T-Online to cut costs

Europe's biggest ISP, T-Online, said it plans to cut costs in an all-out effort to break even in 2003.

The company, which is owned by Deutsche Telekom, did not give details of its cost-cutting plans, but said it would streamline its operations.

German operations could become profitable next year, while the whole group would follow it into the black by the end of 2003, the company said. Most of the group's losses come from its overseas operations, including France, Spain and Austria.

T-Online managed to narrow its second-quarter loss to E56.9m (£35.7m), from E66.4m (£41.6m) in the first quarter, largely because it has changed its business model. Instead of charging customers a flat-rate tariff, it now charges a metered rate.