This paper describes the development of the German telecommunications sector in the aftermath of complete liberalization. The paper focuses on the effects on the consumers. I present data showing the speed with which new firms entered the market. As a result of entry, rates for long distance and international calls fell drastically. In the local loop, however, competition hardly exists and the rates for local calls are unchanged. The paper also discusses questions concerning consumer rights. A particular concern is that it is still difficult for many consumers to get sufficient information on rates.
Among economic journals, this publication has a “bridging” function, as it features content written by economists for researchers in the field and for non-specialists, including professionals with a background in economics who want to keep up to date with the latest research.