2007 Europe - Telecoms, Mobile and Broadband in Germany and Austria

Last updated: 14 Nov 2007 Update History

Report Status: Archived

Report Pages: 146

Analyst: Stephen McNamara

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Summary
Table Of Contents

Publication Overview

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:

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
Convergent media

Executive Summary

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%. For more information, see chapter 1.7.5, page 38.
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. For more information, see chapter 1.7.3, page 36.
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. For more information, see chapter 1.6.4, page 28.
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. For more information, see chapter 2.8.6.6, page 119.
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. For more information, see chapter 1.6.3, page 23.
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. For more information, see chapter 1.7.5.10, page 46.

Broadband subscribers and penetration - 2006 - 2008

	Germany		Austria
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.

Data in this report is the latest available at the time of preparation and may not be for the current year.


1.	GERMANY
1.1	Key statistics
1.2	Telecommunications market
1.2.1	Overview of Germany’s telecom market
1.2.2	Market analysis
1.3	Regulatory environment
1.3.1	History
1.3.2	Regulatory authority
1.3.3	Telecom sector liberalisation in Germany
1.3.4	Number Portability (NP)
1.3.5	Carrier PreSelection (CPS)
1.4	Fixed network operators in Germany
1.4.1	Market overview
1.4.2	Deutsche Telekom
1.4.3	Mannesmann Arcor
1.4.4	mobilcom - freenet
1.4.5	BT Global Services
1.4.6	debitel
1.5	Telecommunications infrastructure
1.5.1	National telecom network
1.5.2	Next Generation Network (NGN)
1.5.3	International infrastructure
1.5.4	Regulatory issues
1.6	Broadband market
1.6.1	Overview
1.6.2	Cable modems
1.6.3	Asymmetrical Digital Subscriber Line (ADSL)
1.6.4	Fibre-to-the-Home (FttH) networks
1.6.5	Broadband Powerline (BPL)
1.6.6	Wireless broadband
1.6.7	Broadband forecasts to 2017
1.7	Convergence
1.7.1	Overview of media convergence
1.7.2	Key general trends
1.7.3	Triple play models
1.7.4	Regulator issues
1.7.5	Digital TV
1.8	Mobile communications
1.8.1	Overview of Germany’s mobile market
1.8.2	Regulatory issues
1.8.3	Mobile technologies
1.8.4	Major mobile operators
1.8.5	Mobile voice services
1.8.6	Mobile data services
2.	AUSTRIA
2.1	Key statistics
2.2	Telecommunications market
2.2.1	Overview of Austria’s telecom market
2.3	Regulatory environment
2.3.1	History
2.3.2	Regulatory authorities
2.3.3	Telecom sector liberalisation in Austria
2.3.4	Number portability (NP)
2.3.5	Carrier PreSelection (CPS)
2.4	Fixed network operators in Austria
2.4.1	Telekom Austria
2.4.2	Tele2UTA
2.4.3	tele.ring
2.4.4	UPC Austria
2.4.5	eTel Austria
2.5	Telecommunications infrastructure
2.5.1	National telecom network
2.5.2	Wholesaling
2.5.3	International infrastructure
2.6	Broadband market
2.6.1	Overview
2.6.2	Cable modems
2.6.3	Asymmetrical Digital Subscriber Line (ADSL)
2.6.4	Fibre-to-the-Home (FttH) networks
2.6.5	Broadband Powerline (BPL)
2.6.6	Wireless broadband
2.6.7	Broadband forecasts to 2017
2.7	Convergence
2.7.1	Overview of media convergence
2.7.2	Key general trends
2.7.3	Triple play models
2.7.4	Regulatory issues
2.7.5	Digital TV
2.8	Mobile communications
2.8.1	Overview of Austria’s mobile market
2.8.2	Regulatory issues
2.8.3	Mobile technologies
2.8.4	Major mobile operators
2.8.5	Mobile voice services
2.8.6	Mobile data services
2.8.7	Mobile applications
3.	GLOSSARY OF ABBREVIATIONS

Exhibit 1 – Germany’s 3G auction winners – August 2000
Exhibit 2 – German 3G network sharing agreements
Exhibit 3 – Selected MMS launches in Europe
Exhibit 4 – WLL licenses in 3.5GHz spectrum – 2004
Exhibit 5 – 450MHz frequency allocation procedure – 2006
Exhibit 6 – 3G licence results

