QSC AG Statement on German Regulatory Decisions on 30 March 2001

Apr 02, 2001, 01:00 ET from QSC AG

    COLOGNE, Germany, April 2 /PRNewswire/ -- QSC AG (Nasdaq:   QSCG)
 (Neuer Markt: QSC) welcomes the decisions taken by the German regulatory
 authority for telecommunications because these promote free market
 competition. In particular, this applies to the soon-to-be-implemented EU
 directive on "line sharing."
 
     QSC's appraisal of the individual decisions:
     1. Subscriber line charges
     This is an important first step towards addressing the totally excessive
     charges by Deutsche Telekom.  However, this needs to be followed-up by
     further steps in order to create truly competitive conditions over the
     "last mile".
 
     2. Implementation of the EU directive on "line sharing"
     This decision also represents a major step towards free market
     competition.  Particularly noteworthy are the regulatory authority's
     binding, short-term deadlines for the implementation of line sharing.  It
     is now crucial to achieve a competitive pricing schedule in order to send
     another clear signal to the mass market that we are heading towards a
     truly competitive market environment in Germany.
 
     3. T-DSL pricing
     We don't share the regulator's opinion that Deutsche Telekom's pricing for
     its T-DSL service is not a case of price dumping.  If these retail rates
     are truly realistic, then the rates Deutsche Telekom is charging its
     competitors for line sharing ought to be significantly lower.
 
     Overall, the Authority's decisions will improve the competitive situation.
 They have paved the way for competitive telecommunication access providers to
 break into the private customer market.  However, pending decisions,
 especially those concerning prices for line sharing, need to further improve
 and strengthen the competitive environment so that an open market for
 high-speed Internet access can flourish in the long term.
 
     QSC AG (QSC) is Germany's leading alternative provider of DSL broadband
 infrastructure and applications.  DSL technology makes use of the "last mile"
 in the telephone network on the basis of unbundled data transmission.  Running
 over conventional copper telephone wires, DSL offers data transmission at
 speeds many times greater than are generally available today.  QSC provides
 the user with "always on" broadband access to the Internet as scalable,
 symmetrical speeds ranging from 144 kbps to 2.3 mbps.  Its network already
 covers Germany's 40 largest cities.
     QSC has been listed on Frankfurt's Neuer Markt (QSC) and New York's Nasdaq
 (QSCG) since April 2000.  The company's IPO increased its equity capital by
 more than EUR 280 million to over EUR 400 million.
 
 

SOURCE QSC AG
    COLOGNE, Germany, April 2 /PRNewswire/ -- QSC AG (Nasdaq:   QSCG)
 (Neuer Markt: QSC) welcomes the decisions taken by the German regulatory
 authority for telecommunications because these promote free market
 competition. In particular, this applies to the soon-to-be-implemented EU
 directive on "line sharing."
 
     QSC's appraisal of the individual decisions:
     1. Subscriber line charges
     This is an important first step towards addressing the totally excessive
     charges by Deutsche Telekom.  However, this needs to be followed-up by
     further steps in order to create truly competitive conditions over the
     "last mile".
 
     2. Implementation of the EU directive on "line sharing"
     This decision also represents a major step towards free market
     competition.  Particularly noteworthy are the regulatory authority's
     binding, short-term deadlines for the implementation of line sharing.  It
     is now crucial to achieve a competitive pricing schedule in order to send
     another clear signal to the mass market that we are heading towards a
     truly competitive market environment in Germany.
 
     3. T-DSL pricing
     We don't share the regulator's opinion that Deutsche Telekom's pricing for
     its T-DSL service is not a case of price dumping.  If these retail rates
     are truly realistic, then the rates Deutsche Telekom is charging its
     competitors for line sharing ought to be significantly lower.
 
     Overall, the Authority's decisions will improve the competitive situation.
 They have paved the way for competitive telecommunication access providers to
 break into the private customer market.  However, pending decisions,
 especially those concerning prices for line sharing, need to further improve
 and strengthen the competitive environment so that an open market for
 high-speed Internet access can flourish in the long term.
 
     QSC AG (QSC) is Germany's leading alternative provider of DSL broadband
 infrastructure and applications.  DSL technology makes use of the "last mile"
 in the telephone network on the basis of unbundled data transmission.  Running
 over conventional copper telephone wires, DSL offers data transmission at
 speeds many times greater than are generally available today.  QSC provides
 the user with "always on" broadband access to the Internet as scalable,
 symmetrical speeds ranging from 144 kbps to 2.3 mbps.  Its network already
 covers Germany's 40 largest cities.
     QSC has been listed on Frankfurt's Neuer Markt (QSC) and New York's Nasdaq
 (QSCG) since April 2000.  The company's IPO increased its equity capital by
 more than EUR 280 million to over EUR 400 million.
 
 SOURCE  QSC AG