Competitive telcos Tues. urged Germany’s telecom regulator to vet...

Commission (EC) antitrust action, the German Competitive Telecoms Assn. (VATM) said. Now, the incumbent again is seeking the higher rate for line-sharing, which lets rivals use the higher frequency spectrum of DT’s local loop to offer DSL products in competition with DT products. Earlier this year, the EC noted that Germany had fallen behind other European Union nations in broadband takeup. This was due partly to unfavorable line-sharing rules, said VATM, which commissioned 2 studies of its own. One found German monthly and one-time line-sharing fees are far higher than the average of the 10 best-priced European countries and could stand significant cuts. The 2nd study, which gauged margin squeeze between line-sharing prices and DT’s DSL end-customer product, found that even an efficient alternative telco can’t offer competitive broadband products. A win for DT will hurt Germany’s broadband market, VATM said, by: (1) Depressing delivery of broadband products, further weakening penetration. (2) Alienating potential investors and undermining current investments. (3) Triggering layoffs by competitors. (4) Leaving DT’s DSL product dominant in the retail market. (5) Reducing or ending competition among bandwidth, broadband content and services. In Feb., DT asked regulator RegTP for a hefty hike in its monthly charge for access to its unbundled copper loop -- which VATM strongly opposed (CD Feb 22 p6) and RegTP ultimately refused. That “was the carrot, and now comes the stick,” said Axel Spies, a German lawyer in Washington who represents VATM. Competitors fear RegTP will grant DT’s request because RegTP’s president doesn’t believe line-sharing is a viable alternative to full unbundling to let entrants reach end customers, he said.