Overview of the postal market
Overview of the postal market
Excerpt from the RegTP's annual report 2001
Postal Sector
Public Petitions and Consumer Protection
By far the largest number of enquiries about postal matters were made to RegTP over the telephone. Altogether, some 1,700 calls were received in 2001. About half of these requested general information, and about 30 percent information on the letter and parcel markets. Under Section 5 of the Postal Universal Service Ordinance (PUDLV) every individual is entitled to submit written proposals to RegTP for measures to ensure prescribed quality standards. Some of the submissions did not – strictly speaking – comply with the Section 5 criteria, according to which the public petition can only propose measures to guarantee the quality standards. But this is often a question of definition. The following will therefore deal with consumers' submissions as a whole.
RegTP received a total of 510 petitions and similar proposals in the year under review. These can be broken down as follows:
Petitions on postal matters
Delivery Outlets Prices, service Lost letters, delivery times Other Total
142 177 65 64 62 510
Following up information from consumers, RegTP was forced to conclude on several occasions last year that fixed facility coverage fell short of the statutory requirements. In six cases, RegTP was able to intervene successfully to have a fixed facility reinstated. In another case, closure was averted and in four cases still running, Deutsche Post AG (DPAG) has given a written assurance that an outlet will be provided. More and more of the submissions are now concerned with liability issues. Until the Postal Services Ordinance was enacted on 25 August 2001, RegTP could only refer consumers to carriers' standard terms and conditions, propose that they seek agreement with the carrier, or recommend that they contact a consumer association or the courts.
Now that the Ordinance is in force, RegTP has a further consumer protection function. The Ordinance enables RegTP to intervene as a conciliator – in questions of liability, too – provided the consumer was not able to resolve the dispute directly with the provider beforehand. Soon after enactment, RegTP received the first requests for conciliation. Its aim, in dealing with these true to the spirit as well as the letter of the Ordinance, is to bring about a satisfactory arrangement for both parties promptly. RegTP is considering whether or not it is necessary to draw up separate procedural rules, based on the experience it has gained.
Universal Services
The Postal Universal Service Ordinance (PUDLV) is the criterion by which RegTP establishes whether or not the postal services designated as universal services are being provided in line with the minimum quality standards and appropriately and adequately. The PUDLV, as amended on 15 December 1999, does not commit any company – not DPAG, either – to provide the services defined therein.
Fixed Facilities
Under the PUDLV there must be a minimum of 12,000 fixed-location facilities across the country to provide letter and parcel delivery services. At least 5,000 of these 12,000 facilities must be operated by DPAG's own staff.
The fixed facilities in Germany for the last five years are listed below:
Total Operated by own staff
12/1997 15,331 10,095
12/1998 14,482 7,946
12/1999 13,948 5,956
12/2000 13,663 5,590
12/2001 12,818 5,331
Source: Deutsche Post AG
Fixed Facility Checks
RegTP began in 2001 to check compliance with the criteria of the PUDLV not just in response to public petitions but systematically by virtue of its office. To do so, it devised a system of spot checks. The trials have now been completed and the system will become operational in 2002.
Jobs in the Postal Market
Number of persons employed in 2000 in the licensed area (annual average)
(Final figures for 2001 not available at the time of publication)
DP AG Licence holders Other licence holders*)
Full time (persons working 35 or more hours a week) 107.000 4.535 10
Part time (persons for whom the categories Full time and In insignificant employment do not apply) 58.500 5.005 10
In insignificant employment (persons employed under the DM 630 rule) 1.273 11.015 16.500
In insignificant employment and liable to social insurance contributions 17 10.765 5.500
*) Holders of a so-called old-type licence issued before the Postal Act, currently working solely for DPAG
The table shows that almost 99 percent of those employed by licence holders issued a licence as from 1998 under the Postal Act (PostG) are liable to social insurance contributions. Companies operating under an old-type licence (licence granted before the Postal Act came into force and valid until the end of 2007, for the conveyance of large mailings not exceeding 100g per piece in weight) are not required to submit figures.
