It aimed to level the playing field by permitting

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retail telecom services. It aimed to level the playing field by permitting smaller players to gain direct access to German retail market by enabling them an access to DT’s network. The German law provided different regulatory framework with respect to wholesale access and retail services. (b) Prior 1996 DT was legal monopoly in the retail fixed line telecommunication market. The new entrants needed to invest large sums of the capital to develop a network infrastructure to provide retail telecom services. This made entry barrier for new entrants and it was difficult to match the economies of scale which were being enjoyed by DT. The reason why it is unlikely that DT would face new competition in the market for retail fixed-line telecommunication services prior to 1996 is because if any entrant join the
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market would have to invest a large amount of money to develop a network infrastructure in order to provide telecommunication services, this results in no entrant would like to join the market, makes DT become a very strong monopolist in the telecommunication market, so they won't face any new competition in the market prior 1996. (c) Local-level wholesale access to DT's fixed-telephone network can take two different forms. One way DT was permitted to provide access to its networks was line sharing, whereby competitors pay fees for shared use of local loops. Line sharing permits an incumbent firm--"DT" to continue offering voice telephony services and use the same line to permit an entrant to offer a new service, like high-speed Internet access. From a technical perspective, voice and data line sharing are achieved by connecting a splitter and multiplexer between the incumbent's switch and the local loop. Under line-sharing
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