Abstract
Abstract Technological and regulatory developments are opening the door for competition and new services in the local loop. The reunification of Germany created an opportunity for Deutsche Telekom to install fiber in the loop on a large scale in eastern Germany. Deutsche Telekom's strategy consists of four steps: (1) Fiber in the loop is seen as a process innovation. New broadband services - product innovations - can be based on the process innovation. (2) Only a sufficient number of installations will enable the industry to invest in new products. (3) Besides the local networks equipped with fiber, there is an overlay network for the rapid delivery of fiber access for business customers. (4) The experience gained in eastern Germany will be transferred to western Germany when transforming its existing network structure.
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