This report covers Germany and Austria, profiling the two countries central to Europe’s telecom infrastructure and development. Subjects include:
Market and industry analyses, trends and developments
Facts, figures and statistics
Industry and regulatory issues
Research, Marketing, Benchmarking
Major Players, Revenues, Subscribers, Prepaid
VoIP, IPTV, VoD, digital TV and DTTV
BuddeComm’s latest Germany and Austria Annual Publication, ‘2006/2007 Telecoms, Mobile and Broadband in Germany and Austria’, profiles two countries central to Europe’s telecom infrastructure and development. A common language and border as well as close social and economic ties provide some synergies for operators and network sharing opportunities. Germany has Europe’s largest telecom market, while its investment in Europe draws it towards its western neighbours. Austria’s telecom market is one of the smallest in the European Union, yet its advanced and progressive infrastructure has placed its providers in an excellent position to exploit the opportunities in central and eastern Europe, and alleviate domestic pressure caused by a fierce competitive environment. Austria’s mobile and broadband penetration is strong, and its extensive cable footprint has proved to be a secure foundation for meeting customer demand for triple play services such as iTV, VoIP and VoD on both cable and DSL platforms. Germany’s broadband sector is less developed, but promises considerable opportunities in coming years as a result of Deutsche Telekom’s 3 billion investment in network fibre and VDSL infrastructure. Although plagued by the EC’s determination that the new network should be open to competition, once completed it should put the country in a leading position in the use of high-bandwidth services.
This report presents an overview of the telecom markets in these two vibrant countries, including an assessment of sector liberalisation and privatisation, together with the key regulatory measures which affect competition and investment. It also examines the product offerings for the mobile sector, and assesses the latest developments in advanced services such as mobile TV and HSDPA. The important broadband market is assessed, together with forecasts for broadband growth dependant on factors such as investment, the regulatory environment and consumer demand. The report provides essential statistics covering the broadband, mobile and digital TV sectors, highlighting technological developments and the emergence of media convergence and triple play offerings.
Germany’s cable market underwent further consolidation during 2006, with the regional operator ewt buying Tele Columbus. The market has been stimulated by popular demand for high bandwidth applications such as VoD, prompting huge investment in regional cable networks which has strengthened the operators’ ability to carry triple play services ahead to 2007 and contest for customers against Deutsche Telekom.
IPTV remained negligible in Germany in 2006, but DSL and cable upgrades, together with greater customer awareness of the medium, promises strong growth in coming years. Telekom Austria’s aonDigital IPTV offering matured considerably in the year, with a strong channel selection and growing VoD presence.
Deutsche Telekom’s VDSL network went live for three million customers in ten cities in August 2006, providing 50Mb/s services. Dependant on the regulatory environment, a further 40 cities were to be switched on during 2007 in one of the largest infrastructure investments in Europe.
The popularity of VoIP in 2006, together with fixed-mobile substitution, has eroded the fixed-line voice market, prompting the company to look to data services to bolster stagnant revenue, and highlighting consumer awareness of emerging technologies.
The sophisticated mobile markets in Germany and Austria are fiercely competitive, with a growing number of MVNOs battling for customers. 3G has been slow to develop, but during 2006 the sector has shown considerable growth at the expense of GSM. Austria/s 3G take-up is twice that of Germany’s but both countries have shown solid growth and promise to perform well in 2007.
Germany’s DSL subscriber base grew 55% in 2005, and was likely to show about a further 45% growth in 2006 on the strength of the incumbent’s massive investment in network infrastructure, complementing cable improvement which has seen 10Mb/s services extending to a growing number of subscribers.