German competitive telecom carriers criticized their telecom regu...
German competitive telecom carriers criticized their telecom regulator RegTP for walking away from the ex ante price control imposed on Deutsche Telecom’s (DT) voice telephony service. In a briefing paper to the U.S. govt., the German Competitive Carriers Assn.…
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(VATM) said RegTP was “mainly responsible” for the regulatory uncertainty in Germany because it “failed to advise industry timely on the price review and control standards that it applies to its rulings, after the new [Telecom] Act entered into force.” VATM expressed concern that RegTP used a “singular [administrative court in Cologne] decision in preliminary injunction proceeding to shift its general policy on price control -- outside of any formal rulemaking.” Without conducting public consultations or hearings, RegTP had indicated it would no longer review DT’s price ex ante, but only after the fact. “Price control by a regulator after the incumbent’s offer hits the market usually comes too late -- the damage is already done,” said Axel Spies, a Washington attorney representing VATM.