The local loop is the connection between the local exchange or the main distribution frame and the subscriber's TAE (ger. "Telekommunikations-Anschluss-Einheit" or telecommunications connection unit / TAE socket). In most cases, this "last mile" is made of copper and can be used for DSL. TC providers without their own network rent the local loop from Telekom and pay a rental fee for it. The amount of the fee is regularly set by the Federal Network Agency and lies somewhere between the Telekom's demand and the competitors' offer. If competitors have built their network up to the grey cable junction boxes at the roadside, they pay the cheaper cable junction local loop.

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