Persons employed by Licence Holders by Federal State:
Full time Part time In insignificant employment
Baden-Württemberg 142 375 300*)
Bavaria 255 29 99
Berlin 311 96 33
Brandenburg 104 60 411
Bremen 0 3 6
Hamburg 1765 986 251
Hesse 292 274 137
Mecklenburg-Western Pomerania 137 75 1743
Lower Saxony 521 256 757
North-Rhine/Westphalia 437 2258 4178
Rhineland-Palatinate 38 17 74
Saarland 3 1 32
Saxony 235 399 2190
Saxony-Anhalt 163 94 564
Schleswig-Holstein 19 13 78
Thuringia 113 69 162
*) Not including around 16,500 persons employed by the holder of an old-type licence working solely for DPAG.
At the end of 2000 the licence holders provided 20,000 new – not transferred from DPAG – jobs. These jobs would not exist, were it not for the licence holders' activities. The majority are not, as might be expected, in city regions but in structurally weaker areas (see chart on previous page).
DPAG workforce (letter market):
1997 1998 1999 2000
Total*) 153.467 147.043 142.332 140.613
*) Staff at year's end, rounded up to full-time staff
Source: DPAG (incomplete sales prospectus, Annual Report 2000)
Thus between late 1997 and late 2000, DPAG has shed the equivalent of some 12,850 full time jobs (- 8.4 percent), not as a result of falling revenues or sales in the letter market, since it has recorded a steady increase in both since the beginning of 1998 (around 9 percent and 11 percent respectively).
Postal Services Market
Letter Delivery Times
The Postal Universal Services Ordinance (PUDLV) requires, on average over the year, at least 80 percent of domestic letters posted on a working day – excluding large mailings with a minimum of 50 letters per mailing – to be delivered on the first day after posting (D + 1) and 95 percent by the second working day after posting (D + 2).
To this end, RegTP monitors the quality of the letter service by measuring the delivery times achieved by DPAG (as the dominant company with around 98 percent of the market). Measurements are made on a continuous basis, across the country. The results can be used to calculate the delivery times as seen by the customer (from sender to addressee, as set out in the PUDLV), and the operator (from the operating system of the provider [DPAG] to the addressee).
Delivery time for the customer means the time between posting a letter in a post box or at one of the operator's acceptance points at the normal times of business or day, and receipt by the addressee. The time starts as soon as the letter is out of the customer's hands. Measured, then, is the time from end to end, from sender to addressee. Variable closing times do not have any bearing on the results of this method. For the purposes of the PUDLV, only the delivery times from the consumer's point of view are relevant. As it is an ordinance designed to protect the consumer, all that matters is on which day the letter was posted, and not on which working day it was collected.
Delivery Time for the Customer
Period E + 1 [%] (1) E +2 [%] (2)
1998 (average) 88.1 98.9
1999 (average) 86.0 98.8
2000 (average) 86.7 99.0
1st quarter 2001 86.0 98.9
2nd quarter 2001 86.5 99.0
3rd quarter 2001 87.3 98.8
4th quarter 2001 86.4 98.5
PUDLV minimum 80.0 95.0
1) Proportion of letters delivered within one working day of posting
2) 2) Proportion of letters delivered within two working days of posting
Parcel Delivery Times
These are also overseen by RegTP. At present, universal service in the parcel market (delivery of addressed parcels not exceeding 20kg in weight) is provided by the market players jointly. Thus RegTP must check whether or not they collectively meet the statutory requirements. Multi-company results must therefore be included in the measurement of delivery times. RegTP will adapt its procedures however to match the change in the legal situation. It has developed a computerised system for sampling that uses tracking and tracing. Addressed parcels weighing not more than 20kg and whose dimensions comply with those of the Universal Postal Convention, and standard parcels are used. The first trials have now begun, and indicate that the targets of the PUDLV can be met.
Effect on Universal Service of the Second Amendment to the Postal Act
The German Bundestag and the Bundesrat have adopted the Second Amendment to the Postal Act. This also entails an amendment to the PUDLV. For universal service, there will be the following changes:
In future, the Postal Act will commit DPAG – and not the licence holders in their totality, as before – to provide universal service as defined by the PUDLV for the period of the statutory exclusive licence (to 31 December 2007). For the consumer, it means that the total number of fixed-location facilities as well as the number of those manned by the company's own staff will remain unchanged until 31 December 2007. Additionally, there must be a fixed facility in all communities of more than 2,000 inhabitants (previously 4,000 inhabitants). However, the distance rule (2,000 metres) will continue to apply only in communities of more than 4,000 inhabitants or in communities with centralised functions. There will also have to be a minimum of one fixed facility per 80 sq km in every district. Not only the collection times themselves but also the time of the next collection will have to be indicated on the letter boxes. And finally, committing DPAG to provide universal service means that the quality standards for parcel delivery will relate solely to the performance of that company.
