EU Says Germany Willing To Solve Telecom Conflict-Sources

HANOVER -(Dow Jones)- The German government appears to be willing to ease its stance in the controversy with the European Commission about Germany's planned new telecommunications law.

European Commission sources told Dow Jones Newswires Thursday that government officials have signalled their willigness at the CeBIT trade fair to solve the conflict.

European Information Society and Media Commissioner Viviane Reding and German Chancellor Angela Merkel both attended the fair.

The European Commission in February had expressed concern to the German government about the planned law, as it would shield Germany's largest telecom operator Deutsche Telekom AG (DT) from its rivals.

Deutsche Telekom plans a EUR3 billion high-speed optical-fiber network and wants the network to be exempted from regulation and any requirement to offer its lines to rivals; a demand the German government initially backed.

Following criticism from the commission, which called the arrangement unfair, the two sides agreed in December the network would be regulated and competitors would be given access to the new network.

However, the extent of the regulation hasn't yet been determined.

Chancellor Merkel had assured Deutsche Telekom support for its high-speed network during its visit at the trade fair without saying that the telecom operator will be exempted from regulation.

-By Stefan Paul Mechnig; Dow Jones Newswires; + 49 30 2888 4128; michelle.schmitz@dowjones.com

(END) Dow Jones Newswires "

Posted to the site on 9th March 2006