Deutsche Telekom boss Rene Obermann can keep rivals at bay

Deutsche Telekom insists it needs to protect its 3bn euro ($3.9bn; �2bn) investment in the new network.

The network is intended to provide a vehicle for services like internet TV.

German Economy Minister Michael Glos said the bill would boost interest in new services, but the European Commission has condemned the law.

Pull-out threat

The Commission backed demands made last year by the German telecoms regulator that Deutsche Telekom should open up the network to competitors' services.

But Deutsche Telekom responded by threatening to cease development of the internet service if it was subject to official regulation.

Deutsche Telekom plans to offer TV, internet and phone links via a single connection.

It is based on a system known as VDSL, which can carry far more content than existing networks.

However, public demand for VDSL services has been slower than Deutsche Telekom had hoped for and the telecoms bill is intended to increase confidence in the future of new internet connections.