A Deutsche Telekom (DT) request to hike local loop unbundling (LL...
A Deutsche Telekom (DT) request to hike local loop unbundling (LLU) fees has competitors seething. Last week DT filed a motion with telecom regulator BNetzA seeking 13% more a loop monthly to cover higher personnel costs, lawyer Axel Spies…
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said Tues. The incumbent said the boost would encourage competitors to build out infrastructure of their own. If approved, the new rate will be 12.06 ($15.69). The LLU charge in Germany expiring in the spring is 10.68 -- already higher than in some EU countries, Spies said. “Given the international benchmarks for this important fee, the price increase should be rejected,” Spies said on behalf of the German Competitive Carriers Assn. (VATM). DT is wrong to cite personnel costs, because its staff includes former govt. officials whose positions are protected by law and members of strong trade unions, he said. As the telecom industry becomes leaner, DT shouldn’t be allowed to burden rivals with the expense of a failed personnel policy, Spies said. For them, the monthly LLU fee is the “mother of all charges,” he said: An increase would lead to price rises on telecom services across the board. The cap in the recent AT&T/BellSouth merger agreement for access to the local loop was equal to about 9 for a much larger territory than DT’s, Spies said.