Table 1 - Country statistics Germany – 2007
Table 2 – Telecom revenue and investment statistics – 2006 (e)
Table 3 – Telephone network statistics – 2006
Table 4 – Internet user statistics – June 2007
Table 5 – Broadband statistics – March 2007
Table 6 – Mobile statistics – June 2007
Table 7 – National telecommunications authority
Table 8 – Voice services revenue by sector– 2004 - 2006
Table 9 – Voice traffic volume by sector – 2004 - 2006
Table 10 – Residential fixed-line revenue – 2005 - 2007
Table 11 – Fixed network market and Deutsche Telekom share – 2004 - 2006
Table 12 – Competitor telephone lines – 2004 - 2006
Table 13 – Fixed and mobile channels – 1999 - 2006
Table 14 – Telecoms investments: Deutsche Telekom and competitors – 1998 – 2005*
Table 15 – Fixed-network termination charge – 2005 - 2006
Table 16 – Unbundled loops and access lines – 2004 - 2007
Table 17 – LLU, shared access price - connection and monthly rental – 2004 - 2006
Table 18 – Fixed lines and line portings – 2005 - 2007
Table 19 – Fixed network call minutes: Deutsch Telekom / competitors – 2001 – 2005 *
Table 20 – Alternative operator share of call market – 2005 - 2006
Table 21 – Telephone channels by operator– 1998 - 2006
Table 22 – Deutsche Telekom broadband, fixed network financial and annual change – 2005 - 2006
Table 23 – Deutsche Telekom revenue by segment – 2003 - 2005
Table 24 – Deutsche Telekom mobile, fixed, broadband subscribers and annual change – 2005 - 2007
Table 25 – Deutsche Telekom financials and annual change – 2005 - 2006
Table 26 – Deutsche Telekom financials and annual change – H1 2007
Table 27 – Deutsche Telekom mobile, fixed, broadband subscribers (Germany) adds/losses – Q1 2007
Table 28 – Arcor financial statistics and annual change – 2005 - 2006
Table 29 – Arcor subscribers – 2006
Table 30 – mobilcom - freenet fixed network subscribers – 2005 - 2006
Table 31 – mobilcom - freenet financial statistics – 2005 - 2006
Table 32 – debitel revenue, EBITDA and subscribers – 2004 - 2005
Table 33 – Fixed lines in service and teledensity – 2000 - 2006
Table 34 – New entrant broadband market share, by type – October 2006
Table 35 – Internet users and penetration – 1991 - 2007
Table 36 – Broadband subscribers by access type and market penetration – 2001 - 2007
Table 37 – Broadband subscribers by access type – October 2006
Table 38 – Broadband subscribers as share of Internet users – 2002 - 2007
Table 39 – Narrowband Internet traffic – 1999 - 2006
Table 40 – Broadband Internet traffic – 2001 - 2006
Table 41 – Cable operator subscribers by sector – 2005 - 2006
Table 42 – Cable subscribers – 2000 - 2007
Table 43 – Unitymedia fixed, broadband subscribers – 2006
Table 44 – Unitymedia financial statistics and annual change – 2005 - 2006
Table 45 – DSL household penetration – 2005 - 2007
Table 46 – DSL traffic in gigabytes – 2001 - 2006
Table 47 – Deutsche Telekom broadband subscribers and annual change – 2006 - 2007
Table 48 – Deutsche Telekom narrowband subscribers and annual change - 2006 - 2007
Table 49 – DSL market share by operator – 2006 - 2007
Table 50 – Arcor broadband subscriber statistics – 2006 - 2007
Table 51 – Arcor fixed-line, broadband financials and annual change – (year to March) 2007
Table 52 – Forecast broadband subscriber growth – stronger market growth scenario - 2007 - 2011; 2017
Table 53 – Forecast broadband subscriber growth – weaker market growth scenario - 2007 - 2011; 2017
Table 54 – TV households and penetration - 2006
Table 55 – Digital terrestrial TV penetration - 2002 - 2007
Table 56 – Premiere EBITDA, net profit, revenue and OPEX - 2006 - 2007
Table 57 – Premiere subscribers - 2006 - 2007
Table 58 – Premiere annualised ARPU - 2006 - 2007
Table 59 – Arcor fixed-line, broadband financials (year to March) and annual change – 2007
Table 60 – Arcor broadband subscriber statistics – 2006 - 2007
Table 61 – Tele Columbus broadband and digital TV subscribers – 2005 - 2006
