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TMCNet:  STRATEGY ANALYTICS: Strategy Analytics: German Broadband Market 
Suffers From Q2'08 Downturn

[October 06, 2008]

STRATEGY ANALYTICS: Strategy Analytics: German Broadband Market Suffers From Q2'08 Downturn

(M2 PressWIRE Via Acquire Media NewsEdge)
RDATE:06102008

Strategy Analytics: German Broadband Market Suffers From Q2'08 Downturn

Deutsche Telekom Still on Track to Exceed 11 Million Subscribers by End
Of 2008

Munich, Germany -- 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.

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.

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% 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% 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.

Story continues below ↓
In addition to reporting and analysis on Germany's second quarter
results, this report includes Strategy Analytics' latest near-term
subscriber performance projections for selected German BSPs.

About Strategy Analytics

Strategy Analytics, Inc 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.
Headquartered in Boston, MA, with offices in the UK, France, Germany,
Japan, S. Korea and China, Strategy Analytics works with clients
through annual multi-client services, management team workshops and
custom consulting engagements. For more information, please visit
www.strategyanalytics.com

CONTACT: Steffi Karp, Strategy Analytics
Tel: +1 617 614 0722
e-mail: skarp@strategyanalytics.com
Hakan Gustafsson, Strategy Analytics
Tel: +49 89 5151 3535
e-mail: hgustafsson@strategyanalytics.com
WWW: http://www.strategyanalytics.com

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