Deutsche Telekom wants to transfer 50,000 customer service positions

Verdi rejected Deutsche Telekom's offer last week to delay layoffs in exchange for wage cuts until 2010.

The union said follow-up talks had failed and it would call for a vote on strike action next week.

Meanwhile, workers in Germany's engineering and metal-working sectors have also announced plans to strike.

'Exhausted possibilities'

Verdi has continued to oppose Deutsche Telekom's plans to reduce the wages and increase the working week of 50,000 workers who will be moved to a new 'T-Service' unit.

In the latest round of negotiations, Deutsche Telekom said it offered to drop its demand that staff must work up to 100 hours overtime.

Deutsche Telekom - Europe's biggest phone company by sales - is seeking to cut costs after two profit warnings in two months.

Some 12,000 staff have already staged a number of temporary walk-outs in protest at Deutsche Telekom's plans.

In Germany's engineering and metal-working sector, strikes are planned from next week after unions failed to agree on a new pay deal with employers.