Table 62 – Tele Columbus ARPU – 2005 - 2006
Table 63 – Cable TV subscribers and penetration – 1991 – 2007
Table 64 – Kabel Deutschland: TV, Internet and telephony subscribers and annual change – 2005 - 2006
Table 65 – Kabel Deutschland: TV, Internet and telephony ARPU – 2005 - 2007
Table 66 – Kabel Deutschland cable TV subscribers – March 2007
Table 67 – Kabel Deutschland financial statistics – 2006 - 2007
Table 68 – Digital terrestrial TV penetration - 2001 - 2007
Table 69 – Digital multichannel households (Germany, Austria) - 2004 - 2008
Table 70 – ish/iesy broadband and digital TV subscribers – 2005 - 2006
Table 71 – ish/iesy ARPU (€ / month) – 2005 - 2006
Table 72 – Unitymedia subscriber statistics and annual change – Q2 2007
Table 73 – Unitymedia ARPU and annual change – Q2 2007
Table 74 – Satellite pay TV subscribers and penetration – 1993 - 2007
Table 75 – Mobile service revenue and annual change – 2005 - 2006
Table 76 – Mobile service revenue by operator – 2006
Table 77 – Mobile traffic – 1999 - 2006
Table 78 – Mobile operators, technology, subscribers and annual growth – June 2007
Table 79 – Mobile subscribers and penetration – 1995 - 2007
Table 80 – Mobile market share by operator – 2003 - 2007
Table 81 – Share of new subscribers by operator – 2006 - 2007
Table 82 – Mobile numbers ported – 2002 - 2006
Table 83 – Mobile termination tariffs – 2006 - 2007
Table 84 – T-Mobile subscribers, revenue, EBITDA and ARPU – 2005 - 2007
Table 85 – T-Mobile subscribers in selected European countries – 2001 - 2007
Table 86 – Vodafone Germany mobile subscriber statistics – 2002 - 2007
Table 87 – Vodafone Germany financial statistics by sector – 2003 - 2007
Table 88 – Vodafone voice and data usage – 2005 - 2007
Table 89 – Vodafone 3G subscribers – 2005 - 2007
Table 90 – E-Plus mobile statistics: subscribers, ARPU and market penetration – 2004 – 2007
Table 91 – E-Plus net adds: prepaid / contract – 2005 – 2007
Table 92 – O2 prepaid and postpaid subscribes – 2005 - 2007
Table 93 – O2 ARPU – prepaid, contract, blended and data – 2006 – 2007
Table 94 – O2 revenue – 2006 - 2007
Table 95 – Mobilcom subscriber statistics, ARPU – 2005 - 2006
Table 96 – Prepaid customer share of all subscribers – 2000 - 2006
Table 97 – E-Plus prepaid customers – 2006 -2007
Table 98 – Vodafone proportion prepaid subscribers – 2006 - 2007
Table 99 – UMTS subscribers as proportion of total – 2006 - 2007
Table 100 – UMTS subscribers and annual growth, by operator – 2006 - 2007
Table 101 – Mobile data sent – 2005 - 2006
Table 102 – Annual SMS traffic and annual change – 2004 - 2006
Table 103 – Annual SMS traffic – 1998 - 2007
Table 104 – Subscriber monthly consumption of applications – June 2006
Table 105 – O2 SMS sent – 2006 - 2007
Table 106 – Annual MMS traffic – 2002 - 2006
Table 107 – E-Plus i-mode subscribers (historic) – 2002 - 2005
Table 108 – Vodafone i-mode subscribers – 2005 - 2006
Table 109 – Vodafone live! customers - 2002 - 2007
Table 110 – Country statistics Austria – 2007
Table 111 – Telecom revenue and investment statistics – 2005
Table 112 – Telephone network statistics – October 2006
Table 113 – Internet user statistics – June 2007
Table 114 – Broadband statistics – March 2007
Table 115 – Mobile statistics – June 2007
Table 116 – National telecommunications authorities
Table 117 – Retail telecoms revenue by sector and annual change – 2003 - 2005
Table 118 – Retail telecoms share of sales by sector – 2003 - 2005
Table 119 – Fixed-line termination revenue – 2004 - 2007
Table 120 – LLU, shared access price - connection, monthly rental – 2004 - 2006
Table 121 – Unbundled loops and access lines – 2004 - 2007
Table 122 – Numbers ported – 2004 - 2006
Table 123 – Telekom Austria traffic market share – 2004 - 2006
Table 124 – Telekom Austria financial statistics – 2001 - 2006
Table 125 – Telekom Austria: ISDN and ADSL access lines – 2004 - 2007
