UPDATE 1-Slovak Telekom fined by competition body

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BRATISLAVA, Aug 20 (Reuters) - Slovakia's Antimonopoly Office said on Wednesday it had fined fixed-line phone operator Slovak Telekom (ST) 885 million crowns ($43.09 million) for abusing its dominant position.

Slovak Telekom, in which Deutsche Telekom (DTEGn.DE: Quote, Profile, Research, Stock Buzz) has a 51 percent stake, said it would appeal.

The competition watchdog said the fine was the same as one annulled by a district court in September 2007. The case then returned to the Antimonopoly Office for fresh scrutiny.

The office said Slovak Telekom abused its position by refusing other phone operators access to local connections.

It said ST's actions meant "the markets did not open to competition at all, or only to a limited degree, including the possibility of competition growth in areas like voice services or internet connections."

The fine is the heaviest penalty ever imposed by the Slovak competition authority. It would represent around 15 percent of Slovak Telekom's 2007 net profit of 6.1 billion crowns.

Slovak Telekom owns and operates the only fixed-line network in Slovakia, including so-called "last-mile" connections between local phone exchanges and customers' homes and businesses.

Internet providers and alternative fixed-line phone operators need access to those connections to provide competing services.

Small telecoms operators had accused Slovak Telekom for blocking that access, while the fixed-line operator denied any wrongdoing. (Additional reporting by Martin Santa) (Reporting by Peter Laca; Editing by Erica Billingham)