Deutsche Telekom (DT) sought regulatory approval Tues. for a 90% ...
Deutsche Telekom (DT) sought regulatory approval Tues. for a 90% hike in the one-time fee it charges rivals for an unbundled loop or line-sharing connection, said Axel Spies, a lawyer representing the German Competitive Carriers Assn. (VATM). “Given that…
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there’s almost no competition from broadband cable or from alternative access technologies such as satellite or powerline in Germany, these charges are crucial for new customers that obtain DSL and other services via unbundled loops,” he said. DT competitors say nothing justifies a 90% rise and that the fee should fall at least 30% due to the telco’s efficiency gains, he said. VATM also worries about reports that DT plans to cut the price for its DSL flat-rate package for Internet plus fixed-line calls in Germany to 35-50 per month as of June 1, Spies said. If that occur and regulator BNetzA grants the connection fee rise, he said, rivals will be caught in a “price squeeze” between DT’s lower DSL charges for its own end-user services and higher pass-through fees that competitors providing their own DSL services must charge customers to be hooked up via line-sharing or unbundling to DT’s network, Spies said. BNetzA has until July 29 to act. Consultant Analysys has said connection charges are up to 60% higher in Germany than elsewhere in Europe, he said.