Investment for the future:

O2 demands moderate and far-sighted regulation of mobile communication termination fees

MUNICH. Today Telefónica O2 Germany submitted its application for the approval of new mobile communication termination fees with the Federal Network Agency. The fees have to be reset by November 30. To achieve long-term planning certainty, the termination fees should be set for at least 36 months.
"Those fees are an important factor in the investment planning of all mobile communication companies," explains Markus Haas, Managing Director Corporate & Legal Affairs of Telefónica O2 Germany. "In the setting of the fees, a reasonable balance between the necessary investments of the mobile communication companies and the achievable income must be found." The Federal Network Agency has dropped the mobile communication termination fees by around 60 percent since 2004. At the same time, Germany as a location requires investments of over 35 billion euros for the upgrading of its broadband networks.
O2 is therefore calling the Federal Network Agency to industrial-policy foresight. The more moderate the regulation turns out, the more leeway the companies have to make new investments for the future. The mobile communication termination fees were lowered by around 19 percent only back in April 2009, which is why a similar drop should be avoided this year. O2 stands for especially fair end-consumer offers, but for such attractive products all market participants require a solid economic basis. Telefónica O2 Germany submitted two applications today, because for the first time the mobile communication operators are required to use a cost model of the Federal Network Agency. This is included in an auxiliary request. The main request presents its own cost accounting since numerous legal issues from earlier settings of the mobile communication termination fees have not yet been conclusively clarified at the highest court level. This also explains the amount of the requested fees.
Telefónica O2 Germany GmbH & Co. OHG belongs to Telefónica Europe and is part of the Spanish telecommunication group Telefónica S.A. The Company offers its German private and business customers postpaid and prepaid mobile telecom products as well as innovative mobile data services based on the GPRS and UMTS technologies. In addition, the integrated communications provider also offers DSL fixed network telephony and high-speed internet. Telefónica Europe has about 55 million mobile and fixed network customers in Great Britain, Ireland, the Czech Republic, Slovakia and Germany.