The existence of the remaining monopolies (posts, telephone and network monopolies) is also limited by law to the end of 1997. On 1 August 1996 the Telecommunications Act entered into force. This act established the regulatory framework for a liberalization of the telecommunications market as of 1 January 1998 and ended the monopoly on networks with immediate effect. As of 1 January 1998, a license will be required for operation of fixed-network and voice telephony services.

The entire European telecommunications market will be deregulated by 1 January 1998. Until then, the Federal Ministry of Posts and Telecommunications will assume the functions of a deregulation authority in the Federal Republic. The transition to a private enterprise system is to be controlled and monopoly positions of individual firms in the various markets avoided.