With the draft Telecommunications Act (TKG) of 15 October 2003, the Federal Government set out its proposals for implementing the new European regulatory framework for electronic communications services. The Bundesrat adopted its opinion on the draft bill on 19 December 2003. The Federal Government published its response on 14 January 2004. It is expected that the legislative process will not be completed before mid-2004. The implementation deadline set by the European Commission – the end of June 2003 – will thus be exceeded by at least one year. The Monopolies Commission has taken a critical view of the process of liberalisation and market opening in the telecommunications sector from the outset. However, the current draft of a fundamental amendment to the Telecommunications Act (TKG) goes far beyond the reforms under discussion in Section 81(3) of the TKG in a number of respects. It is therefore submitting this special report.