German regulator levels field for Internet rivals
June 16, 1999 11:10 AM
By Neal Boudette, European Telecommunications Correspondent
BONN, June 16 (Reuters) - Germany's telecommunications regulator on Wednesday levelled the playing field for Internet providers competing with former phone monopoly Deutsche Telekom AG
Responding to complaints from America Online Inc AOL and other Internet companies, he ruled that Telekom must offer them telephone connections at the same price it charges its own T-Online subsidiary.
"This decision makes sure that in the most important telecommunications market of the future there is a low, discrimination-free price," Klaus-Dieter Scheuerle, president of the Regulatoring Authority for Telecommunications and Post, said at a news conference.
Rivals have complained that Telekom was giving T-Online favourable connection prices. The RTP agreed, saying T-Online was getting rebates on local phone call rates that were not available to its competitors.
T-Online now charges its users a total of six pfennigs per minute -- three pfennigs per minute in Internet access charges and another three pfennigs per minute in phone charges.
AOL customers pay a per-minute access charge to AOL, and up to eight pfennigs per minute to Telekom for the phone call.
Scheuerle said Telekom would be allowed to charge AOL and other rivals 2.6 pfennigs per minute for the telephone connection. That gives them the same rate T-Online pays, and will allow them to provide a complete offering including access and phone charges.
"We think this decision is quite a major success," said Frank Sarfeld, a spokesman for AOL Germany.
The ruling should clear the way for AOL to offer more aggressive price plans in Germany. The company wants to offer a flat monthly fee for unlimted online access.
"Now we have a clear base for developing an offer," Sarfeld said. "We always wanted to have a similar (connection) price as T-Online. Now we know what it is."
A Telekom spokesman told Reuters the company would adjust its prices in accordance with the decision, but did not expect that to have an impact on revenue.
"Most important is that the prices will not change for three million T-Online customers," the spokesman said.
((Frankfurt Newsroom +49 69 756525, frankfurt.newsroom@reuters.com))
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