This report covers Germany and Austria, two key and influential European telecom markets. Trends and developments in telecommunications, mobile, Internet, broadband, digital TV and converging media including VoIP, VoD and IPTV developments. Subjects include:
BuddeComm’s latest Germany and Austria Annual Publication, ‘2007 Telecoms, Mobile and Broadband in Germany and Austria’, profiles two of Europe’s major telecom markets. The countries enjoy a common language and border, while telcos have made effective use of network sharing opportunities and operating synergies. Germany has Europe’s largest telecom market, supported by an affluent and tech-savvy population of more than 82 million. The incumbent, Deutsche Telekom, is one of Europe’s major companies and one of the largest telcos. The country’s broadband sector will provide considerable opportunities in coming years, partly through the size of the market and partly through investments in network upgrades which will encourage a range of IP-delivered services. Deutsche Telekom has continued to expand its national hybrid fibre and VDSL infrastructure, reaching more than 20 major cities by the end of 2007. 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 opportunities in central and eastern Europe. Austria’s topography encouraged the early development of cable networks which have been upgraded to provide a sound platform for triple play services such as iTV, VoIP and VoD.
This report presents an overview of the telecom markets in these two important 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 to 2017 based on factors such as network 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.
Key Highlights Germany’s digital TV market grew strongly in 2007 with a number of regions switching from analogue transmission. The potential audience of the digital network, being built by Deutsche Telekom’s T-Systems division, reached 64 million by the end of the year, while digital take-up approached 20%.
Triple play remains a developing market in Germany, but consumer take-up accelerated strongly in 2007. With more than ten providers offering services on a single platform, growth in 2008 is expected to be particularly strong. In addition to increased investment in cable network upgrades, delivering the required bandwidth, the DSL network of Deutsche Telekom will provide 50Mb/s to most of the country be the end of the decade.
Deutsche Telekom’s fibre/VDSL network, one of the largest undertakings in Europe, had gone live in 22 cities by the end of 2007. The 3 billion all-IP Next Generation Network forms a key strategic platform, enabling the company to take advantage of consumers’ appetite for services and content.
The mobile markets in Germany and Austria remain fiercely competitive, with a growing number of MVNOs battling for customers. Operators have invested heavily in upgrading networks with HSDPA technology, and have promoted cheaper data rates to stimulate consumer take-up of high-bandwidth services.
Germany’s broadband subscriber base continued to develop well in 2007, spurred by the incumbent’s increasing coverage of its 50Mb/s service and by the successful business models of municipally owned and private network operators such as QSC; HanseNet and NetCologne.
Although Germany has a fragmented cable market the sector underwent further consolidation in 2007, with KDG expanding its presence in eight states in October. The country has a few major cablecos which can take advantage of scale to invest in network upgrades and so take compete effectively with ubiquitous DSL.
Broadband subscribers and penetration - 2006 - 2008
Year Subscribers Penetration Subscribers Penetration
2006 14,902,000 14% 1,440,000 16%
2007 (July) 17,401,000 20% 1,524,900 20%
2007 (e) 20,150,000 24% 1,920,000 24%
2008 (e) 28,495,000 34% 2,350,000 30%
(Source: BuddeComm based on industry data)
For those needing high level strategic information and objective analysis on this region, this report is essential reading and gives further information on:
Regulatory policies affecting Deutsche Telekom’s VDSL network build;
Developing mobile TV business models;
The growing demand for VoD and triple play services stimulating higher bandwidth connections;
The changing face of converged media with widespread triple play services becoming a standard feature in homes.