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TABLE OF CONTENTS
ISSUE
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EXECUTIVE
SUMMARY
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Structure
of Document
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I.INTRODUCTION
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I.A.
ROLE OF THE TELECOMMUNICATIONS SECTOR
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II. BACKGROUND
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II.A.
MARKET SHARE: DEUTSCHE TELEKOM AND COMPETITORS
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II.A.1.Fixed
Line Network Communications
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II.A.1.1.Comptetition
in the Fixed Network Communications Market
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II.A.1.1.a.Competition
in the Local Market
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II.A.1.2.
Internet and Online Services
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II.A.1.3.
Digital Subscriber Line (DSL) Market
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II.A.1.4.
Broadband TV Cable Network
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II.A.2
Mobile Communications
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II.A.3.
Data Communications and Information and Communications Systems
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II.A.4
License Holders
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II.B.
PRICE DEVELOPMENT
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II.B.1.
No Reduction in Local Call Charges
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II.B.2.
High Internet Access Charges
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II.B.3.
Price Development in the DSL market
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II.C.
MARKET GROWTH
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II.D.
EMPLOYMENT DEVELOPMENT
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II.E.
OBSTACLES FACED BY THE COMPETITORS TO DEUTSCHE TELEKOM
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II.E.1.
Anti-competitive Practices of the Incumbent
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II.E.1.1
Price Dumping and Cross-Subsidization
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II.E.1.2
Local Loop Leased Line Charge
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II.E.1.3.
Interconnection and Unbundled Local Loop Problems
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II.E.1.4.
Lack of Information
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II.E.2
Role Of Regulatory Authority
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II.E.2.1.
Lack of Efficiency and Authority
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II.E.2.2.
The Length of Procedures
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II.E.2.3.
Exorbitant Licensing Fee
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II.E.3
The Role Of Federal Government
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II.E.3.1.
The Federal Government's Involvement in the Regulatory Decision
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II.E.3.2.
The Government's Stake in the Deutsche Telekom
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II.F.
HISTORY OF THE GERMAN TELECOMMUNICATIONS SECTOR
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II.F.1.
The Regulatory Framework
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II.F.1.1.
Regulatory Supervision
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II.F.1.2.
Licensing Requirements and Allocations of Frequencies
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II.F.1.3.
Special Requirements Applicable to Market-Dominant Providers
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II.F.1.4.
Price Control
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II.F.1.5.
Interconnection
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II.F.2.
Regulation in the European Union
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II.F.3.
International Obligations: GATS, BTA
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II.G.
MAIN STAKEHOLDERS
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II.G.1.
The Incumbent: Deutsche Telekom AG
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II.G.1.1.
Revenues per Business Area
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II.G.1.2.
Employees
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II.G.1.2.a.Civil
Servants
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II.G.1.2.b.
Non-Civil Servants
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II.G.1.3.
Deutsche Telekom Stock
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II.G.2.
The Federal Government
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III.
ANALYSIS SECTION
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III.A.ECONOMIC
ANALYSIS
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III. A.1.
Which Market and Structural Barriers are the New Market Entrants
Facing?
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III.A.1.1.
Deutsche Telekom's Competitive Advantage in Controlling the
Existing Network
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III.A.1.2.
Lack of incentives to Introduce Competition
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III.A.1.3.
Organizational Integration
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III.A.2.
What is the Economic Importance on the Interconnection and the
Leased Line
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Charges
for the Unbundled Local Loop?
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III.A.3.
What would the Impact of More Competition in the Local Fixed Line
Market
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on
the Various Stakeholders and the German Economy be?
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III.A.3.1.Impact
on Consumers
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III.A.3.2.
Impact on Deutsche Telekom
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III.A.3.3.
Impact on the German Economy
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III.A.3.4.
Impact on the Competitors
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III.A.3.5.
Impact on Employment
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III.A.4.
What would be the Impact of Lower Internet Access Charges on
Demand?
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III.B.
COMMERCIAL ANALYSIS OF THE COMPETITIVE SITUATION
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II.B.1 Are
the Fees Deutsche Telekom charges for the Access to the Local Loop
too high?
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III.B.2.
Does Deutsche Telekom engage in price squeezing techniques and
cross-
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subsidization?
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III.B.3.
Is there evidence for alleged backlogs in collocation space?
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II.B.4. Is
Deutsche Telekom Preventing the Creation of Alternative Cable
Operators?
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III.C.INSTITUTIONAL
ANALYSIS
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III.C.1.
Does the Regulator have enough authority to restrict Deutsche
Telekom in
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abusing
its market-dominant position?
