Voice Telephony in Germany

As the Telecommunication Act has come into force last year, the voice telephony monopoly of the TELEKOM has been repealed with effect of 1st January 1998. From that day on, the market for voice telephony should be liberalised, although in fact there are still a lot of obstructions by the TELEKOM, in particular concerning the last mile problem and billing.

The general proceedings for a new telecommunication company that wants to offer voice telephony services in Germany are as follows:

According to the Telecommunication Act it needs a licence to maintain a telecommunication network, either if the network exceeds its own real estate or if it offers voice telephony services to the public. These licences are separated into four classes:
- maintaining a network for mobile communication
- maintaining a network for satellite communication
- maintaining a network for telecommunication services for the public
- offering voice telephony services (this licence does not include the maintenance of a network)

The company has to apply for a licence at the Regulation Office for Telecommunication and Post:
Regulierungsbehörde für Telekommunikation und Post
Heinrich-von-Stephan-Str. 1
D - 53175 Bonn
Tel. +49-228-140
Fax +49-228-148872

The application has to include:
- name and address
- legal structure
- shareholders
- licence classes
- description of the services' nature
- description and map of the district, if not the total territory of the FRG
- proposed date of launch
- contact person
- extract from the Register of Companies
- proof that applicant does not hold a dominant position in other markets than telecommunication
- clearance certificate from the Office of Fair Trade (if the applicant has recently got new shareholders)
- proof of expert skills
- proof of efficiency
- proof of reliability

An application fee has to be paid.

Within 6 weeks, the Regulation Office should decide on the application. The applicant has a legal right to get the licence, if all requirements have been fulfilled and there is no indication that granting the licence will violate law and order. The decision of the Regulation Office, either the granting or the refusal, is an administrative act and can therefore be reviewed by the administrative courts.

If the licence for maintaining a network has been granted, the company has the right to use public roads free of charge. However, the owner of the roads (the Federal Republic, the Länder or the town) has to give his approval. He is not allowed to refuse it generally, he has only the right to decide on the technical arrangements. The question is therefore not whether the roads can be used, but how the laying has to be done. Of course, all costs for the laying have to be paid by the company, although it will also might be possible to use existing conduits for a charge, if this is technically possible and the laying of own conduits is unreasonable (e.g., if the complete capacity of the roads is already used). There has also might be a charge to be paid to the owner of the public roads for this approval procedure.

© 1998 by Jens Barkemeyer