German Broadband Market

Germany Broadband Consolidation

by John McCann on November 10, 2009

In case you hadn’t read it here or here, Telefonica just snapped up the  Telecom Italia German operations under the name of HanseNet;  The latest in a long line of mergers and acquisitions in the German Fixed Broadband Market.  Earlier this year United Internet AG purchased the DSL assets of FreeNet and the Tiscali/Ecotel/Nacamar saga seems to be over.

Mergers and acquisitions aren’t a surprise considering that the overall market is in turmoil and many of the Carriers in Europe are looking to re-align their business around their core competencies.  All of this activity has left the German Market with 4 real Consumer Broadband Providers:

    1. Deutsche Telekom with 11.2 + Million subscribers
    2. United Internet with 3.5+ Million subscribers
    3. Vodafone (Arcor) with 3.3+ Million subscribers
    4. Telefonica (HanseNet) with 2.5+ Million subscribers

Over the recent years, due to a plethora of Service Providers, the German consumer broadband market competition is extremely fierce.  Promotions are driving subscriber uptake but in a mature market a good chunk of those subscribers are coming from other providers.  There is quite a bit of churn and I’m sure the top carriers in Germany are hoping that this consolidation can help stabilize the market a bit.

The most recent financial news from Vodafone, Deutsche Telekom and QSC shows promise with all of them reporting positive numbers.  Hopefully the others will soon follow suit.

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