To: richard wilson who wrote (31043 ) 11/11/1998 3:05:00 PM From: kybelle Read Replies (1) | Respond to of 50264
Welcome from me also Richard: DGIV has been negotiating with a number of foreign markets, positioning itself for a big "piece of the teleco pie"...Expect good things to come from Germany....here's an article on the general outlook on the open teleco market in Germany....verry interesting... hmmmm.....no hype....JMO.... Pat....wondering how you say "pie" in German... ****** ****** ****** An American Institute for Contemporary German Studies and CSIS International Communications Studies Program Seminar Klaus-Dieter Scheurle President The Regulatory Authority for Telecommunications and Post Germany "Telecommunications in Germany: An Open Market" A lawyer by training, Mr. Scheurle was Head of the Regulation Department of the former Ministry of Post and Telecommunications at the time of his appointment of the new authority. He had previously served as Head of the Basic Policy and International Affairs Department of the Ministry, as well as having served as Head of the Office of the Minister. At a recent luncheon sponsored by AICGS and CSIS, Mr. Scheurle spoke about the deregulation of the telecommunications market in Germany and the first months of the new Regulatory Authority for Telecommunications and Post, which officially opened on January 1, 1998. According to Mr. Scheurle, the German Telecommunications Act has opened the market to all. A license is required only for the operation of transmission paths and for providing voice telephony to the public. There are no special restrictions placed on foreign companies. Mr. Scheurle explained that the requirements for obtaining a license are fairly liberal. Applicants must have proven reliability, efficiency, and specialized knowledge of their chosen field. 130 licenses have already been granted to date, with a further 100 being processed. He offered these figures as proof that companies have faith in the potential for economic growth unleashed by market deregulation. One way the Regulatory Authority encourages competition is by obliging Deutsche Telekom, because of its dominant position, to provide essential services to its competitors. In the local network, the Authority has set the price of basic access to DT's copper wire (without transmission and switching facilities) at $11.30 per month. Three competitors had already entered the market, and now that the price has been set for basic access, many more companies are expected to do so. Mr. Scheurle contends that there have already been many significant changes in the telecoms market. Long-distance telephone calls are cheaper than before deregulation, some by more than fifty percent, which benefits not only businesses but also the public at large. Deregulation is leading to more jobs as well with the information industry creating 102,000 jobs in the past two years and an additional 91,000 new jobs expected this year. It is forecasted that Deutsche Telekom's competitors will have 14 percent of the fixed voice telephony market by the year 2000, showing that competition is working. He stressed that there are other measures of the success of deregulation beyond lower prices, especially improved quality and the availability of innovative services. He gave as an example the development of digital signatures which are important for electronic commerce and document transfers. The Regulatory Authority is setting up a Root Certification Authority which will assign signatures to users and insure their security. This agency is set to begin operating in September. Mr. Scheurle concluded his speech by restating the mission of the Regulatory Authority, which is to ensure easy access to the telecommunications market and equal opportunity for all. This in turn will lead to sound and predictable investment conditions and benefit the economy as a whole. He said that the excellent outlook in the communications and information technology markets has already been an important factor in the recent improvements in the German economy.