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AFX News Limited
Deutsche Telekom confident 3 bln eur VDSL network won't be sunk by EU regulator
12.16.2005, 02:23 AM



BONN (AFX) - Deutsche Telekom remains confident a 3 bln eur investment in

new high-speed internet networks will go ahead as planned despite moves by EU authorities to impose a regulatory framework on the sector.

The telecom giant has outlined plans to spend 3 bln eur by mid-2007 on linking 50 German cities via a VDSL (very high bit rate digital subscriber line) network.

But on Wednesday the German government, which had hoped to secure Deutsche Telekom a regulatory exclusion for the project, agreed to regulate parts of the new network under pressure from the European Commission, notably any new VDSL build-out that simply replaces existing broadband ADSL networks.

A spokesman for Viviane Reding, European telecoms commissioner, said: 'We insist that the development of the VDSL market in Germany follows the EU rules and that the dominant player will not be given a head start in a monopoly.'

But a Telekom spokesman yesterday insisted that its VDSL build-out plan remains on track, and that it is confident it alone will control access to the new networks.

newsdesk@afxnews.com

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