DT rivals call for 25% cut on LLU fees

26 Jan 2009

Four of Germany’s alternative operators have demanded a 25% reduction in Deutsche Telekom’s (DT) local loop unbundling (LLU) fee. Hansenet, Telefonica Germany, Versatel and QSC have sent a proposal to the country’s telecoms regulator, the Federal Network Agency (FNA), to lower the fee from EUR10.50 (USD13.64) a month to EUR7.87. In a joint statement released on Friday, the four operators announced that the price cut would reduce their costs by at least EUR1.2 billion over the next five years. According to the proposal, the cost savings would be invested in the expansion of the rival operators’ existing broadband infrastructure, particularly in rural areas. The announcement comes in response to last week’s proposal by DT to increase the monthly fee to EUR12.90 a month to help finance a new high speed broadband network. The FNA has until the end of March to consider both proposals, with the new fee to be introduced by DT at the start of April 2009.