Networked Policy

Privatization Act:

Phone system was privatized in 1996. Deutsche Post (the German Postal Service) sold telephone business to Deutsche Telekom. Even after privatization, the German government today still owns 43% of Deutsche Telekom AG. By contrast, France Telecom SA is 56% state-owned. Deutsche Telekom purchased VoiceStream Wireless in 2001.  Reduced DT’s price per share.Privatized Post office in 1995. Privatized Banks in 1999

The New German Telecommunications Act:

In 1990, the German Ministry of Post and Telecommunications ("BMPT") issued the first cellular phone license to a private competitor ("D 2" (Deutsche Telekom) Types of Telecommunication licenses available to the public:

  Class 1: cellular license (Mobilfunklizenz

  Class 2: satellite radio license (Satellitenfunklizenz)

  Class 3: telecommunications services for the public which are not covered by class 1 or class 2

  Class 4: license for Voice Transmission Services on the basis of self-operated telecommunications networks.

Telecommunication Licenses are available for sale to highest bidder.  They are awarded by expertise of the applicant, efficiency and suitability of the proposed solutions to render the services and the promotion of a functioning competition in the relevant market.

Legal Environment:

  Germany is a civil law jurisdiction. The law is divided into three major areas: private law, public law and criminal 
   law.

 German legal tradition and culture go back to the law of the Roman Empire

  German law is codified law.

  Federal legislative process may involve any of the following bodies: Bundestag (German parliament) and the
  Bundesrat.

  For more details on German Law, Information is now available on the Internet through DIP

 
German Telecom Infrastructure

  Population:  82,360,000

  Per capita GDP:  $22,686

  Telephone density: 63.48

  Cellular density: 68.29%

  Number of Cellular Subscribers: 56 million. Germany, uses the wireless EU standard uses a GSM (Global
  System for Mobile Communication). It will be one of the first countries in Europe to be third generation (3G)
  ready. 3G is basically wireless broadband using the UMTS standard.

  Equipment market size: $10.54 billion

  U.S. telecom equipment exports: $835 million

  Telecom services revenue: $50.80 billion

  WTO Basic Telecom Services Agreement signatory: YES

The best market prospects in the telecommunications sector are based on the market drivers, namely mobile and Internet services. The focus of growth in mobile communications is shifting from market share to innovative service. Both e-commerce and m-commerce are becoming increasingly more trusted and widely used for personal and business purposes. Consequently, there is a growing need for wire-line and wireless network vendors that provide equipment, maintenance and solutions for connectivity to the Internet, especially broadband.