Thursday, January 21, 2010

Germany - Deutsche Telekom sets out position on access charges for FTTH

[DTAG] Deutsche Telekom has applied to the Federal Network Agency to approve the charges for use of three elements of its fiber-optic infrastructure. The Group is offering access in multi-function cabinets for a monthly unit price. Telecommunications companies who use slots in the multi-function cabinet pay a corresponding portion of the unit price. Niek Jan van Damme, Member of the Board of Management of Deutsche Telekom AG responsible for Germany: "We have developed a simple, transparent and fair pricing model. This makes it easier for our competitors to calculate their broadband investments. There is no doubt that Germany needs more fiber-optic infrastructure, but competitors must also contribute to the expansion."

The Federal Network Agency specified the criteria for wholesale products in December, which Deutsche Telekom has used as orientation in calculating its prices. The charges in detail:

* Total monthly charge for access in the multi-function cabinet: EUR 173.32. This price is apportioned to the telecommunications companies (including Deutsche Telekom) according to the number of slots they use. There are a maximum of four slots per multi-function cabinet.
* Monthly charge for access to cable channels: 43 euro cents per meter used for one quarter-pipe.
* Monthly charge for access to dark fiber: Flat rate for the use of two fibers for a single section from the main distribution frame: EUR 353.96.

"It is vital that the Federal Network Agency ensures the pricing is structured in such a way as to stimulate further expansion. 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 fiber-optic infrastructure that city network operators in particular have already installed," said Mr. van Damme.

Deutsche Telekom applies for fiber-optic infrastructure charges

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