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Strategy Analytics: Germany Not Immune to Broadband Slowdown and
Credit Crunch
(Wireless News Via Acquire Media NewsEdge)
While most major European markets appeared to have weathered the Q2'08
broadband slowdown and global credit crunch, Germany was not immune,
according to a report just released by Strategy Analytics' Multiplay
Market Dynamics service.
Although not nearly as dramatic as the second quarter downturn in the
US market, the drop does suggest an overall softening of the market,
according to officials.
The report, "Germany Not Immune to Q2'08 Slowdown," notes that German
broadband service providers (BSPs) added only 678,000 new subscribers
in the second quarter of 2008, compared to 1.1 million in the same
quarter of 2007.
According to Strategy Analytics, incumbent Deutsche Telekom saw a
quarter-over-quarter decline of 100,000 in net additional
subscriptions, however the company remains the clear market leader,
with 9.9 million residential subscribers at the end of Q2'08.
Vodafone-owned Arcor and United Internet likewise saw flat or declining
quarter-over-quarter net additions.
While the German broadband market is expected to grow 10 percent in
2008, Strategy Analytics believes that consolidation is inevitable.
"Germany is Europe's largest broadband market, and also its most
fragmented, with seven companies sharing 92 percent of the total
subscribers," noted Ben Piper, Director of the Strategy Analytics
Multiplay Market Dynamics Service. "We do not see the market supporting
such a crowded playing field, and anticipate a steady increase in
merger and acquisition activity in the upcoming 12 months."
"Alice and Freenet are the most likely takeover candidates in the
short-term," added David Mercer, Vice-President of the Strategy
Analytics Digital Consumer Practice.
Strategy Analytics focuses on market opportunities and disruptive
forces in the areas of Automotive Electronics and Entertainment,
Broadband Connected Home, Mobile & Wireless Intelligent Systems
Implementation Strategies and High Frequency Market intelligence.
((Comments on this story may be sent to newsdesk@closeupmedia.com))
((Distributed on behalf of 10Meters via M2 Communications Ltd -
http://www.m2.com))
((10Meters - http://www.10meters.com))
Copyright ? 2008 Wireless News
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