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Germany - Telecoms, IP Networks and Digital Media

This annual report offers a wealth of information on the trends and developments in fixed-line and mobile telephony, broadband, digital media, convergence and new technologies in Germany. Subjects include:

  • Key country and telecom statistics;
  • Market and industry overviews;
  • Regulatory environment;
  • Major players (fixed and mobile);
  • Infrastructure;
  • Mobile voice and data markets;
  • Digital TV;
  • Converging media, including VoIP, VoD and IPTV;
  • Broadband (fixed and mobile).
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BuddeComm’s annual publication, Germany - Telecoms, IP Networks and Digital Media, provides a comprehensive overview of the trends and developments in the telecommunications and digital media markets in Germany.

Germany’s telecom market is supported by one of the largest and more affluent populations in Europe. The sector’s total turnover was about €63 billion in 2008, down more than 3% from 2007. Alternative operators account for 53% of market revenue, compared with only 26% in 1998, while they also account for 58% of total sector investment. The market is expected to remain stagnant in coming years, though propped up by data services and mobile telephony.

The incumbent, Deutsche Telekom, remains one of Europe’s major telcos, with a significant international presence. Domestically, the company has fared badly in recent years, being plagued by regulatory measures as well as by a workforce which is both too large and protected by its part civil-service status. In addition, DT, still 15% owned by the State, has drawn rebuke from the national regulator and the EC for its attempt to retain a monopoly on its all-IP NGN infrastructure. DT’s current streamlining and restructuring is a painful yet necessary procedure if it is to compete successfully against stiffening competition. The other main players, including Vodafone’s Arcor and freenet (which bought up mobilcom and debitel), provide extensive triple- and quad-play services, and offer effective competition in all sectors.

Germany’s broadband market benefits from excellent cross-platform competition. The cable sector has undergone considerable consolidation in recent years, though a proposed merger of the major operators KDG, Kabel BW and Unitymedia, which would have created a nationwide cable network operator, was halted by the authorities in April 2009 as anti-competitive. The DSL sector has benefited from regulatory measures to promote LLU and bitstream access. DT’s own VDSL network, originally planned to be built entirely ‘in-house,’ has recently been expanded with co-operation from numerous other players in a bid to reduce costs and expand the network more quickly and effectively.

Key highlights:

  • Germany’s digital TV transition was undertaken swiftly; in December 2008 network operator, Media Broadcast, had completed analogue switchover, having begun the process in 2003. Almost all residences can receive digital TV, though services are still dominated by digital cable and satellite rather than digital terrestrial.
  • Triple play is a rapidly developing market in Germany. By early 2009 almost 20% of the population subscribed to a bundled service, mostly broadband and telephony. In coming years the sector will be driven by the entry of a growing number of telcos into the market, cheaper services for consumers, and the greater availability of upgraded networks.
  • Germany’s VDSL network has been extended in 2009 through co-operative ventures between DT and utilities as well as its competitors including Arcor, Versatel, Hansenet, Telefónica Deutschland, NetCologne and QSC.
  • Germany has the largest mobile subscriber base in Europe, with about 107 million subscribers and a penetration rate of around 130%. There is a strong shift among subscribers from 2G to UMTS networks. Operators have largely upgraded their networks with HSDPA technology, and are looking to capitalise on LTE from 2010 while developing business models to encourage further consumer use of higher-ARPU mobile data services.
Data in this report is the latest available at the time of preparation and may not be for the current year.

The following notes provide some background to our scenario forecasting methodology:
  • This report includes what we term scenario forecasts. By describing long-range scenarios we identify a band within which we expect market growth to occur. The associated text describes what we see as the most likely growth trend within this band.
  • The projections shown in the tables in this report are based on our own historical information, as well as on telecommunication sector statistics from official and non-official, national and international sources. We assume a possible deviation of 15-20% around this data.
  • All statistics for GDP, revenue, etc, are shown in US$, in order to maintain consistency within and between markets. At the same time we acknowledge that this can introduce some irregularities.

