T-Online expands Internet telephony

Heise-Online, 02.08.2005

Deutsche Telekom subsidiary T-Online is getting into the Voice over IP
business. "Starting tomorrow, we will be offering complete
Voice-over-IP packages with new DSL rates," T-Online CEO Rainer
Beaujean announced in today's issue of the German economics magazine

T-Online is thus responding to the pressure from competitors such as
Freenet.de and AOL, who have long been offering such services, as the
magazine writes. Up to now, the Internet provider based in Darmstadt
has been reluctant to launch its own Voice-over-IP service because
inexpensive VoIP calls are endangering the revenue of the Telekom's
fixed-line division, T-Com, a sister company of T-Online. This helps
explain why T-Online has been offering certain VoIP services but not
with nearly all of the features that the competition has been offering.

When the new rates become available, 3.5 million T-Online DSL customers
will be able to choose between 120 and 400 free minutes on the German
landline network, Handelsblatt is reporting. T-Online will be charging
2.9 cents for each additional minute on the German landline network,
while VoIP calls to other T-Online DSL customers will be free. T-Online
will also soon be offering video calls via the Internet.

Beaujean told the paper that T-Online would be addressing the market
"more aggressively" and that price wars are anything but a thing of the
past. These price wars have already led T-Online to lower its DSL
rates, forcing the company to reduce its targets for revenue and
earnings in 2005. (Craig Morris) / (jk/c't)

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