Deutsche Bundespost Telekom’s Supervisory board agreed to cut voice tariffs to the US by 37% during a meeting last week. The cut brings the cost of a call from Germany broadly in line with AT&T Co standard rates from the US to Germany. Until now, companies could achieve substantial economies by generating calls from the US to Germany, and this led to the establishment of organisations like International Discount Telephones which exploited the difference. A Telekom spokeswoman says that the rates will reflect more accurately the company’s costs. Pending ministerial approval, the changes come into effect on May 1, but Telekom has to perform a delicate balancing act since its political masters insist that international calls subsidise local rates. A tariff analysis by Tarifica/Intelidata indicates that under the new regime, three minute calls will match AT&T’s standard charges. However, the consultants point out that AT&T offers discounts and its economy rate is about 40% cheaper than Telekom charges. Secondly, unlike Telekom, the US carrier lowers its charges after the first minute of the call, so lengthy conversations are cheaper. In addition, alternative US carriers can still offer cheaper rates than AT&T.