Letter Prices and Comparative Price Levels
The prices charged by DPAG as of 31 December 2001 for the main products within the scope of its exclusive licence were as follows:
Postcard 1.00 DM
Standard letter < 20 g 1.10 DM
Compact letter < 50 g 2.20 DM
Large letter < 200 g 3.00 DM
Maxi letter < 200 g 4.40 DM
The price level obtained (prices weighted by volume) is thus DM 1.58.
where m1, m2 … mn = volume of products / services
M = total volume (M = m1 + m2 … + mn)
P1, P2 … Pn = prices for products / services
Taken is the volume of products sold and fully paid for in Germany. The price level for 2001 in itself says very little; it only becomes meaningful over time, when it can be compared with the price levels of other companies or by international standards. Comparing year-on-year prices in Germany provides no information, as prices have not changed since September 1997. Nor can a comparison be made with the prices charged by other companies in Germany, since DPAG's restricted statutory monopoly currently prevents others from offering these products.
What is feasible, however, is an international comparison covering various products with different pricing and weight structures (see chart below). It also irons out differences that could distort the comparison if it were restricted to one product only – say a standard letter weighing not more than 20g.
Prices/weights for letters up to 50g
Price/weight structures for letters up to 50g D[DM] UK[£] A[ÖS] GR[DRA] F[Ff] USA[$] B[Bfr]
Standard letter (up to 20g) 1.10 0.27 7 120 3.00 0.33 17.00
Compact letter (20-50g) 2.20 0.27 8 160 4.50 0.55 32.00
Compact versus standard letter + 100 % + 0 % + 14 % + 33 % + 50 % + 67 % + 88 %
Procedure:
Several products with a range of price and weight structures were looked at. This offset methodical differences that could distort a comparison of one product only, such as a standard letter not exceeding 20g in weight. Peer countries were the EU countries, Norway, Switzerland, the US, Canada, Australia, New Zealand and Japan. Peer products were those that most closely matched DPAG's products postcard, standard letter, compact letter, large letter and maxi letter. Compared were the fastest delivery times in the ordinary letter service for which – as in Germany – there are no guaranteed, but expected, non-binding, delivery times.
The price for each peer product was established in the national currency. It was then weighted, as before, by the volume of the product sold and paid for in full. The weighted prices, added together, represent the price level in the respective national currency. These price levels were then converted into deutschmarks, using the purchasing power parities (PPPs) calculated by the Federal Statistical Office. The weighted goods and services included in the German basket are representative of the total consumption expenditure (excluding rents and car purchases) of all German households.
The delivery times for the peer products chosen differed (D + 1 to D + 3). This begged the question of whether, and to what extent, consumers have to pay for faster delivery if all they want is a set of basic services throughout the country, at affordable prices. Initially, faster delivery times impact only on costs. The US Postal Rate Commission has estimated, for instance, that cutting delivery times in the USA from D + 2 to D + 1 for the zone up to 600 miles (approx 1,000km) would mean higher costs of around 10 percent in the delivery chain as a whole. The extent to which such costs can be passed on to the consumer via the price depends on the intensity of competition; under a monopoly, at any rate, it is possible.
Converting the price levels into deutschmarks using OECD purchasing power parities is not appropriate here, since these parities are established with a US basket which is not representative of Germany. Also, expenditure on letter items is consumption expenditure, ie all the conversion methods based not on consumption expenditure but on costs or wages, distort the result. For the consumer, all that matters is price.
The comparative price levels are shown on the chart overleaf (RegTP has the detailed input data and results to hand; also the underlying volumes of products paid for in full – figures which are not intended for publication, however).
Price Levels for Letters
Postal Licences
DPAG has a statutory exclusive licence until 31 December 2007. The scope of the licence is detailed in Section 51(1) sentence 1 in conjunction with sentence 2 of the Postal Act. Hence until the end of 2007 providers other than DPAG can supply the following services which, by virtue of their definition in Section 51(1) sentence 2 of the Postal Act, do not come under DPAG's restricted monopoly.
