To: HG who wrote (46032 ) 3/17/1999 8:08:00 AM From: Glenn D. Rudolph Respond to of 164684
Bertelsmann urges Telekom to cut Internet charges FRANKFURT, March 17 (Reuters) - German's Bertelsmann AG <BTGGg.F> media group called on Deutsche Telekom <DTEG.F> on Wednesday to cut its phone line charges for access to the Internet. In an interview with the daily Sueddeutsche Zeitung, Bertelsmann's multimedia chief, Klaus Eierhoff, said Telekom should charge Internet users a flat monthly rate for the telephone connection instead of a per-minute charge. In the United States, Internet users are charged a flat monthly rate which works out around 30 marks ($16.85). The move is the latest in a series of demands for change and legal challenges by competitors to Telekom's Internet business. The Hamburg district court last week blocked a move by Telekom's Internet unit, T-Online, to bundle the price it charges customers for online access. T-Online had proposed charging only six pfennigs per minute for the service, combining both per-minute charges for access to T-Online and the local phone call. The German unit of America Online Inc <AOL.N> complained the pricing plan would give Telekom "unjust advantages" over online rivals. To connect to AOL or other online services in Germany, users have to pay eight pfennigs per minute in phone charges alone. They also pay monthly or per-minute fees to AOL or their Internet service providers. AOL has also called on Telekom to introduce a flat rate, which it says would would make the per-minute charge for access to T-Online more easily comparable to the rates charged by rival Internet providers. "If he (Deutsche Telekom Chief Executive Ron Sommer) wants to get into the Internet hall of fame, please introduce a flat rate," AOL Germany spokesman Frank Sarfeld told Reuters.