(Telecompaper) Competition in Germany's telecoms retail markets continues to develop dynamically, according to a Special Report from the Monopolies Commission. The Commission recommends that regulation of subscriber lines in the fixed network should be abandoned, and that the expansion of broadband networks must continue to be market-driven and take place mainly through private investment. It does not believe that a broadband universal service should be an option for the future due to its anti-competitive effects, negative investment incentives and high costs. In places where the expansion of private high-performance broadband networks is not profitable, state aid programmes in line with EU rules can be applied. The Commission also called on the Federal Government to resolve its direct and indirect stake in Deutsche Telekom, because of possible conflicts of interest arising from the simultaneous role as owner and regulator. The proceeds from privatisation could be used to fund broadband expansion.