Value-added services: Regulation and reality in the Federal Republic of Germany

Eberhard Witte and Michael Dowling

Telecommunications Policy, 1991, vol. 15, issue 5, 437-452

Abstract: This article examines the differences in regulatory policies governing the provision of value-added services (VAS) in Germany and the USA, and the impact these policies have had on market development. There follows a detailed discussion of how supply-side and demand-side factors are affecting the market in Germany. Competition among potential suppliers is intensifying, although large foreign entrants enjoy significant advantages and DBP TELEKOM still derives competitive edge over domestic rivals from its position as supplier of monopoly network services. The market for external suppliers of VAS to large firms does not look very promising, though niche markets could be found. Smaller firms are in greater need of external suppliers but have hitherto been reluctant to adopt VAS.

Date: 1991
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