Dusseldorf Two of Europes biggest telephone groups are set to clash Friday
when Telefonica of Spain files a complaint with German regulators against local
exmonopolist Deutsche Telekom.
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Well be asking for an inquiry into abuse of a dominant position, said
Johannes Pruchnow, chief executive of Telefonica Germany, in late Wednesday
remarks held back till Thursday under an embargo.
Telefonica has made inroads in Germany by building an internet backbone and
undercutting Telekoms prices.
Its services are mainly offered via its own 02 brand and through resellers
including Telecom Italias local unit, Hansenet, and German resellers Freenet
and United Internet.
To connect up with homes and offices, Deutsche Telekom has been obliged to
unbundle the socalled local loop which it owns and offer lines for rent to
other companies. The regulator decides squabbles about renting.
The Spanish group said Telekom was not providing it with sufficient DSL (digital
subscriber line) connections via copper wires and its announced planning showed
not enough would be released in 2008 either.
Deutsche Telekom denied the claim Thursday, saying it had leased more lines to
Telefonica that contractually agreed.
Pruchnow confirmed this, but said, We have a structural problem here. The
complaint would be filed Friday with the Federal Networks Agency in Bonn.