Germany's Telecommunications Reform: A Shift Towards Private Competition

Germany's ongoing telecommunications reform has gained momentum with the approval of the Telecommunications Future-Privatization Reform legislation. According to Wolfgang Boetsch, the German Minister of Posts and Telecommunications, this reform aims to create a competitive market, eliminating the monopoly of Deutsche Telekom (DT). The legislation will transform DT into a stock corporation, with the first public stock issuance expected in 1996. Boetsch believes this move will bring Germany's telecommunications market in line with other European countries, which are also adopting private competition.

Key Takeaways:

• The German Parliament is expected to pass the Telecommunications Future-Privatization Reform legislation by summer recess, paving the way for the privatization of Deutsche Telekom (DT).
• The reform will transform DT into a stock corporation, with the first public stock issuance expected in 1996.
• Germany's telecommunications market is expected to become more competitive, with foreign companies already holding 50% of satellite licenses and a significant stake in cellular licenses.
• The European Union is credited by Boetsch for speeding up Western Europe's reform from a monopoly to private competition.
• Germany's reform aims to ensure a more liberal market, with foreign entities or governments allowed to hold more than 20% of a common carrier, unlike the United States.

Statistics:

• 50% of Germany's satellite licenses are held by foreign companies, primarily from the United States.
• Deutsche Telekom (DT) will be transformed into a stock corporation by January 1, 1995.
• The first public stock issuance for DT is expected in 1996.
• Germany's telecommunications market has more open markets compared to the rest of Europe and even the United States.

Sources:

• Wolfgang Boetsch, the German Minister of Posts and Telecommunications
• Center for Strategic & International Studies