Strategy Analytics: Germany will fall behind in Broadband if Merger rejected
German Broadband Penetration Is Only 11.9 Percent, While Leading European Markets Are At 30 Percent
London, England - May 11, 2004 -/The Wi-Fi Technology Forum/-- Germany risks falling further behind its European partners if it fails to approve KDG's proposed acquisition of its three rivals, and remove regulations that hinder competition in the media and communications markets. Strategy Analytics' latest report, 'German Cable At The Crossroads', finds that an enlarged Kabel Deutschland (KDG) would offer serious competition to Deutsche Telekom as a leading provider of broadband and digital services to Germany's 38 million homes, in spite of the significant investments required to upgrade the cable network.
"Germany faces a stark choice between a competitive market for advanced services and a stagnant market which serves the vested interests of the incumbent players," said David Mercer, Principal Analyst. "The fierce opposition of the leading media companies to a powerful cable industry suggests that the authorities are likely to support the status quo. In this case, Germany will continue to fall behind other European nations in broadband and digital TV adoption."
Strategy Analytics' research, which is available to subscribers to Strategy Analytics' Broadband Media and Communications service, shows that only 11.9 percent of German homes subscribed to broadband service at the end of 2003, compared to a European average of 14.5 percent, and levels of nearly 30 percent in leading countries such as Belgium. The lack of investment in cable over recent years is cited in the report as one of the major causes of Germany's slow broadband growth.
"While regulators may fear the power over media delivery and prices that a consolidated cable industry could produce, the prospect of Germany remaining a broadband laggard poses a far more significant threat to the country's economic development," notes Mercer.
About Strategy Analytics
Strategy Analytics, Inc., a global research and consulting firm, provides timely insights and strategic business solutions to companies operating at the convergence of information, communications and entertainment technologies. With worldwide headquarters in Newton, MA and principal offices in England, France and Germany, Strategy Analytics focuses on market opportunities and challenges in the areas of Automotive Electronics, Broadband, Telematics, Wireless Strategies and Enabling Technologies. For more information, see
http://www.strategyanalytics.com
European Contact:: David Mercer, +44 1908 423 610, dmercer@strategyanalytics.com
US Contact:: James Penhune, +1 617 614 0701, jpenhune@strategyanalytics.com
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