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Deutsche Telekom asks for increase in ULL charges

2013-01-22 13:07:00| Telecompaper Headlines

(Telecompaper) Deutsche Telekom has applied for an increase in ULL charges, saying it needs to charge a higher price in order to help finance the costs of new networks. The German operator said it asked the Federal Network Agency (Bundesnetzagentuur) to approve a monthly charge of EUR 12.37 for providing unbundled local loop (ULL) lines to alternative operators. The current charge of EUR 10.08 expires at the end of June, and the new rate would apply for three years, with an option for another three-year extension. Deutsche Telekom said the latest review of the rates provides an opportunity to create a "stable" investment environment for the long term. "We are taking European Commissioner Neelie Kroes at her word and expect specific incentives for us to invest billions of euros," said Niek Jan van Damme, head of Telekom's business activities in Germany, in a statement. Kroes proposed last year that incumbent operators could be offered more "flexible" conditions for last mile pricing, including possible price increases, in order to encourage investment in new networks and in exchange for improving equal access conditions. Deutsche Telekom currently leases out around 9.5 million ULLs.

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Category:Telecommunications

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