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III.C.2.
Does the regulatory body lack an understanding of the economic
significance of
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certain
practices of the incumbent?
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III.C.3.
Is there a certain bias in the regulator's decision-making towards
Deutsche Telekom?
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III.C.4.
Are the licensing fees charged by the regulatory authority too
high?
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III.D.
LEGAL ANALYSIS
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III.D.1.
Can Deutsche Telekom's below cost pricing be legally challenged?
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III.D.2.
Can Deutsche Telekom be challenged for not segregating its
accounting system?
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III.D.3.
Can Deutsche Telekom be challenged on the interconnection
conditions it offers
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competitors?
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III.D.4.
Are there legal provisions to challenge the rate for the leased
line?
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III.D.5
Are there legal provisions ensuring the independence of the
regulatory body?
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III.D.6.
Are there any legal provisions requiring the complete divestment
of Deutsche
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Telekom
from its legacy cable network?
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III.D.7.
Are there any legal requirements regarding the amount of the
licensing fees?
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III.E.
POLICY ISSUE ANALYSIS
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III.E.1.
Is there not sufficient competition in the telecommunications
market already?
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III.E.2.
Should the Government Engage in the Protection of Jobs at Deutsche
Telekom?
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III.E.3.
Should the Government Engage in the Protection of Deutsche Telekom
to
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Provide
Universal Services?
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III.E.4.
Should the Government divest itself from its holding in Deutsche
Telekom?
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III.E.5.
Why does Germany need a cable network for telephony services?
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III.F.
POLITICAL ANALYSIS
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III.F.1.
Deutsche Telekom AG (DTAG)
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III.F.2.
The German Federal Government
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III.F.3.
Ministry of Economics and Technology
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III.F.4.
Ministry of Finance
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III.F.5.
The Independent Regulator
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III.F.6.
Federal Cartel Office
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III.F.7.
Monopolies Commission
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III.F.8.
Parliamentary Groups
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III.F.8.1.
Social Democratic Party
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III.F.8.2.
Christian Democratic Party
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III.F.8.3.
Alliance 90/The Greens
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III.
F.8.4. Liberal Democratic Party
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III.F.8.5.
Democratic Socialist Party
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III.F.9.
Consumer organizations
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III.F.10.
Labor Unions
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III.F.11.
European and International Stakeholders
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III.F.11.1.
EU Commission
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III.F.11.2.
United States Trade Representative
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III.F.11.3.
Foreign telecommunications forms and associations
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III.F.12.
German Public Opinion Analysis
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III.F.12.1.
Demand for Cheaper and Unmetered Internet Access
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III.F.12.2.
Customer Service at Deutsche Telekom
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III.F.12.3.
High Demand for Alternative Operators
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III.F.12.4.
Stock Market Disappointment
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IV. RECOMMENDATIONS
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IV.A.
Cooperation and Transparency at Deutsche Telekom
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IV.B.
Government
Divestment of Deutsche Telekom
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IV.C.
Creation of
Alternative Operators: Broadband TV Cable Network
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IV.D.
Stricter Legal Enforcement by the Regulator
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IV.E.
Reevaluation of the Wholesale Leased Line Charges
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IV.F.
Reassessment of the Licensing Fees
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V. COMPREHENSIVE STRATEGY PAPER
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V.A.
Coalition Building Strategy
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V.B.
Domestic Strategy
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V.C.
European Strategy
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V.D.
International Strategy
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V.E.
Domestic Political Strategy
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V.E.1.
Labor Unions
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V.E.2.
Chancellor Schroeder
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V.E.3.
Ministry of Economics
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V.E.4.
Ministry of Finance
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V.E.5.
Ministry of Labor and Social Affairs
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V.E.6.
Federal Cabinet
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V.E.7.
Bundestag
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V.F.
International Political Stretegy
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V.G
Negotiation
Strategy
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V.G.1.
Unions
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V.G.2.
Deutsch Telekom
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V.G.3.
Chancellor Schroeder
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V.G.4.
Financy Ministry.
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V.H.
Public Relations
Strategy
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Operational
Document I: Sample White Paper
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Operational
Document II: Sample Letter to Potential Coalition and Campaign
Members
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Operational
Document III: Sample Open Letter to Chancellor Schroeder
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Operational
Document IV: Sample Op-ed Piece
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Annex
I: Estimated First Year Budget for the Coalition and Campaign
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Annex
II: Distribution of Seats in the German Bundestag
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Annex
III: Legislative Process
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Annex
IV: Glossary of Terms
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Bibliography
and Consulted Sources
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