In Germany Broadband Price Wars Breakout

Less than a month after European Union ordered German incumbent telecom operator, Deutsche Telekom to share its fiber/VDSL network with rivals, the company announced that it was slashing prices by 30% in what can easily be viewed as a bid to hang onto its market share.

The company is offering a quad play offering for about 81 Euros a month. Vodafone, and Telefonica are already planning cheaper packages. Telefonica for instance is offering a Mobile/DSL package that includes a 16 megabits per second connection and flat rate calls to domestic landlines and O2 mobile phones.

The price war will run its course, but DT’s price cuts show that quasi-monopolies that have feasted off consumer way too long need a swift kick in their pants and some competition to start treating their customers right. It happened before in Italy, France and United Kingdom – not exactly ideal practitioners of free market economics. Why we can’t some of that in the US. Never mind, it was a rhetorical question.

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