DT submits price proposals for access to fibre-optic network

Germany’s incumbent fixed line operator Deutsche Telekom (DT) has applied to the country’s telecoms regulator, the Federal Network Agency (FNA), to approve the charges for use of three elements of its fibre-optic infrastructure. ‘We have developed a simple, transparent and fair pricing model. This makes it easier for our competitors to calculate their broadband investments,’ commented Niek Jan van Damme, member of the board of management of DT, adding, ‘There is no doubt that Germany needs more fibre-optic infrastructure, but competitors must also contribute to the expansion.’ The telco offers access in multi-function cabinets for a monthly unit price; telecoms companies which use slots in the multi-function cabinet pay a corresponding portion of the unit price, depending on how many slots they use. DT is proposing a charge of EUR173.32 (USD249) per month for access in the multi-function cabinet, which has a maximum of four slots, while access to the incumbent’s cable channels will be charged at EUR0.43 per metre used for one quarter pipe per month and dark fibre use will cost EUR353.96 per month, offering a flat rate for the use of two fibres for a single section from the main distribution frame. DT based its prices on the FNA’s criteria for wholesale products, which was outlined in December 2009. ‘It is vital that the FNA ensures the pricing is structured in such a way as to stimulate further expansion,’ noted van Damme, adding, ‘No companies will invest in additional infrastructure if it is too cheap to use our networks. Setting charges that are too low will also devalue the fibre-optic infrastructure that city network operators in particular have already installed.’