telecommunications services. You are responsible for negotiating appropriate contracts with providers and companies - and have been able to pass on corresponding pass on payments to tenants via the utility bill.

Thus came Tenants usually come into contact with the TKG through the utility bill. Are you a tenant and have paid the cable connection annually? Then you are also affected by the TKG amendment.

Both parties - tenant and owner - should therefore inform themselves in good time. More precisely: now. To prepare yourself in the best possible way, simply continue reading our article.

TKG amendment: What changes will it bring in 2024?

Now we get into the details.

Until now, owners and owners' associations could negotiate major contracts with cable providers. One contract for telecommunications networks could therefore cover the supply of an entire residential property. This was accompanied by preferential terms, the payments of which could be passed on to tenants. This is the so-called ancillary cost privilege - which will cease to apply in 2024 with the new Telecommunications Act. In the coming year, the costs of cable connections may no longer be passed on to tenants as a lump sum. As a result, many owners will terminate current contracts. In the future, tenants will have to find their own contracts and decide which channel they want to use to watch TV, for example.

Of particular interest is the Adjustment of the service charge privilege for owners' associations.Have you concluded a joint contract for the property? Then it must also be decided jointly whether this should be dissolved by July 2024. Owners' associations can therefore a special right of termination until June 30, 2024. to terminate the contract.

The new Telecommunications Act also strengthened the right to high-speed Internet access for tenants. This means: Get to grips with your building's infrastructure. Does it already have broadband cable connections such as fiber optics? If not, you can also formulate a rent increase with corresponding expansion costs (provision fee).

new telecommunications act

The ancillary cost privilege no longer applies

In order to modernize the digital infrastructure, the Telecommunications Services Act will abolish the service charge privilege in July 2024: citizens are now increasingly using streaming services instead of cable TV. As of July 1, 2024, cable costs borne by landlords can no longer be apportioned to tenants on a flat-rate basis. By agreement, they may only be charged to those who wish to continue using these services. The aim is to ensure greater fairness in apartment buildings and create transparency in the allocation of costs in owners' associations.

After the new TKG comes into force, is it permissible for the building owner or landlord to offer collective collection for the purchase of TV signals? Yes - if you conclude supplementary agreements with your tenants.

Right to fast Internet

The right to fast Internet is intended to drive the expansion of fiber-optic networks. This gives you as a property owner the opportunities to renovate your renovate your property (in terms of energy). At the same time, corresponding measures can be compensated for by means of a modernization rent increase. However, the costs of modernization can only be passed on to tenants for a limited period of time and are capped at a maximum of €60 per year and €540 in total, spread over a maximum of five years.

By promoting the expansion of broadband networks, the amendment to the Telecommunications Act will drive investment in 5G technologies and thus the IoT (Internet of Things). This not only enables higher transmission speeds, but also more stable Internet connections. Telecommunications services are increasingly being made accessible to end users (also) on the move. mobile. It goes without saying that improved connectivity is now essential.

How do owners prepare themselves optimally?

The Telecommunications Act has already been leveled in 2021. For existing properties, there is a transitional period until June 30, 2024.. If you own property, you should therefore deal with the new provisions of the TKG now. Here's how to prepare for the moment when the ancillary cost privilege no longer applies:

  • Deal with existing contracts from cable network operators.
  • What are the provisions for cable costs in your leases?
  • If you do not want to pay for telecommunications services out of your own pocket in the future, cancel current contracts in good time. If you miss the deadline, your contracts with cable and broadband network providers will continue - but are no longer apportionable.
  • If you, as a landlord, are drawing up new contracts with cable network operators, the amendment to the Telecommunications Act will have to formulate voluntary use and a single-payment collection for tenants.
  • WEG management: There is still the possibility of concluding multi-user contracts with suppliers. Instead of then passing these on to tenants via the operating costs, you can conclude supplementary contracts via an increased cold rent.

NoteAs the owner, inform yourself in good time and make the necessary adjustments. Contact your property management to inform the tenants about the new regulations.

3 takeaways from the TKG amendment

We have now gone through in detail the most important innovations that were adopted with the Telecommunications Act 2021. If you have further questions, the Federal Network Agency can provide further information. Would you like to address specific questions to someone who knows the real estate industry? Then address them to your property management company. Within our real estate management at EichenGlobal , we are happy to provide our owners with the following key facts about the TKG amendment to the hand:

  • Owners' associations: What is the current cost allocation? Discuss calculations for 2024 in good time.
  • The 30.06.2024 is the cut-off date. The termination of contracts can drag on a bit - deal with yours in good time and take a look at the rental agreements. Which regulations regarding the cost allocation are stipulated here?
  • Cancel your contract with the network provider and find out about alternatives in good time. Contact your administration to take advantage of expansion potential and profit from it. Work towards a sustainable increase in the value of your property.