A conveying on a profit basis letters weighing between 200 and 1,000 grammes, and/or letters costing more than five times the price payable on 31 December 1997 for corresponding postal items in the lowest weight category;
B conveying on a profit basis letters with identical contents and weighing over 50 grammes, with at least 50 letters per mailing;
C conveying on a profit basis letters delivered by the sender to a document exchange and collected by the addressee from the same or another exchange operated by the same service provider, with the sender and addressee using the service under a permanent contract;
D services distinct from universal services, with special features and of higher quality;
E conveying on a profit basis letters collected on the sender's behalf from the sender and taken to the nearest DPAG acceptance point or another within the same community;
F conveying on a profit basis letters collected on the addressee's behalf from DPAG PO boxes and delivered to the addressee.
Applications and Licences
1998 1999 2000 2001 Total
Applications 385 297 211 287 1,180
Licences granted 382 291 208 187 1,070
Licences denied 3 1 0 0 4
Applications / Licence holders / Exits in 2001
Applications Licence holders Exits
01/01 970 859 92
02/01 1,024 877 108
03/01 1,056 906 127
04/01 1,092 932 133
05/01 1,115 957 148
06/01 1,130 970 153
07/01 1,150 989 178
08/01 1,154 1,014 188
09/01 1,162 1,037 189
10/01 1,153 1,056 210
11/01 1,169 1,063 218
12/01 1,180 1,070 221
Use of Licence Rights
A licence authorises its holder to perform the activities specified in their application, in accordance with the Postal Act and associated ordinances. The licence does not, however, oblige the holder to take up the activity as such; whether or not, and when, holders do so depends entirely on their business plan.
At the end of 2001, 698 of the 1,070 operators licensed were active in the market. 151 out of the remaining 372 were not or no longer operating, 139 holders had surrendered their licences for various reasons, 38 companies had been dissolved, 15 holders had discontinued business and 26 are at present the subject of insolvency proceedings. Three licences were revoked because facts came to light which justified the assumption that the holders did not have the efficiency and reliability necessary to exercise the licence rights. To date, 221 licence holders have exited the market, due to terminating their business or bankruptcy, 134 of these since 1 January 2001.
Exits from the Market
1999 2000 2001
1st quarter 2nd quarter 3rd quarter 4th quarter 1st quarter 2nd quarter 3rd quarter 4th quarter Total
17 25 14 21 10 40 26 36 32 221
Licence Checks
Licences are granted upon application if the requirements are met ie if there are no grounds for denial at the time the licence is issued. Subsequently, the licence holder must make sure that this continues to be the case. Compliance is regularly monitored by RegTP. If faults are found, the licence holder is given a certain period of time in which to take remedial action. If the holder duly remedies the faults and informs RegTP accordingly, a follow-up check is made three months later to determine whether or not the faults have actually been eliminated for good. If the holder fails to remedy the faults within the given period, proceedings may be instituted, which could ultimately result in all or part of the licence being revoked.
Results of Checks
To date, RegTP has carried out checks after licence grant on 650 providers of licensed postal services. Additional, non-routine, checks were made in more than 30 cases in light of special circumstances. All in all, the regular checks have produced a positive picture. No serious breaches of licence conditions have been found. This was also true in respect of working conditions. More than 95 percent of employees were liable to social insurance contributions at the time of the check. And in general, faults found could be eliminated on site.
The non-routine checks showed a number of providers to be operating without a licence. This was mostly due to unfamiliarity with the legal situation. Meanwhile, the companies concerned have applied for, and been granted, the licence they need. One of the non-routine checks led to revocation of the licence granted in 1998. Administrative fines proceedings were initiated in six cases. In five, fines of between DM 1,000 and DM 30,000 were imposed, while proceedings were discontinued in the sixth.
Situation and Trends in the Postal Services Market
The German postal services market generated revenues of more than DM 44 billion in 2001. Around two thirds of the market – essentially, express and parcel services, but also parts of the letter market – are already open to competition. Slightly less than two thirds of the revenues was generated by DPAG. The remaining third was shared by a number of providers, most notably providers of courier, express and parcel services.
Revenues of around DM 22 billion are forecast for 2001 in the licensed area (conveyance of letters not exceeding 1,000g in weight). DPAG continues to hold around 98 percent of the market, even though certain areas have been opened to competition.
Market Study
RegTP ran a market study in early 2001 among the licence holders, requesting data on their revenues and sales for 2000 (results) and 2001 (forecast or expected figures).
