Thursday, April 28, 2005

Germany Trims Local Loop Rental to EUR 10.65

Germany's Regulatory Authority for Telecommunications and Posts (RegTP) trimmed the monthly price for a competitor to rent a local loop from the incumbent by another 9.75%. The monthly price had been EUR 11.80 and is now EUR 10.65. Deutsche Telekom had applied for a price of EUR 17.40. RegTP said it based the new price on a cost model and an international tariff comparison. The move is expected to bolster local competition for broadband services.

"With our new decision we are well amongst the average level of countries using the same cost measures, also within the framework of European comparison. The new local loop price - as an appropriate and cost-based price - is a guarantee for long-term and stable competition on the German telecoms market," said RegTP's Matthias Kurth.