1. Key Statistics
2. Telecommunications Market
2.1 Overview of Germany’s telecom market
2.2 Market analysis
3. Regulatory Environment
3.1 History
3.1.1 EU regulatory framework
3.2 Regulatory authority
3.2.1 Federal Network Agency (BNetzA)
3.3 Telecom sector liberalisation in Germany
3.3.1 Privatisation of Deutsche Telekom
3.3.2 Interconnect
3.3.3 Access
3.4 Number Portability
3.5 Carrier PreSelection (CPS)
3.6 Wholesale Line Rental (WLR)
4. Fixed Network Operators in Germany
4.1 Market overview
4.2 Deutsche Telekom
4.2.1 Structural review
4.2.2 Going into 2009
4.2.3 Sales and acquisitions
4.3 Arcor
4.4 freenet
4.5 BT Global Services
4.6 debitel
4.7 Tele2
4.8 Telefónica
5. Telecommunications Infrastructure
5.1 National telecom network
5.2 Next Generation Network (NGN)
5.3 International infrastructure
5.3.1 Submarine cable networks
5.3.2 Satellite networks
5.4 Regulatory issues
5.4.1 Wholesaling
6. Broadband Market
6.1 Overview
6.1.1 Government support
6.1.2 Government broadband strategy
6.1.3 Broadband developments
6.2 Cable modems
6.2.1 Cable market consolidation
6.2.2 Cable players
6.3 Asymmetrical Digital Subscriber Line (ADSL)
6.3.1 T-Home
6.3.2 Other service providers
6.3.3 ADSL2+
6.3.4 VDSL
6.4 Fibre-to-the-Home (FttH) networks
6.4.1 Open access model
6.4.2 Deutsche Telekom
6.4.3 Other developments
6.5 Broadband Powerline (BPL)
6.5.1 Energie Baden-Wurttemberg
6.5.2 Vype (Mannheim)
6.5.3 Power Plus Communications (PPC. AG)
6.5.4 DREWAG (Dresden)
6.6 Wireless broadband
6.6.1 Wireless Local Loop (WLL)
6.6.2 WiMAX/WiFi
6.6.3 Operators
6.6.4 Wireless LANS
6.6.5 Broadband Wireless Access (BWA)
6.6.6 PAMR
6.6.7 Internet via satellite
6.6.8 Mobile broadband
7. Convergence
7.1 Overview of media convergence
7.2 Key general trends
7.3 Triple play models
7.3.1 Operators
7.4 Regulator issues
7.4.1 Voice over Internet Protocol (VoIP)
7.4.2 Fragmented legal framework
7.4.3 Digital TV (DTV)
7.5 Digital TV
7.5.1 Digital Terrestrial TV (DTTV)
7.5.2 Free-to-Air (FTA) broadcasting
7.5.3 Public broadcasters
7.5.4 TV-over-DSL (IPTV)
7.5.5 Video-on-Demand (VoD)
7.5.6 VoIP
7.5.7 Voice over Digital Subscriber Line (VoDSL)
7.5.8 Voice over cable
7.5.9 Personal Video Recorders (PVRs)
7.5.10 Cable TV
7.5.11 Digital cable TV
7.5.12 Satellite TV
8. Mobile Communications
8.1 Overview of Germany’s mobile market
8.1.1 Mobile statistics
8.1.2 Operator market shares
8.2 Regulatory issues
8.2.1 Regulatory authority
8.2.2 Spectrum regulations and spectrum auctions
8.2.3 Roaming
8.2.4 Number portability
8.2.5 Fixed-to-mobile call charges
8.2.6 Mobile Termination Rates (MTRs)
8.3 Mobile technologies
8.3.1 Digital
8.3.2 Fixed-mobile convergence
8.4 Major mobile operators
8.4.1 T-Mobile
8.4.2 Vodafone
8.4.3 E-Plus
8.4.4 O2
8.4.5 Mobile Virtual Network Operators (MVNOs)
8.5 Mobile voice services
8.5.1 Prepaid cards
8.6 Mobile data services
8.6.1 Overview of Germany’s mobile data services market
8.6.2 Regulatory issues
8.6.3 Mobile technologies
8.6.4 Major mobile operators
8.6.5 Mobile data services
9. Forecasts
9.1 Forecasts - broadband subscribers to 2018
9.1.1 Scenario 1 - higher growth broadband subscriber growth
9.1.2 Scenario 2 - lower growth broadband subscriber growth
9.2 Forecasts - mobile market to 2013
9.2.1 Mobile ARPU forecasts to 2013
9.2.2 UMTS forecasts to 2013
10. Glossary of Abbreviations
Table 1 - Country statistics Germany - 2008
Table 2 - Telecom revenue and investment statistics - 2008
Table 3 - Telephone network statistics - 2008
Table 4 - Internet user statistics - March 2009
Table 5 - Broadband statistics - January 2009
Table 6 - Mobile statistics - 2008
Table 7 - National telecommunications authority
Table 8 - New entrants’ market share, select sectors - 2007 - 2008
Table 9 - Telecom market revenue - 1998 - 2008
Table 10 - Competitor telephone lines - 2004 - 2007
Table 11 - Voice lines by technology - 2000 - 2008
Table 12 - Telecoms investments: Deutsche Telekom & competitors - 1998 - 2008
Table 13 - Fixed-network termination charge - 2005 - 2008
Table 14 - Unbundled loops and access lines - 2004 - 2009
Table 15 - LLU, shared access price - connection and monthly rental - 2005 - 2008
Table 16 - Deutsche Telekom unbundled lines - 2007 - 2009
Table 17 - Wholesale IP bitstream pricing - May 2008
Table 18 - Annual fixed-line portings - 2004 - 2007
Table 19 - Fixed network call minutes: Deutsch Telekom & competitors - 2001 - 2008
Table 20 - Fixed network call minutes by type - 1998 - 2008
Table 21 - PreSelection lines - 1999 - 2007
Table 22 - Alternative operator share of call market (traffic) - 2005 - 2007
