2013-09-30 04:23:51 - New Fixed Networks research report from Business Monitor International is now available from Fast Market Research
Germany is Europe's largest telecoms market, however there are diminished subscription addition opportunities for mobile and broadband operators, owing to the maturity of the market. As a result the competitive dynamic is geared towards operators selling higher value services such as fibre, LTE and converged service packages as a way of improving financial performance. This has resulted in several large mergers, as well investment in fibre and 4G-LTE infrastructure. In light of financial constraints operators are also pursuing cost efficiencies, for instance, Deutsche Telekom is implementing vectoring to increase speeds and compete with cable operators, and limiting expensive fibre deployments.
Full Report Details at
- www.fastmr.com/prod/686309_germany_telecommunications_report_q4_ ..
* Broadband growth came in below our expectations in 2012 as a result
of a net loss of DSL subscriptions, as well as slow uptake of dedicated mobile broadband subscriptions despite the widening availability of LTE services.
* Growth of 3G subscriptions for handheld devices has continued to boom, up 18.8% y-o-y to 34mn at YE12 (including 1.12mn LTE subscriptions). This trend has been driven by demand for smartphones, With Vodafone reporting 37.5% smartphone penetration on its network at the end of Q213, up from 25.6% a year earlier, while the corresponding figure for O2 reached 29% at the end of Q213.
* SMS IP substitution has taken hold in Germany, negatively affecting operator revenue. Vodafone reported a 17.8% y-o-y decline in messaging volumes to 4.35bn in Q213. Vodafone is the only operator to report messaging volume data, but BMI believes its results reflect the trend affecting all operators in the market.
Key Trends And Developments
Recent months has seen resurgence in acquisition activity in the German telecoms market. In June 2013 Vodafone offered to buy Kabel Deutschland Group (KDG) for EUR10.7bn (US$14bn). The deal was recommended by KDG's directors, suggesting that a competing informal offer from Liberty Global Inc (LGI) has already been assessed and rejected. In July 2013 Liberty Global indicated that it would not raise its bid, meaning Vodafone's bid is likely to be successful. The merger would create Germany's second largest fixed broadband provider, and generate significant cross-selling opportunities for Vodafone, the second largest mobile operator by subscriptions. If the deal is concluded BMI believes it would create a credible competitor for incumbent Deutsche Telekom across all areas of the telecoms market.
While Vodafone and Deutsche Telekom are increasingly focused on converged service opportunities they are both set to face a stronger competitor in the mobile market. In July 2013 Telefonica Deutschland agreed to acquire rival E-Plus Mobilfunk in a EUR5bn cash and shares deal that will see Germany's two smallest mobile operators combine. The deal, which has yet to receive shareholders' and regulatory agencies' approval, is expected to close in mid-2014 and will see Telefonica take a 65% stake in the business, leaving E-Plus' parent KPN with 17.6% and around 17.4% traded on the stock market. Although we expect the deal to be closely scrutinised, we do not anticipate it being rejected outright. The acquisition would enable cost efficiencies from increased scale, as well as cross-sale opportunities for Telefonica's wireline business to E-Plus' mobile subscription base.
Partial Table of Contents:
BMI Industry View
- Business Environment
- Table: Telecoms Sector - Mobile - Historical Data & Forecasts
- Table: Industry Trends - Monthly Blended Mobile ARPU (EUR)
- Fixed Line
- Table: Telecoms Sector - Fixed Line - Historical Data & Forecasts
- Table: Telecoms Sector - Internet - Historical Data & Forecasts
Industry Business Environment Overview
- Western Europe - Risk/Reward Ratings
- Table: Western Europe Risk/Reward Ratings
- Regional Perspective
- Table: Mobile Market Regional Comparisons, 2012
- Key Developments
- Market Growth
- Market Share And Net Additions
- Table: Net Additions By Operator ('000)
- Subscription Mix
- Mobile Content
- Table: Percentage Of Revenues From Non-Voice Services, %
- Mobile Operator Tables
- Table: Mobile Market
- Table: T-Mobile
- Table: Vodafone
- Table: E-Plus
- Table: O2
- Western Europe Mobile Content
- Monetising Footfall
- Interoperable M-Commerce A Stronger Proposition
- Positioning Key To M2M Success
- Fixed Line
- Table: Fixed-Line Subscriptions By Operator ('000)
- Table: Wireline Developments
- Converged Service Operator Data
- Table: Deutsche Telekom
- Table: Kabel Deutschland
- Table: UPC Unitymedia
- Table: Telef�nica O2 (HanseNet)
Industry Trends And Developments
- Key Developments
- Table: Selected Trends And Developments
- Table: Germany Regulatory Bodies And Their Responsibilities
- Regulatory Developments
- Table: Key Players - Germany Telecoms Sector
- Table: Selected Operators Financial Indicators, 2008-2012 (US$mn)
- Deutsche Telekom
- T-Mobile International
- Vodafone Germany
- Telef�nica O2 Germany
- Alcatel Lucent - Shifting Gear
- The Shift Plan In Detail
- Recent Results
- Table: Alcatel-Lucent: Revenues By Segment, Q113 (EURmn)
- European Heartland Remains Challenging
Full Table of Contents is available at:
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