Table 126 – Telekom Austria access lines – annual change – 2006 - 2007
Table 127 – Telekom Austria traffic statistics and annual change – 2004 - 2006
Table 128 – Telekom Austria wireline financial statistics and annual change – 2004 - 2006
Table 129 – Telekom Austria financial statistics and annual change – 2006
Table 130 – UPC Austria revenue and annual change – 2005 - 2006
Table 131 – UPC Austria subscribers and operating statistics – 2005 - 2007
Table 132 – Fixed lines in service and teledensity – 1995 – 2005*
Table 133 – Bitstream access lines – 2005 - 2006
Table 134 – Unbundled loops and access lines – 2004 - 2007
Table 135 – Telekom Austria wholesale and retail broadband subscribers – 2004 - 2007
Table 136 – Leased line revenue by segment – 2005*
Table 137 – Internet user growth and penetration – 1995 - 2007
Table 138 – Total broadband subscribers by access type – 2002 - 2007
Table 139 – Retail broadband connections by infrastructure – 2004 - 2007
Table 140 – Wholesale broadband connections by infrastructure – 2004 - 2007
Table 141 – Revenue from retail and wholesale broadband connections (€) – 2004 - 2007
Table 142 – Wholesale broadband connections – 2004 - 2006
Table 143 – Telekom Austria market share of broadband lines – 2004 - 2006
Table 144 – Telekabel broadband subscribers – 2005 - 2007
Table 145 – UPC Austria broadband revenue – 2006 - 2007
Table 146 – Telekom Austria ADSL subscribers – 2004 - 2007
Table 147 – ADSL subscriber numbers and annual change – 2000 - 2007
Table 148 – Telekom Austria Internet subscribers and annual change – 2000 - 2006
Table 149 – Telekom Austria broadband subscribers – 2004 - 2007
Table 150 – Forecast broadband subscriber growth – stronger market growth scenario – 2007 - 2011; 2017
Table 151 – Forecast broadband subscriber growth – weaker market growth scenario – 2007 - 2011; 2017
Table 152 – Online advertising expenditure – 2001 - 2005
Table 153 – Digital penetration by reception type – 2005
Table 154 – Location-independent and converged numbers – 2005 - 2006
Table 155 – Cable and satellite TV penetration – 1992; 1994; 1999; 2002; 2005
Table 156 – Cable and satellite TV households – 1997; 2000 - 2005
Table 157 – Household TV reception by technology – 2005
Table 158 – UPC Austria subscribers and operating statistics – 2005 - 2007
Table 159 – UPC Austria revenue – 2005 - 2007
Table 160 – Revenue breakdown by sector – 2005
Table 161 – Mobile operators, technology, subscribers and annual change – June 2007
Table 162 – Mobile subscribers and penetration (regulator data) – 1995 - 2007
Table 163 – Mobile SIMs in use, 2G and 3G – 2004 - 2007
Table 164 – Mobile revenue and call minutes – 2004 - 2007
Table 165 – Mobile market share by operator – 2005 - 2007
Table 166 – Share of new subscribers by operator – 2005 - 2007
Table 167 – Roaming destinations by call volume – 2005
Table 168 – Ported mobile numbers – 2004 - 2007
Table 169 – Mobile termination charges by operator – 2005 - 2006
Table 170 – mobilkom austria group subscriber; Europe and Austria – 2000 - 2007
Table 171 – mobilkom austria group subscriber breakdown – 2005 - 2007
Table 172 – mobilkom austria wireless financial statistics and annual change – 2004 - 2006
Table 173 – mobilkom austria monthly ARPU – 2004 – 2007
Table 174 – tele.ring subscribers, revenue, market share (historic) – 2005
Table 175 – T-Mobile Austria revenue – 2003 - 2006
Table 176 – T-Mobile Austria ARPU – 2005 - 2007
Table 177 – T-Mobile Austria subscribers – 2004 - 2007
Table 178 – Mobile numbers in use, contract and prepaid – 2004 - 2006
Table 179 – mobilkom austria subscribers, contract, prepaid, and market share – 2005 - 2007
Table 180 – Data services revenue as % of total - 1999 - 2005
Table 181 – SMS messages sent – 2004 - 2007
Table 182 – mobilkom austria SMS sent – 2004 - 2007
Table 183 – mobilkom austria: data as proportion of revenue – 2004 - 2007

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