Table 23 - Telephone channels by operator (VATM data) - 1998 - 2008
Table 24 - Voice traffic in minutes by sector - 2000 - 2007
Table 25 - Deutsche Telekom revenue by segment and annual change - 2007 - 2008
Table 26 - Deutsche Telekom subscribers by sector - 2005 - 2008
Table 27 - Deutsche Telekom Group financial data - 2005 - 2009
Table 28 - Deutsche Telekom Group financial data - Q1 2009
Table 29 - Vodafone fixed-line revenue - 2005 - 2009
Table 30 - Vodafone fixed-line and broadband subscribers by sector - 2006 - 2008
Table 31 - freenet fixed network subscribers by sector - 2005 - 2009
Table 32 - freenet revenue by segment - 2005 - 2009
Table 33 - debitel financial data and subscribers - 2004 - 2007
Table 34 - Tele2 subscriber statistics by sector - 2007 - 2009
Table 35 - Tele2 financial data by sector - 2007 - 2009
Table 36 - Telefónica (O2) subscribers - 2007 - 2009
Table 37 - Telefónica (O2) financial data - 2007 - 2009
Table 38 - Fixed lines in service and teledensity - 2000 - 2008
Table 39 - Internet users and penetration rate - 1999 - 2009
Table 40 - Broadband subscribers by access type and market penetration - 2001 - 2009
Table 41 - Broadband subscribers by type: incumbent, new entrant - 2006 - 2008
Table 42 - Broadband subscribers as share of Internet users - 2002 - 2009
Table 43 - Narrowband Internet traffic in minutes - 1999 - 2008
Table 44 - Broadband Internet traffic in gigabytes - 2001 - 2008
Table 45 - New broadband lines per year / day - 2004 - 2007
Table 46 - DSL broadband subscribers by provider - 2001 - 2008
Table 47 - Proportion of DSL subscribers by provider - 2001 - 2008
Table 48 - Broadband penetration by sector - 2007 - 2009
Table 49 - Cable subscribers - 2000 - 2009
Table 50 - Kabel BW broadband subscribers - 2007 - 2009
Table 51 - Kabel Deutschland financial data - 2007 - 2008
Table 52 - Kabel Deutschland financial data - 9M 2008
Table 53 - Kabel Deutschland subscribers and annual change - 2008
Table 54 - Unitymedia subscribers - 2006 - 2008
Table 55 - Unitymedia financial data - 2006 - 2008
Table 56 - DSL household penetration rate - 2005 - 2009
Table 57 - DT wholesale and resale lines - 2002 - 2008
Table 58 - DSL market share by operator - 2006 - 2007
Table 59 - Versatel financial data and annual change - 2008
Table 60 - Versatel residential subscribers by sector - 2008
Table 61 - United Internet financial data - 2007 - 2009
Table 62 - United Internet subscriber data by technology - 2007 - 2009
Table 63 - Vodafone broadband subscribers - 2006 - 2008
Table 64 - freenet fixed network subscribers by sector - 2005 - 2008
Table 65 - freenet revenue by segment - 2005 - 2008
Table 66 - Telefónica (O2) broadband subscribers - 2007 - 2008
Table 67 - QSC financial data - 2006 - 2008
Table 68 - Satellite broadband subscribers - 2005 - 2009
Table 69 - Subscribers to bundled services - 2007 - 2008
Table 70 - End-user access to TV - 2006 - 2008
Table 71 - DTTV penetration - 2002 - 2009
Table 72 - ProSiebenSat.1 Group financial data - 2007 - 2008
Table 73 - HanseNet financial data - 2007 - 2008
Table 74 - Premiere financial data - 2006 - 2008
Table 75 - Premiere subscribers - 2007 - 2008
Table 76 - Arcor revenue - 2005 - 2008
Table 77 - Arcor subscribers by sector - 2006 - 2008
Table 78 - VoIP traffic in minutes - 2005 - 2008
Table 79 - Cable TV subscribers and penetration rate - 1991 - 2008
Table 80 - Kabel Deutschland subscribers by sector - 2005 - 2008
Table 81 - Kabel Deutschland: TV, Internet & telephony, monthly ARPU - 2005 - 2008
Table 82 - Kabel Deutschland financial data - 2007 - 2008
Table 83 - Kabel Deutschland financial data - 2008
Table 84 - Digital cable TV penetration rate - 2001 - 2009
Table 85 - Digital multichannel households (Germany, Austria) - 2004 - 2008
Table 86 - Unitymedia subscribers - 2006 - 2008
Table 87 - Unitymedia financial data - 2006 - 2008
Table 88 - Unitymedia ARPU by sector - 2006 - 2008
Table 89 - Satellite pay TV subscribers and penetration rate - 1993 - 2008
Table 90 - arena satellite pay TV financial data by sector - 2006 - 2008
Table 91 - arena satellite pay TV subscribers and monthly ARPU - 2006 - 2008
Table 92 - Outgoing mobile traffic in minutes - 1999 - 2008
Table 93 - Mobile operators, subscribers and annual change - June 2008
Table 94 - Mobile subscribers and penetration rate - 1995 - 2008
Table 95 - Mobile market share of subscribers by operator - 2000 - 2008
Table 96 - Share of new subscribers by operator - 2006 - 2008
Table 97 - European roaming charges - 2007 - 2009

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