The telecommunications market analysis makes it clear that Germany is catching up in fiber optic expansion and has thus moved into third place in Europe in terms of the addition of new connections.
Highest investments since liberalization
The sums raised by investors and expanding companies are record-breaking. Since the liberalization of the telecommunications market 25 years ago, for the first time ever, more money than ever has been invested in fiber optic expansion. With 38.1 million Gigabit connections available, three quarters of German households will have a gigabit-capable network available by the end of the year. It is positive that fiber optic expansion is being pushed forward more and more, especially in rural areas.
Total market for telecommunications services
Basically, the telecommunications companies were able to increase sales from telecommunications services by a nominal 1.3 percent. The mobile phone business is growing somewhat faster than the fixed network sector. During the Corona pandemic, the landline network in particular was in greater demand. This was shown by the TK market analysis last year. Service numbers in particular, for example from offices and public institutions, showed an increase in the previous year and have now shrunk significantly again. Voice minutes in the landline area are also falling slightly, while calls in the mobile area are increasing again. Nevertheless, all provider groups were able to slightly increase sales in their submarket.
The gigabit-capable network is growing
By the end of 2022, 17 percent of Germans will demand reception speeds of at least 1 Gbit/s. But despite the availability of a gigabit-capable connection, almost half of the 12.6 million customers only book download speeds of a maximum of 250 Mbit/s. At the moment, the lower data rates are sufficient for most private households. Nevertheless, it can be noted that, according to the TK market analysis, the volume of data transported via fixed networks continues to rise. With almost 275 gigabytes per broadband connection, this represents an increase of 20.8%. And overall, the trend towards connections with higher speeds is clearly continuing.
The mobile phone market is growing
Germans are making more phone calls than before and are using the internet more and more often. Four out of five mobile phone customers will be using their mobile devices in the 5G or LTE network by the end of 2022. As the 5G expansion progresses, the number of 5G cards used has increased by more than a third. By the end of the year, around 170 million SIM cards will be active. Just over a third of this comes from the networking of machines.
Private expansion before subsidized expansion
“Germany is finally becoming a fiber optic country […] and is being noticed by investors,” explained VATM President David Zimmer during the press conference on October 26th, 2022. The TK market analysis makes it clear that 90% of the expansion projects are self-financing. The federal government's funding stop is welcomed by the VATM and does not prevent overall expansion. Because more funding doesn't solve the problem; it actually slows down expansion because bureaucracy stands in the way.
David Zimmer further explained: “Competition is the driver of expansion,” the capital is there, but the limited construction capacity is an obstacle. He appeals to the government and emphasizes how important energy security is in the current situation, because “digital infrastructures are the lifelines of our society”. For example, hospitals and public institutions cannot work without electricity and telecommunications.
DIALOG CONSULT and VATM publish telecommunications market analysis every year
For the 24th time, the member companies in the Association of Telecommunications and Value-Added Services Providers e. V. (VATM for short) was interviewed. This includes, among other things, the expansion of fiber optic networks, the distribution of customers in the telecommunications market and exact connection numbers. The survey takes place annually in the third quarter. Further information on the telecommunications market analysis can be found on the website of the VATM.