BUSINESSWEEK ONLINE : FEBRUARY 22, 1999 ISSUE
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INTERNATIONAL -- EUROPEAN BUSINESS

Winners and Losers in Germany's Phone Wars


DEUTSCHE TELEKOM
Connection costs will price most competitors out of the market for local phone service. Deutsche Telekom is likely to remain dominant for years to come.


BIG COMPETITORS
Companies such as Mannesmann Arcor won't be able to offer local phone service to most customers profitably. They will have to focus on businesses and users willing to pay for premium services.


SMALLER COMPETITORS
Most won't be able to afford the equipment needed to offer local service. They will be forced to merge or fold as long-distance prices hit bottom and service becomes the key selling point.


DATA: BUSINESS WEEK


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