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Telefonica lays complaint against Germany Telekom

Date: 12/14/2007 1:28:51 AM

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.

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.

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