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Telecommunications Resellers in Germany - Market Research Report (2014-2029)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: July 2024 WZ J61.90DE

Revenue

€XX.Xbn

2024

€16.5bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

XX,XXX

Businesses

X,XXX

Wages

€XX.Xbn

Telecommunications Resellers in Germany industry analysis

The internet provider sector provides both private households and commercial customers with landline and mobile phone connections as well as internet access. The players have a symbiotic relationship with the network operators, as they have to rely on their telecommunications infrastructures due to the lack of their own networks. At the same time, however, there is also strong competition between the industry players and the network operators, as both are competing for end customers with a similar range of services. This puts high price pressure on the industry. Between 2019 and 2024, revenue in the internet provider sector fell by an average of 0.2% per year. This was due to price competition with network operators, the launch of the company's own mobile network and the associated gradual exit of United Internet from the internet provider sector as well as the pandemic-related slump in sales in the sector in 2020.The expansion of the mobile network has had a positive impact on the industry in recent years. The 4G and 5G mobile communications standards have led to a sharp increase in data usage in the mobile network. Broadband expansion, in particular the expansion of the fibre optic network, enabled higher data transmission rates and also had a positive impact on the industry. In addition to technological advances, changes in customer preferences also had an impact. Although demand for landlines has remained at a high level over the last five years, the long-term trend shows that they are increasingly being replaced by mobile phones or smartphones, which can be used for a variety of purposes thanks to technological advances. As a result, the number of mobile phone connections and mobile data services continues to rise. The industry's turnover is expected to fall by 0.8% to 16.5 billion euros in 2024. The largest player in the industry, United Internet, entered the mobile market as a network operator at the end of 2023. As a result, part of the company's revenue generated in the current year is attributed to the competitor industry J61.20DE Wireless Telecommunications.In the next five years, industry turnover is expected to increase at an average annual rate of 0.6%, totalling 17 billion euros in 2029. As in previous years, this positive development is likely to be driven by technological change. For example, the 5G mobile communications standard introduced in 2019 and the broadband expansion subsidised by the federal government, particularly in rural areas of Germany, offer growth opportunities for the industry.

Trends and Insights

  • An important strategy for customer acquisition is to offer bundled products. In addition to the broadband connection, customers also receive at least one other telecommunications service such as landline telephony, television or mobile telephony. Such packages are already standard in the industry.
  • The internet provider sector generates the highest share of revenue with fixed-network connections and broadband internet. While revenue in this area is stagnating, revenue from mobile connections is increasing.
  • The centre region has the highest number of companies in the sector. This is due to the large population in the region, which means there are a correspondingly large number of potential customers.
  • The industry is characterised by strong internal competition. Fixed and mobile connections as well as data services are characterised by their homogeneity, which is why companies can hardly stand out from the competition.

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  • Market estimates from 2014-2029
  • Critical performance data and rankings
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Industry Statistics and Trends

Market size and recent performance (2014-2029)

Industry revenue has grown at a CAGR of XX.X% over the past five years, to reach an estimated €XX.Xbn in 2024.

Trends and Insights

The German telecommunications market is characterised by strong competition due to its special market structure

  • Companies in this sector offer both fixed and mobile phone connections and internet services. Their range of services therefore overlaps with that of the wireline and wireless telecommunications sectors, although they do not own the telecommunications infrastructure themselves, but merely resell network capacity that they obtain from the relevant providers to their customers.
  • Additional trends and insights available with purchase
Telecommunications Resellers in Germany
Revenue (2014-2029)
IBISWorld Logo Source: IBISWorld

Industry outlook (2024-2029)

Trends and Insights

United Internet now operates its own mobile network, which changes the competitive conditions in the industry

  • United Internet has been operating its own mobile network, which does not belong to this sector, since December 2023. This significantly changes the competitive environment on the entire mobile communications market. The company had already acquired the necessary frequencies for the 5G mobile communications standard in 2019 and has since invested heavily in expanding its network infrastructure.

Biggest companies in the Telecommunications Resellers in Germany

Company
Market Share (%)
2024
Revenue (€m)
2024
United Internet AG
4,012.0
Freenet AG
2,299.4
Deutsche Telekom AG
1,708.9

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Telecommunications Resellers in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Landlines and broadband internet, Mobile phone connections and Mobile data services. Landlines and broadband internet is the largest segment of the Telecommunications Resellers in Germany.

Trends and Insights

The industry's sales of fixed-network connections and broadband internet have stagnated over the last five years

  • The fixed-line and broadband internet segments account for the largest share of industry revenue.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector offer private households, companies and public institutions landline and mobile phone connections purchased from network operators as well as access to the internet. Its range of services also includes the resale of network capacity and the provision of specialised telecommunications solutions such as virtual private networks (VPNs). This sector does not include operators of telecommunications networks.

