T-Online will slash prices to kill competition

Desperately seeking growth, german incumbent Deutsche Telekom’s T-Online will cut prices on its DSL services by upto 63% in order to win back market share. Arcor, HanseNet, United Internet and Freenet.de are stealing customers by thousands from the German incumbent. “It’s time to show our competitors what we can do,” Chief Executive Rainer Beaujean of T-Online tells Bloomberg. Freenet is boosting speeds to 6 megabits per second on July 1st. Beaujean says he did not start the price war, his rivals did. If they stop, so will we. “”If we notice that our competitors would like to end the price war they’ve started themselves, that’s the right moment for us to say, ‘Here we are.”‘