Michigan State University

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Appetite for bandwidth will increase Berlin, September 3, 2008 – a research group of Professor Christian Wey, head of the Department of information society and competition of the DIW in Berlin, has taken the industrial policy in the telecommunications sector in selected EU countries under the microscope and developed a special counter for the telecommunications sector. After France and the United Kingdom received the best reviews. France is committed to the support of established companies by the Government, United Kingdom on very liberal labor market conditions and high public demand for communication services. In contrast to the review of industrial policy in Germany is significantly worse, caused by restrained public demand and an unclear direction of competition policy. Bernard Golden addresses the importance of the matter here. Also Spain and Italy cut better than Germany. In Italy, the infrastructure assistance plays an important role according to the DIW survey.

The era of copper networks is nearing its end; for the new generation of faster Internet connections modern fibre-optic access networks are needed. It is comparatively cheap to connect households to fibre-optic networks in major cities. Already today lay the city carrier such as NetCologne high fiber optic networks in inner-city locations in German cities. Experts don’t doubt that lively competition will develop in the cities. \”What will happen in the rest of the Republic but is currently completely open: the major network operators such as Deutsche Telekom to hold back\”, according to the DIW study, which was prepared at the request of Deutsche Telekom. \”Unlike the situation in the United States: the Americans have recognized the problem of reduced investment incentives and by gradual deregulation since 2003 to the lever: the thrust of policy in the United States is now firmly on promotion of innovation and investment\”, Johannes Bauer, Austrian white Professor at this new framework would Michigan State University show effect: the industry giants Verizon and AT & T have multi-billion dollar investment programs set up to promote the development of fibre-optic networks.

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