Revenues and Sales from Licensed Services (DPAG's included)
1998 1999 2000 2001 (Prognose)
Revenues Sales Revenues Sales Revenues Sales Revenues Sales
DM Volume DM Volume DM Volume DM Volume
19.2bn 15.0bn 19.6bn 15.45bn 21,1bn 16,5bn 22,0bn 17,4bn
The figures for 1998, 1999 und 2000 are actual figures (data from providers); figures for 2001 are forecast figures derived from providers' expected sales and volumes.
Licence Holders' Revenues (excluding DPAG's) [DM million]
Licensed Services 1998 1999 2000 2001 (Forecast)
A Letters > 200g or > DM 5.50 30.5 60.9 64.4 70
B Letters with identical contents > 50g 19.1 17.2 117.8 175
C Document exchange 0.3 1,6 0,9 1
D Higher quality services 6.7 45,6 90,9 150
E Mailing at DPAG acceptance points 2.5 3.7 7.9 11
F Collection from DPAG PO box facilities 2.5 3.7 57 8
Old-type licences (large mailings) 90.3 119.7 52.2 60
Total 151.9 252.4 339.8 475
Figures for 1998, 1999 and 2000 are actual figures; figures for 2001 are based on forecasts.
Breakdown of Revenues by Activity
The licence holders seek to add value to services; the trend is clearly towards the higher quality services of the so-called D licence. In terms of revenue, these services accounted for some 30 percent of the market in 2001. There was no growth in the share of simple transport services (notably old-type and B licences), which remained around 50 percent.
Market for Licensed Postal Services
Market Shares for Licensed Services (including statutory monopoly services)
1998 1999 2000 2001(forecast)
Total revenues (DM million) 19,200 19,600 21,126 22,000
Licence holders' revenues (excluding DPAG's) (DM million) 151.9 252.4 339.8 475
Licence holders' market shares (%) 0.8 1.3 1.6 2.2
DPAG's market share (%) 99.2 98.7 98.4 97.8
Revenues from D licences (DM million) 6.7 45.6 90.9 150
D licence holders' share of the market (%) 0.03 0.24 0.43 0.7
By 2000 – that is, after three years – licence holders had captured only 1.6 percent of the market for the delivery of letters not exceeding 1000g in weight; DPAG still commands 98.4 percent. The revenues generated by the licence holders altogether (DM 340 million) also fell far short in 2000 of DPAG's growth in revenues (> DM 700 million). According to the forecast for 2001 (final figures are not yet available), licence holders' share could increase to 2.2 percent. Thus DPAG would still have 97.8 percent of the market, albeit a market whose volume had meanwhile grown by 14 percent.
Shares in the Fully Liberalised Letter Market
The delivery of letters weighing 200g and over or costing more than DM 5.50 and the delivery of letter items with identical contents and weighing over 50g (minumum of 50 items per mailing) are fully liberalised services that can be provided by licence holders without any further requirements; in particular, added value is not stipulated.
1998 1999 2000 2001(forecast)
Total revenues (DM million) ~ 4,100 4,300 4,500 4,725
Licence holders' revenues (excluding DPAG's) (DM million) 140 198 234 305
Licence holders' share (%) 3.4 4.6 5.2 6.5
G's share (%) 96.4 95.4 94.8 93.5
By 2000 – that is, after three years – the licence holders held only 5.2 percent of the market. This figure could climb to 6.5 percent, however, according to the forecast for 2001. DPAG would then still have 93.5 percent of this fully liberalised segment, the volume of which had grown by 15 percent.
Incidental Services; Access to PO Box Facilities and Changes of Address
To encourage competition in the market for licensed postal services, provision was made in Sections 28 and 29 of the Postal Act for access to the infrastructure of the dominant provider. To prevent anti-competitive behaviour, all such agreements were first to be submitted to RegTP.
Incidental Services
Incidental services within the meaning of Section 28 of the Postal Act are the specific activities within the value chain that are not performed by the competitors themselves. Competitors are entitled to these incidental services from a dominant provider of licensed postal services. RegTP determinations issued in September 2000 allowed both competitors and end customers, for the first time, to hand over mail at DPAG's mail sorting centres (incoming and outgoing processing). The structure and number of such contracts duly concluded in 2001 and submitted to RegTP are shown in the table below.
