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November 26, 1997updated 03 Sep 2016 2:21pm

DEUTSCHE TELECOM SPINS OFF CABLE ARM FOLLOWING EC PRESSURE

By CBR Staff Writer

In what is its second significant victory this week, the European Commission has seen Deutsche Telekom AG bow to doubts raised over unfair competition, and agreed to spin off its cable television activities into a separate subsidiary. Earlier this week, Microsoft Corp agreed to give up royalty claims it had imposed on the Santa Cruz Operation Inc after queries raised by the Commission (CI No 3,297). Deutsche Telekom is the major player in the German cable TV market, one of the largest in the world, currently connecting 17 million homes. It plans to introduce voice traffic and online services in the future. Deutsche Telekom still has plans in place for a much criticized digital pay TV alliance with the Kirch Gruppe and Bartlesman (CI No 3,238).

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