Telecommunication Infrastructure

Germany has one of the world's most technologically advanced telecommunications systems. With a share of 28%, Germany is the single largest Telecommunication market in Europe and is fully liberalized since January 1, 1998. As a result of intensive capital expenditures since reunification, the formerly backward system of the eastern part of the country is being rapidly updated to the most advanced technology. Germany is served by an digitized switching system connected by modern networks of fiber-optic cable, coaxial cable, microwave radio relay, and a domestic satellite system. The fiber-optic cables build up the most dense network in the world. Cellular telephone service is widely available and includes roaming service to many foreign countries.

Deutsche Telekom AG is Europe’s largest telecommunications company and the third largest carrier worldwide. It provides universal services including the online service "T-online" and a TV cable network. The number of telephone lines grew to over 44 million (including 7.3 million ISDN B channels). The basis for the high developed and widespread infrastructure in Germany is the network of the Deutsche Telekom. By December 31, 1997, the following infrastructure was provided:

Figures on Telephony (mil.) 1997 1996 1995
Telephone lines 45.2 44.2 42.0
- standard analog 37.8 39.0 39.2
- ISDN channels 7.3 5.2 2.7
- coin telephones - 72.5 82.6
- card telephones - 91.6 82.4
National telephone calls 52,700 50,700 52,300
International telephone calls 1,498 1,420 1,450
Copper (long distance network, '000 km) 1449.5 1419.1 1410.8
Fibre (long distance network, '000 km 149.2 137.6 124.6
Cable accesses TV 17.3 16.7 15.8

(Resource: Deutsche Telekom)

The Regulatory Authority for Telecommunications and Posts (Reg TP) has granted 225 Licenses which serve as the basis for efficient allocation of telecommunication services. (3)

Licenses Class 1 - Mobile Communication
Type of License Number of Licenses Frequencies
digital cellular telephony 2 GSM, 2 DCS 1800 890-960 MHz (D1,D2); 1710-1880 MHz (E1, E2)
analog cellular telephony 1 C-net  
trunked radio network 6 Type A (metropolitan areas) 410 - 430 MHz
  15 Type B (rural areas)  
mobile data communication services 2 416.6375 - 417.3625 MHz
terristical paging (400 MHz) 3 + 2 465.970, 466.075, 466.230 MHz (T-Mobil), 448.475 MHz (Miniruf), 448.425 (DFR)
ERMS           3 nationwide        10 regional 169.4 - 169.8 MHz

 

Licenses Class 2 - Satellite Transmission Networks
The Reg TP has granted 55 Licenses to operate Satellite Transmission Networks. This does not include voice telephony, transmission networks for mobile communication other than satellite and wire transmission networks.  Space segments or satellite capacity are also not included. Out of the 58 Licenses, 11 are obtained by Radio or Television Companies and 22 of all proprietors are based outside Germany. Furthermore, 3 S-PCS Licenses for transmission networks of satellite based personal communication systems have been granted to ELSACOM S.p.A. (Rome, Italy), Iridium Communications Germany GmbH (Duesseldorf, Germany) and OHB - Orbital- und Hydrotechnologie GmbH (Bremen, Germany).
 
This License covers the right to operate transmission networks that reach beyond property barriers and are used for public telecommunication services. Dated April 24, 1998, 73 Licenses have been granted by the Reg TP.   7 of them are valid for the entire area of the Federal Republic of Germany. All others are granted for specified regions only.  
Licenses Class 3 - Wire Transmission Networks

 

Licenses Class 4 - Voice Telephony
On May 6, 1998, 63 licenses  were given by the Reg TPto provide voice telephony services based on self operated networks. This license does not include the right to operate wire transmission networks. The voice telephony service was the last to be liberalized and therefore completed the liberalization process on January 1, 1998. Of all 63 only 15 Licenses grant the right to provide nationwide services.
 