Incidental service contracts in 2001Total: 269 concluded with…
end customers:265 competitors:4
…for the delivery of…
individual letteritems:245 letter items with identical contents:20 individual letteritems:3 letter items with identical contents:1
…with mail handover at…
mail centre (outgoing processing)100 mail centre (incoming processing)145 mail centre (incoming processing)20 mail centre (outgoing processing)1 mail centre (incoming processing)2 mail centre (incoming processing)1
By 2000 – that is, after three years – the licence holders held only 5.2 percent of the market. This figure could climb to 6.5 percent, however, according to the forecast for 2001. DPAG would then still have 93.5 percent of this fully liberalised segment, the volume of which had grown by 15 percent.
PO Box Facilities
Under Section 29(1) of the Postal Act, a dominant provider of licensed postal services must allow other postal service providers to deliver mail to its PO box facilities, against payment of a fee. DPAG concluded and submitted to RegTP 20 such agreements in 2001 (figures as of 31 December 2001). As regards pricing, five of the contracts were based on RegTP determinations, and the rest on negotiations with DPAG.
Access to Change of Address Information
Section 29(2) in conjunction with subsection (1) of the Postal Act commits a dominant provider of licensed postal services to allow other postal service providers access to its information on changes of address, against payment of a fee. In 2001, 27 contracts were signed for access to change of address information and submitted to RegTP. Of these, 24 were for the transmission of updated addresses at the provider's request ("New for Old" scheme), and three for the automatic transmission of change of address data. The rates payable in eleven of the contracts were based on RegTP rulings and those in the remaining 16 were negotiated with DPAG, without the regulator's intervention.
Legal Proceedings
DPAG continued in the year under review to contest the award of licences to providers of higher quality services. It therefore applied to the administrative courts for rescission of the licences, and also to the civil courts for injunctions to prevent the licensed companies from providing these services. For many of these companies, most of which were startups, the financial risk of legal proceedings posed a threat to their very survival. In the course of the year, however, DPAG scaled back its legal action, as shown in the following.
Administrative Court Proceedings
In originally more than 600 cases, DPAG took action before Cologne administrative court to rescind licences granted for higher quality services. After the court's ruling in 1999 that same-day delivery constituted higher value as defined by Section 51(1) sentence 2 no 4 of the Postal Act, DPAG began in early 2001 withdrawing its complaints against the holders of these licences. Cologne administrative court has already ruled on several test cases, determining that same-day – but not overnight delivery (collection from 17:00 hours and delivery by 12:00 hours the next day) – qualifies as a higher quality service. The court also pronounced in favour of the competitors on 13 November 2001 when it dismissed action by DPAG contesting licence grant to competitors for day-certain delivery. In this, the court endorsed RegTP's view that day-certain delivery had added value as well and thus did not fall under the exclusive licence. It stated that day-certain services could not be regarded as universal services and were likely to be advantageous for the customer whenever timing was crucial to the economic or legal success of a business transaction.
DPAG also brought action before the court in respect of access to its PO box facilities for providers not delivering on the same, but on the next day, contesting the licences of the providers in summary proceedings.
Here, the court ruled in favour of DPAG in light of its position that overnight delivery infringed Section 51 of the Postal Act. However, the higher administrative court in Münster then suspended the appeal proceedings, provisionally ruling in favour of the licence holders.
A decision from the Münster court on RegTP's disputed licence award to providers of services according to Section 51(1) sentence 2 no 4 of the Postal Act has not yet been taken, but is expected in 2002. However, a final decision is only likely after the matter has gone to the Federal Administrative Court, and thus not in the near future.
Civil Court Proceedings
Parallel to the action brought before the administrative courts, DPAG on many occasions instituted civil court proceedings against higher quality service providers. Recourse to the civil courts was gradually discontinued in 2001, however. To current knowledge, there are no more civil proceedings pending in which DPAG has sought injunctions to prevent licence holders from offering services according to Section 51(1) sentence 2 no 4 of the Postal Act.
Ceasing its appeals to the civil courts meant that DPAG had removed the grounds for four proceedings on points of law pending at the Federal Court of Justice. Thus for the time being there will be no decision by the highest court clarifying higher quality services and providing the legal certainty desired by the licence holders.
The case law of the regional and higher regional courts differs. A ruling has not yet been made by either the Federal Court of Justice or the Federal Administrative Court on the services that are to qualify as higher quality and which do not therefore fall under the scope of DPAG's exclusive licence. However, RegTP's interpretation of higher quality is shared by a clear majority of the higher regional courts: five judgments have supported the licence holders as opposed to one against.
