| Germany: Regulator refuses to authorise DTAG’s 10 cent tariff proposal |
| Friday, 28 May 2004 | |
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The regulatory authority has ruled that the monthly subscription fee of 4.22 Euro cmbined with a 10 cent per hour charge for national calls would not be sufficient to cover DTAG’s costs (taking into account an average usage rate). The price setting therefore constitutes a non-admissible rebate. The rebate is considered to be harming competition. New entrant operators are not enabled to build similarly priced services on the basis of DTAG wholesale offers. The REG-TP has concluded from a brief study it had commissioned that agreeing the DTAG’s tariff proposal would result in an anti-competitive situation and an abusive price setting and has therefore declined to agree the tariff proposal. |