The EU has said that Slovak Telecom has refused to unbundle its local loops and reduced competitor margins to unsustainable levels with its high wholesale charges.

“Alternative operators have experienced unreasonable and burdensome technical and commercial terms proposed by ST,” the European Commission said in a press statement. “Moreover, ST set its wholesale prices at a level that made it impossible for alternative operators to profitably enter and operate in the retail broadband market in Slovakia (margin squeeze). This has hindered the development of the broadband retail market in Slovakia.”

As its parent company Deutsche Telekom AG is liable for Slovak Telecom and as such could be hauled up in front of the EU to answer its objections.

The EU statement reveals that the Commission has not moved quickly in this case however, having first opened proceedings against Slovak Telecom in April 2009, and then against Deutsche Telekom in December 2010.

Both parties are now expected to reply in writing setting out their defence and can request an oral hearing to present their views on the case.

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