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March 21, 1997updated 05 Sep 2016 12:56pm


By CBR Staff Writer

The European Commission has given its approval to British Telecommunications Plc, Deutsche Telekom AG, France Telecom SA, Telecom Italia SpA and Telefonica de Espana SA for their plan to join forces to create a pan-European digital backbone, but warned that it was watching to ensure the companies did not discriminate when leasing lines to competitors. The five intend to link their circuits to create the Global European Network high-quality fiber optics network using Plesiosynchronous Digital Hierarchy technology. The Commission liked the plan for the fact that it will considerably improve the quality of trans-European telecommunications services, but it cleared the deal only after concessions from the five, including a pledge that they would not set prices collectively and would negotiate access to capacity only on a bilateral basis.

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