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EU says German rules shelter Deutsche Telekom

European regulators threatened to veto planned telecommunications rules in Germany in a bid to expose Deutsche Telekom AG, Europe's largest telephone company, to more competition. The proposal would designate Deutsche Telekom as having significant market power only in the lower bandwidths of two markets linked to voice and data transmission. „The segmentation of the leased lines markets by bandwidth can be problematic,” Viviane Reding, the European telecommunications commissioner, said in a statement yesterday in Brussels. The markets in question are for wholesale terminating and trunk segments of leased lines, which are dedicated connections for voice and data transmission. The German regulator „has so far provided insufficient evidence to support its definition of the wholesale leased lines market,” the commission said in the statement. The commission opened a two-month probe to collect more information and will rule whether the German regulator can proceed with the proposed measures after the enquiry. (Bloomberg)