Increased value for money affecting residential broadband in Germany

Article Flag of Germany

50 MBit/s und mehr: Verbraucher wollen immer schnelleres Internet | Computer Bild.de (German language | Deutsche Sprache)

My Comments`

Recently, German households are gaining better value for money when it comes to purchasing broadband Internet service. This is affecting the higher-speed 50Mbps service packages that are being preferred by the younger people.

AVM FRITZ!Box 3490 - Press photo courtesy AVM

German Internet customers preferring better value for money for their “50Mbps Talk and Surf” service

These plans are being underscored by their availability as part of multiple-play communications-service deals which include fixed or mobile voice telephony, broadband Internet along with other services. In Germany, the service package that is commonly preferred is the “double-play” service, marketed as a “Talk & Surf” service that encompasses a fixed-line telephone service and a broadband Internet service.

The article highlighted an increase in the preferred connection speed for the broadband services over 5 years with households showing strong interest in the 50Mbps services rather than the “economy” 16Mbps services. As well, the average cost of a fixed-line telephone + broadband service in that country had been dropping slightly from EUR€35.73 per month now to EUR€28.82 per month.

It is being underscored with the increased availability of better-value 50Mbps services in Germany’s larger cities but the 16Mbps “economy” packages are being found to have reduced value for money and this price drop is being described as being a slow one. As is often noted, this kind of value for money when it comes to Internet service doesn’t extend to rural areas which tend to find themselves at a disadvantage in this field.

Personally, I would attribute the increased ubiquity of VDSL-based Internet service in Germany’s urban areas being a factor leading to the improved value for money when it comes to the higher-speed packages.

But the questions to raise regarding the German broadband market is whether there is significant infrastructure-level competition in that country? Similarly, the availability of retail-level competition for residential and small-business telecommunications services has to exist at a sustainable level to assure customers best value for money.

At least something is happening for German households where they are gaining better value for money with their Internet services.

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