Question

1. In what forms could local-level wholesale access to DT’s fixed-telephone network take? Describe the price structure for wholesale access to this network. Describe how wholesale DT’s wholesale prices were regulated.

Answer 1

Line sharing was one why DT was permitted to provide access to its network. Under linesharing agreements, competitors paid fees for shared use of the local loops and used the same line as DT. In contrast, DT was also permitted to provide full unbundled wholesaleaccess to its network. Under full unbundled access, market entrants took over complete control of selected local loops.

Pricing for unbundled access consisted of a monthly access charge combined with either a one-off charge for establishing a new connection or a one-off charge for taking over an existing serviceable connection.

Wholesale prices to DT’s network were regulated based on costs.