Tiscali to build up German backbone

Tiscali, the Italian internet access provider, announced plans to build its own backbone in Germany at a cost of 60 to 70 mln euros (more than 70 mln dollars).

Stockmarket-listed Tiscali has thrown down a gauntlet to bigger companies with plans to boost its telephone-via-the-internet business using so-called voice over internet protocol (VOIP).

The new broadband network would meet both internet and telephone needs, said Tiscali Germany chief executive Carl Muehlner in Frankfurt, the first city to be connected.

Tiscali predicted the net would reach one third of German households within three years. Currently the provider has 235,000 German customers, well behind market leaders T-Online and United Internet.

Recently Tiscali has restructured, selling several foreign units to concentrate on Italy, Britain, Germany and the Netherlands as core markets. (dpa)