Feeds

Deutsche Telekom cuts broadband tariffs

EC antitrust probe does the trick

  • alert
  • submit to reddit

Boost IT visibility and business value

Deutsche Telekom has agreed to cut the charges rivals must pay to access its local telephone network or local loop. The decision is in response to European Commission antitrust charges which resulted in the company being fined €12.6 million last year. German DSL outfit QSC complained about unfair fees and Deutsche Telekom paid the price.

DT’s concession will lead to significant reduction in the line-sharing fee that competitors pay the company for shared access, in particular for DSL lines.

Despite a 2001 EU directive that DT must give competitors shared access to its local loops, only a few rivals in Germany found it profitable to avail themselves of this. No company entering the fray has been able to reach any significant market position.

Deutsche Telekom is the dominant supplier of broadband access in Germany, both wholesale and retail. DT had 4.1m broadband lines at the end of 2003 compared to a mere 500,000 for rival operators - few of them based on line sharing.

"We believe that competition between operators is the best means for bringing the overall prices down," said EC competition commissioner Mario Monti.

Despite these developments, BT still intends to make broadband a mass market in Germany and attract at least ten million DSL customers by 2007. ®

Seven Steps to Software Security

More from The Register

next story
Scotland's BIG question: Will independence cost me my broadband?
They can take our lives, but they'll never take our SPECTRUM
Bring back error correction, say Danish 'net boffins
We don't need no steenkin' TCP/IP retransmission and the congestion it causes
Auntie remains MYSTIFIED by that weekend BBC iPlayer and website outage
Still doing 'forensics' on the caching layer – Beeb digi wonk
NBN Co adds apartments to FTTP rollout
Commercial trial locations to go live in September
Samsung Z Tizen OS mobe is post-phoned – this time for good?
Russian launch for Sammy's non-droid knocked back
Telstra to KILL 2G network by end of 2016
GSM now stands for Grave-Seeking-Mobile network
Seeking LTE expert to insert small cells into BT customers' places
Is this the first step to a FON-a-like 4G network?
What FTC lawsuit? T-Mobile US touts 10GB, $100 family-of-4 plan
Folks 'could use that money for more important things' says CEO Legere
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.