Germany - Telecommunication Services: Mature yet promising market with challenges (Strategy, Performance and Risk Analysis)
This report provides an in depth analysis into the current and forecast trends of the German telecommunications market, offering reliable data on the deals and competitive company landscapes over the past few years, how demand for improved technological innovations is effecting the voice and internet segments, and an overview of initiatives by the German Government. The German market is considered to be mature yet promising, with low churn rates. This, and much more, is further detailed within the report.
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Mobile data to help add to growth in mobile subscriptions
Currently 77.0% of the German population subscribe to mobile services. Subscriptions increased at a CAGR of 1.2% during the review period, from 109.9 million in 2012 to 115.3 million in 2016 and are expected to reach 130.1 million by 2021, growing at a CAGR of 2.4% over 2016-2021.
Growth in mobile subscriptions is expected due to higher demand for mobile data, especially for video and music streaming, which is supported by the availability of affordable smartphones.
T-Mobile Germany held top position in mobile service revenue
T-Mobile Germany had the highest revenue at US$9,111.0 million in 2016 in the mobile segment despite revenue decreasing from US$10,191.0 million in 2012 to the current level in 2016. Reduction in connections with MagentaEINS acted as an impediment in addition to increased competitive pressure in the business consumer segment. However, it added 230,000 new contract customers.
Decline in overall fixed line revenues
Fixed line service revenues which stood at US$20,777.0 million in 2016 (down at a CAGR of 7.7% during 2012-2016), are expected to remain flat and value US$20,844.0 million in 2021. Internet revenue which is expected to grow at a CAGR of 3.2% over the forecast period to US$12,371.0 million, backed by an increase in internet accounts and penetration, should lend some support to falling fixed line business revenue. The expected increase in Internet revenue will be offset by rapid fall in fixed voice revenues.
Fixed voice revenue is expected to decrease at a CAGR of -4.9% to US$7,477.0 million over 2016-2021.