2017 Germany - Telecoms, Mobile and Broadband - Statistics and Analyses

Germany’s mobile network operators commit to 5G by 2020

Germany has one of Europe’s largest telecom markets, with penetration in the broadband and mobile sectors about average for the region. Both the fixed network and broadband markets are dominated by Telekom Deutschland, though other notable players include freenet, Vodafone and Telefónica.

The mobile market is also the largest in Europe. In common with most developed markets, the main driver for growth is in mobile data, with the number of mobile broadband subscribers having increased rapidly in recent years on the back of universally available 3G infrastructure and an extensive reach of LTE networks. Operators have invested in MIMO and carrier aggregation technologies to provide improved data rates on their networks. Looking forward, there is also increasing activity in 5G, with Telekom intending to provide 5G across its networks from 2020, and Telefónica Germany also active in deploying a 5G-antenna solution.

Although the mobile market is dominated by the three MNOs Telefónica Germany, Telekom and Vodafone Germany, there is effective competition from a large number of resellers and MVNOs. This has placed pressure on voice and data tariffs, resulting in lower ARPU. Regulatory pressure on roaming charges and mobile termination rates have also eroded operator revenue, and encouraged them to step-up their development of data applications to improve profits.

Germany’s broadband market has been among the more progressive in the pursuit of FttP and G.fast deployments. The dominant DSL platform is led by Telekom Deutschland, which continues to invest in network upgrades with a focus on fibre and vectoring VDSL. This strategy is aimed at competing with cablcos which are themselves investing in DOCSIS3.1 technology, as also at reaching broadband targets by 2020 and the more ambitious aim of creating a gigabit Germany by 2025.

This report examines key aspects of the German telecom market, providing data on the major operators, the fixed network infrastructure and regulatory developments including the status of interconnection, local loop unbundling, number portability, and carrier preselection. The report also assesses the mobile voice and data segments, including an overview of the main operators and their strategies for dealing with competition and emerging technologies in coming years. In addition the report covers the fixed and wireless broadband markets, including subscriber forecasts and an analysis of developments in technologies such as FttP, powerline broadband and wireless broadband.

Key developments:

• Regulator decides on future bitstream access requirements;
• EC calls on the regulator to reduce fixed termination rates;
• Telekom Deutschland launches NB-IoT network;
• Vodafone Germany increases LTE speeds to 500Mb/s;
• Deutsche Telekom commits to 5G across its network footprint;
• Vodafone Germany offering a 1Gb/s FttP service;
• NetCologne invests €100 million in G.fast and FttP;
• Tele Columbus begins rebrand as PYUR;
• Telekom launches 1Gb/s FttP service;
• EWE to invest more than €1 billion in fibre-based infrastructure to 2026;
• Industry pressure to develop a gigabit society by 2025;
• Unitymedia to launch 1Gb/s service based on the DOCSIS3.1 standard in early 2018;
• Report update includes the regulator’s market data for 2016, VATM’s market data for 2017, telcos’ operating and financial data to Q3 2017, recent market developments.

Companies mentioned in this report:

Telekom Deutschland, freenet, BT Global Services, Tele2 Germany, Telefónica Germany, Vodafone Germany, E-Plus, CallMobile, United Internet, Tiscali, QSC, Kabel BW, Kabel Deutschland, Unitymedia, PrimaCom, The Cloud, Energie Baden-Wurttemberg.