The development of competition in the telecommunications markets over the past two years has been mixed. On the one hand, there are factors such as the ongoing roll-out of alternative infrastructure, the market presence of leading foreign telecommunications companies, the continued price competition and the reduction in market dominance observed in certain sub-markets, all of which point to an increase in the intensity of competition. On the other hand, competition in the long-distance and international calls sector is stagnating; key services in both the wholesale and retail markets remain within rigid monopoly structures; and Deutsche Telekom AG is able to establish a quasi-monopoly position in the significant new market for high-speed internet access via DSL technologies.
