The Deutsche Bundespost Telekom is still worried that the German government is half-hearted in its commitment to privatise the state phone company, and chairman Helmut Ricke has been voicing his fears to the Frankfurter Allgemeine Zeitung. He told the paper that Telekom urgently needed fresh capital and that it might have to curtail its ambitious programme to overhaul eastern Germany’s antiquated telecommunications network unless it became clear that fresh capital really would be forthcoming. It is resigned to the leisurely timetable for flotation, and accepts that it may have to wait until early 1997. We can maintain the high level of investment if it is clear by the end of the year that we can count on fresh capital in 1996-97. Otherwise, we will not avoid the question of whether Telekom has to cut down its investment, Ricke said. The monopoly now invests $17,000m a year, some 55% of turnover, and a third of this goes to eastern Germany. It has launched an investment programme totalling $34,000m to build Europe’s most modern communications infrastructure in east Germany by 1997; annual borrowing will soar to $81,000m by 1995 from the present $58,000m, a figure Ricke described as adventurous. The company has to hand most of its profits over to the state, and much of its income is squandered propping up a hopelessly inefficient and chronically loss-making postal system and postal savings bank, and Ricke says the company is groaning under the interest burden on its borrowings, which he described as oppressive. He said plans to allow the government an influential role in future business decisions would be fatal for the company. It would also make it nearly impossible to compete abroad and fend off attacks to its home market when the European Community telecommunications market is liberalised in 1998. Ricke particularly fears the broad co-determination rights for employee representatives that trades unions are demanding: with this, we would have as good as no chance at all on national as well as international stock markets, he said. The government intends to keep 50% plus one share.