What's included in this industry?

Sale of mobile servicesSale of fixed network servicesSale of data services

Companies

United Internet AGFreenet AGDeutsche Telekom AG

Purchase this report to view all 6 major companies in this industry.

Related Terms

BIT CURRENT ACCESSFIBRE TO THE BUILDING (FTTB)FIBRE TO THE HOME (FTTH)INTERNET PROTOCOL TELEVISION (IPTV)IPV6 (INTERNET PROTOCOL VERSION 6)MOBILE VIRTUAL NETWORK OPERATOR (MVNO)NETWORK VIRTUALISATIONOVER THE TOP (OTT)VECTORINGVERY HIGH SPEED DIGITAL SUBSCRIBER LINE (VDSL)

Industry Code

WZ 2008

WZ 61.90 - Telecommunications Resellers in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

An important strategy for customer acquisition is to offer bundled products. In addition to the broadband connection, customers also receive at least one other telecommunicat...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2014-2023) and forecast (2024-2029)
  • Employees, including historical (2014-2023) and forecast (2024-2029)
  • Businesses, including historical (2014-2023) and forecast (2024-2029)
  • Profit, including historical (2014-2024)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

The internet provider sector generates the highest share of revenue with fixed-network connections and broadband internet. While revenue in this area is stagnating, revenue f...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2024
  • Product innovation level

Charts

  • Products & services segmentation in 2024
  • Major market segmentation in 2024

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The centre region has the highest number of companies in the sector. This is due to the large population in the region, which means there are a correspondingly large number o...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2024

Tables

  • Number and share of establishments in each region in 2024
  • Number and share of revenue each region accounts for in 2024
  • Number and share of wages each region accounts for in 2024
  • Number and share of employees in each region in 2024

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

The industry is characterised by strong internal competition. Fixed and mobile connections as well as data services are characterised by their homogeneity, which is why compa...

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2019-2024
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

United Internet AG has the highest market share in the Internet provider sector. The company offers a wide range of products and services, including web hosting, cloud applic...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2020 through 2024
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2024
  • Overview of United Internet AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Freenet AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of Deutsche Telekom AG's performance by revenue, market share and profit margin from 2018 through 2024
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for United Internet AG, and factors influencing its performance in the industry
  • Description and key data for Freenet AG, and factors influencing its performance in the industry
  • Description and key data for Deutsche Telekom AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The increasing level of digitalisation over the years is benefiting the industry. An increase in the level of digitalisation is accompanied by an increase in demand for inter...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2014-2029) 
  • Assistance historical data and forecast (2014-2029) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

The profit margin of the individual industry players can vary greatly depending on the business model. Industry players acting as internet providers achieve far higher profit...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2024
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2014-2029)
  • Revenue per Employee (2014-2029)
  • Revenue per Enterprise (2014-2029)
  • Employees per Establishment (2014-2029)
  • Employees per Enterprise (2014-2029)
  • Average Wage (2014-2029)
  • Wages/Revenue (2014-2029)
  • Establishments per Enterprise (2014-2029)
  • IVA/Revenue (2014-2029)
  • Imports/Demand (2014-2029)
  • Exports/Revenue (2014-2029)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2014-2029)
  • IVA (2014-2029)
  • Establishments (2014-2029)
  • Enterprises (2014-2029)
  • Employment (2014-2029)
  • Exports (2014-2029)
  • Imports (2014-2029)
  • Wages (2014-2029)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Telecommunications Resellers industry in Germany in 2024?

The market size of the Telecommunications Resellers industry in Germany is €XX.Xbn in 2024.

How many businesses are there in the Telecommunications Resellers in Germany industry in 2024?

There are €XX.Xbn businesses in the Telecommunications Resellers industry in Germany, which has declined at a CAGR of XX.X% between 2019 and 2024.

Has the Telecommunications Resellers industry in Germany grown or declined over the past 5 years?

The market size of the Telecommunications Resellers industry in Germany has been stable at a CAGR of XX.X% between 2019 and 2024.

What are the biggest companies in the Telecommunications Resellers market in Germany?

The biggest companies operating in the Telecommunications Resellers market in Germany are United Internet AG, Freenet AG and Deutsche Telekom AG

What does the Telecommunications Resellers in Germany include?

Sale of mobile services and Sale of fixed network services are part of the Telecommunications Resellers industry.

Which companies have the highest market share in the Telecommunications Resellers in Germany?

The company holding the most market share in Germany is United Internet AG.

How competitive is the Telecommunications Resellers industry in Germany?

The level of competition is high and steady in the Telecommunications Resellers industry in Germany.

Related Industries

Widen your competitive advantage with related industries

View all industries in Germany

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

Learn more about our methodology and data sourcing on the Help Center.