Deutsche Telekom responds to competition with cut-price calls

28 Feb 2005

As from tomorrow, Deutsche Telekom is lowering its local and long-distance fixed line tariffs and offering, for the first time, a flat rate tariff for high volume callers. As part of the pricing overhaul, the company says it is also simplifying charges by reducing the number of call price categories to four. The changes to its pricing structure are in response to the fierce competition being faced by its domestic fixed line arm T-Com in the two years since local loop unbundling (LLU) legislation came into force in Germany. Last week the regulator, RegTP, reported that Deutsche Telekom’s rivals accounted for 33% of the local telephony market in 2004, up by eight percentage points over the previous year. Call-by-call carrier selection has been in effect in the country since April 2003, and full carrier pre-selection since July that year.

Germany, Deutsche Telekom (DT)