Federal Network Agency Intends to Oblige Telekom AG to Allow Call-by-Call

The Federal Network Agency intends to continue obliging Deutsche Telekom AG (DT AG) to permit Call-by-Call and Preselection services on its connections. This is outlined in a draft regulatory order published on March 18, 2009, which is based on the biennial analysis of the market for telephone connections and has been released by the Federal Network Agency for market consultation.

The draft clarifies that the obligation for Call-by-Call and Preselection also extends to IP-based connections. In 2008, Call-by-Call and Preselection still constituted 33 percent of competitor offerings. While their importance is diminishing due to the prevalence of flat-rate and bundled packages, these access options remain a crucial alternative for specific customer segments.

Furthermore, DT AG's connection charges are to remain subject to ex-post regulation. A newly introduced measure in the draft is the obligation for DT AG to offer telephone connections to competitors for resale. DT AG has previously provided this 'connection resale' without an explicit mandate from the Federal Network Agency. The proposed obligation for a connection resale offering aims to establish the prerequisites for defining and standardizing business processes. This will enable alternative network operators to procure connections from DT AG for their own customers on a reliable legal basis, thereby allowing them to operate in regions where their own infrastructure development is not yet complete.

Conversely, in view of the observed consolidation of competitive structures within the telecommunications market, the draft order also proposes a relaxation of regulation in specific areas. For example, DT AG will no longer be obligated to notify the Federal Network Agency of planned tariff adjustments two months prior to their effective date, nor will it be required to immediately disclose contracts for individually negotiated services upon their conclusion.

The draft order is available for review and download on the Federal Network Agency's website at www.bundesnetzagentur.de. All interested market participants are invited to submit their comments by April 15, 2009.

Source: Press release of the Federal Network Agency of March 18, 2009

 

Goldberg Rechtsanwälte

Attorney Michael Ullrich, LL.M. (Information Law)

Specialist Lawyer for Information Technology Law (IT Law)

Email: info@goldberg.de