Top 5 Telecom Companies in Germany ⋆

Top 5 Telecom Companies in Germany

Germany has one of Europe’s largest telecom markets, as befits a country with a population of more than 82 million. Check more details at German Telecoms. Top 5 Telecom Companies in Germany

There are 5 major telecom operators that rule the market; Telekom Deutschland, Vodafone Germany, Telefónica Germany, 1&1 Drillisch AG , Freenet AG and others; together have more and 106+ million mobile subscribers.

Prices for mobile broadband and telephony in Germany show a different pattern compared to EU28 countries overall. Whereas consumers requiring 0.5 GB data and 100 calls with 140 SMS find offers less expensive than on the EU average, those seeking 10 GB data and no calls or SMS find prices somewhat more expensive than on the EU average.

This statistic shows the development of the yearly consumer price index (CPI) for telecommunication services in Germany from January 2015 to December 2018. The base value (100) is defined as the consumer price in 2015.

Here is a list of the top 5 telecom companies in Germany:

5. Freenet AG

Freenet AG is a German telecommunications and web content provider, that has headquarters in Büdelsdorf, Schleswig-Holstein, Germany. In the saturated German mobile communications market, the Freenet Group was able to consolidate its positioning and expanded the strategically important postpaid customer group by 2.8 per cent to 6.9 million customers by the end of December 2018. Freenet AG’s revenue without IFRS 15 effects rose by 152.0 million euros to 3,659.2 million euros during the year under review (2017: 3,507.3 million euros) driven by an increase in hardware revenue.

4. 1&1 Drillisch AG

The fourth bidder, 1&1 Drillisch, is a mobile virtual network operator (MVNO). It serves its customers by leasing capacity wholesale from Telefonica Deutschland AG, which operates the O2 brand in Germany, and Vodafone. Drillisch, run by maverick tycoon Ralph Dommermuth, is contesting to become a fourth operator in Europe’s largest economy. 1&1 Drillisch bid to 5G frequency auction is third highest, which is around EUR 1 billion. Drillisch’s move could benefit consumers but pressure the margins of the three existing players means if Drillisch wins it will increase the likelihood of German politicians passing a “national roaming” bill, which would compel all carriers to share their network with virtual operators. Company’s revenue rose in fiscal year 2018 by EURO 850.2 million (30.2%) from EURO 2.81 billion in FY 2017.

3. Telefónica Germany GmbH & Co

Telefónica Germany GmbH & Co. OHG also called Telefónica Deutschland is a provider of broadband, landline and mobile telecommunications in Germany. Telefonica’s network serves Drillisch and Freenet’s mobile subscribers. Company’s revenue was increased by 0.9 (including restructuring cost) percent in 2018. The actual revenue of company in 2018 fiscal was EUR 7.32 billion. In 2019 financial year, Telefónica Deutschland expects to continue its successful multi-brand and multi-channel strategy. The company expects a stable price development in both the premium and the non-premium segments. Telefónica’s bid is the fourth highest, which was EUR 857 million, in recent 5G frequency auction.

2. Vodafone GmbH

Vodafone GmbH is a German subsidiary of Vodafone Group plc, a company based in the UK. Vodafone Germany is headquartered in Düsseldorf, Germany. The company’s annual revenue for 2018 was EUR 10.26 billion, which is up 2.5% from 2017. Vodafone Germany is gearing for 5G implementation, under this strategy it has carried out a total of 1,300 LTE upgrades so far in 2019, connecting 400,000 people nationwide. Vodafone started to operate 600 new LTE stations, while LTE antennas were installed at 700 existing sites. Vodafone’s bid was the second highest up to EUR 939 million, in recent 5G frequency auction.

1. Deutsche Telekom AG:

Deutsche Telekom AG is Europe’s one of largest telecommunications companies, with headquarters in Bonn, Germany. The company is well on track to meet its growth target, posting an increase in net revenue of 0.9 percent to EUR 75.7 billion. As of December 31, 2018, Company has staff of some 215,675 employees throughout the world.

The company is currently participating in 5G frequency auction by the Federal Network Agency. Recently the CEO of Deutsche Telekom, Timotheus Hoettges, criticized the amount companies will have to pay to get fifth generation mobile internet spectrum in Germany as the number of total bids approached 5 billion euros ($5.6 billion). Deutsche Telekom has placed bids up to EUR 1.9 billion.