The Law concerning the Structure of Posts and Telecommunications of July 1, 1989, stipulates the restructuring of the former Deutsche Bundespost ("Postal reform I"). The new structure brings about the following organizational and regulatory changes:
- Separation of Deutsche Bundespost into three sectors - Deutsche Bundespost Postdienst, Deutsche Bundespost Postbank and Deutsche Bundespost Telekom
- Separation of the regulatory/political area from the managerial/operational area
- Establishment of management and supervisory boards for the public companies
- Creation of a Board of Directors to which the management board chairpersons of the three companies belong
- Establishment of a Council for Infrastructural Matters in the responsible federal ministry
- Conversion of the companies' customer relationships from public to private law
- Dissolution of the monopoly on telecommunication terminals
