Representatives of Gemany’s federal council, the Bundesrat, are threatening to disrupt the privatization of Deutsche Telekom AG and telecommunications liberalization. According to Reuter, they propose to block key legislation to liberalize the telecommunications sector and seek greater regulatory powers for the states. The move will delay final passage of the bill, which needs to become law before the middle of August to avoid putting flotation of shares in Telekom in jeopardy. The Bundestag was expected to pass the bill yesterday afternoon for it to pass to a vote in the upper house this morning. Deutsche Telekom must publish its prospectus by mid-August if the sale is to go ahead as planned in November. The states want a broader definition of universal service requirements, and want to ensure that they get a say in regulatory decisions in the agency to be set up as a watchdog after 1998. The bill as it stands gives them advisory status but with few decision-making powers.
