German's Telecommunications Industry and Also Article Review

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80, and the one-off charges became EUR 81.12 and the basic connection at EUR 70.56 and for the takeover at 34.94 for discontinuing it or for a transfer at EU 50.71. These are regulated by the Telecommunications Act of 1996.

d. Describe the connection technologies available to retail consumers. What were DT's price structures for these connection technologies? How were retail prices in the market for telephony services regulated?

The connection technologies that are available are worth mentioning. These include those that is through an analogue connection. They also can access it through a means of a digital narrowband connection, such as ISDN. The price structure is as follows. One will have a subscription fee of EUR 10.93, and for the retail one-off charges for that of analogue and ISDN will remain at EUR 22.22 and the EUR at 44.45 for the connection to become serviceable. All of these are regulated by the Telecommunications Act of 1996. Every company has to go through the government in order to prevent a monopoly from occurring again and to allow opportunities for other businesses to enter the market as a means of making their own revenue as well.

e. Explain the concept of a "margin squeeze." Outline DT's argument for why its pricing practices do not constitute a margin squeeze. Outline the counter argument.

The concept of margin squeeze is important.

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When several competitors note that DT's charges are unreasonable, then this forces the company to change their prices for retail consumers that are considered quite far in regards to retail for other services that are similar. This can make it to where competitors can argue that they will not make a profit or have an opportunity to compete.

DT's argument outline: 1. Margin squeeze excessive wholesale prices or insufficient retail prices. 2. Solution-vary both wholesale and retail charges. 3. Currently, they can control retail charges.

Counterargument: 1. Margin squeeze is relevant. 2. A margin squeeze can exist between wholesale and retail prices.

f. The article ends in 2001. What has happened to DT and to Germany's telephony services since then? i.e. describe current market conditions, DT's competition, were the price caps effective etc.

Since 2001, DT has continued to provide services to people in the industry as well as maintained the margin squeeze. The current market is under much regulation from that of the Telecommunication Act of 1996. This has prevented any monopolies from occurring since then. Many new businesses have entered the market since the 1996 telephone industry getting regulated. One can concur that the price caps were effective because this made it to where it was affordable for retailers and wholesalers to maintain business for those that are interested in.....

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