2011 Telecommunications Sector Report
In its special report entitled “Telecommunications 2011: Strengthening Investment Incentives, Safeguarding Competition”, the Monopolies Commission notes that the intensity of competition in the retail markets for fixed-line telephony has continued to increase over the past two years. This applies to the call termination markets and, in particular, to the market for local loops. Unlike two years ago, the Monopolies Commission is now convinced that competition in the market for local loops is also sustainably competitive. Regulation of this market can be discontinued. Should the incumbent operator attempt to defend its market position through abusive practices, such as price-cost spreads or the setting of predatory prices, this can be appropriately addressed using the tools of competition law.
The urgently needed expansion of fixed and mobile broadband networks in Germany must continue to be driven by competition and market forces. Regulation of the telecommunications markets is intended to safeguard competition. However, it must be applied with a sense of proportion so as not to stifle the investment capacity of the market players.
