FNA cuts DT last-mile fee, sets new mobile termination fees

1 Apr 2009

Germany’s telecoms regulator, the Federal Network Agency (FNA), has cut the price that incumbent telco Deutsche Telekom (DT) can charge rivals for using its lines connecting homes and businesses to the local telephone exchange, known as the ‘last-mile’. According to Reuters, the regulator has lowered the price, which is reviewed every two years, by 2.9% from EUR10.50 (USD13.94) to EUR10.20. DT has criticised the ruling, stating that it has left it no foundation to invest in the expansion of its services to rural areas, and arguing ‘urgently needed funds for investments in broadband expansion will be abolished.’ The incumbent had wanted to increase the access price for its eight million connections to its local loop to EUR12.90. The new fee will expire on 31 March 2011.

The FNA has also set new mobile terminations fees – the rate that operators charge for calls made to their networks from those of rivals. The new rates are EUR0.0659 per minute for Vodafone and T-Mobile networks and EUR0.0714 per minute for E-Plus and O2, down 16% and 19% respectively. According to TeleGeography’s CommsUpdate, T-Mobile, Vodafone and O2 put forward a suggestion in January 2009 to increase the mobile termination fees, while E-Plus was the only operator to propose a reduction. The new rates are valid until 30 November 2010.