PrimaCom calls on FNA to review KDG pricing plan

24 Nov 2009

German cable operator PrimaCom has called on the Federal Network Agency (FNA) to look into rival Kabel Deutschland’s (KDG’s) wholesale pricing for the delivery of television channels to so-called ‘Level 4’ operators, Broadband TV News reports, citing local newspaper Die Welt. Germany’s cable network is divided into four levels; at Levels 1 and 2 signals are transmitted from channel source to regional networks; Level 3 sees operators forward signals to buildings’ external interconnection points; and Level 4 operators deliver services to the end user’s home. Level 3 providers control most of the backbone whilst hundreds of Level 4 firms operate the majority of connections to customers’ homes. KDG currently delivers television signals under an existing contract between Deutsche Telekom (DT) and PrimaCom, which KDG had to honour when it took over the network from DT. With the contract now up for renewal however, KDG plans to charge a flat fee, independent of the number of homes actually taking the signal. PrimaCom has called for a 33% reduction of KDG’s proposed wholesale fees. The regulator has until 28 December to respond to PrimaCom’s complaint.