Since the liberalization of the telecommunications industry has been completed just recently, the future degree of competition can not be determined yet. Deutsche Telekom, the former PTT, faces competition from many smaller local and also international telecommunication companies. Even outside metropolitan areas such as Hamburg, Cologne, Frankfurt / Main and Munich, networks from Deutsche Telekom are complemented by high-speed networks - or city networks - that are offered by telecommunications companies - often founded by local utility companies - and enable a data exchange between the companies linked to it and with the Internet. Several hundred data bases offer customers from industry and institutions information upon request for a fee. However, three companies that have been successful in the mobile area, but which still earn the lion's share of their profits in the energy or steel areas, are expected to be DT's main competitors:

Mannesmann ARCOR AG&Co.
Mannesmann ARCOR AG & Co., owned by Deutsche Bahn AG (50,2) and a consortium under the leadership of the Mannesmann AG (49,8%), gained experience in the telecommunications sector as operator of the D2-network. (Consortium: Mannesmann AG (55,5 %), AT&T (15 %), Unisource (15 %), AirTouch (4,5 %)). Its nationwide 40,000 km digital voice and data network consist off 7,000 km optical-fiber cable, a high speed backbone network (2.5 Gbit/s), 2,500 km Richtfunk-Strecken.
 
 O.tel.o
o.tel.o, the cooperation between VEBA AG and RWE AG, the country's largest energy providers, is considered to be the other main competitor. O.tel.o operates a 11,000 km fiberoptical network based on SDH-technology (synchronous digital hierarchy) with transmission capacities up to 2.5 Gbit/s. It also holds 60.25% of the third largest cellular phone company e-plus. Since one major obstacle for the new competitors is to overcome the last golden mile to connect the enduser, O.tel.o tests wireless local loop (WLL) technology based on the DECT (Digital Enhanced Cordless Telecommunications) standard. Currently the 6 qkm testing area in the city of Gelsenkirchen serves 500 users through 96 basis stations. The operation of DECT based telecommunication is regulated through licenses by the Reg TP due to the narrow frequency range. Therefore, DECT is only a limited solution to overcome the last mile.

  

Mobile Telecommunication

Mobile communications is one of the fastest growing areas in the German economy. Since its liberalization in 1989, the sector has experienced two-digit annual growth rates for hardware as well as for air-time, and experts agree that this positive trend will continue for at least five years. Since the mobile communications market was opened to competition, 8.5% of the German population has been connected to the mobile networks, D1, C-Net (T-Mobil), D2 (Mannesmann Mobilfunk), and E1(e-plus). The fourth license for a digital network in the 1,800 MHz band (E2) awarded on May 15, 1997 to VIAG Interkom, a consortium consisting of VIAG, a Munich-based energy giant, Telenor from Norway, and British Telecom, should further accelerate expansion of the mobile telecommunications market. Worldwide, Germany ranks number four as far as mobile communications equipment sales are concerned; in 1996, only in the United States, Japan and the UK was more equipment sold than in Germany. Experts anticipate that by the year 2000, the number of mobile communications users in Germany will reach nine to thirteen million, equaling a penetration of between ten and fifteen percent.

Market penetration, however, is still modest with 9.6 hand-held cellular telephones per 100 citizens in 1997. Unlike other European countries, where it is very much a fashion fad to carry and use a mobile phone, the public use of mobile telephones in Germany is not considered "trendy," nor are the users considered "important." In Germany, reasons for the use of mobile telecommunications equipment are mostly pragmatic.

 

Mobile Data Communication

Presently, there is only one mobile data communications service available in Germany. It is called Modacom and is operated by T-Mobil with 24,000 customers in 1997. 

Paging

Compared with other industrialized countries, paging appears not to be very popular in Germany, although some of the providers offer features that allow paging in France and Switzerland (Eurosignal) or the UK (Cityruf). Offered services differ in their scope: "Eurosignal" is the "classic" paging signal-tone, "Cityruf" offers signal and text, "Scall" can transmit numbers and limited text, and "Skyper" offers text and information transmission. The number of paging-users is estimated at 1.2 million, with 300,000 expected additional new users per year. 

Satellite telephony

Satellite telephony is not yet widely used in Germany. Experts believe that this is due mainly to expensive air time and hardware and the fact that terminals are considered to be too heavy and not user-friendly. In order to enhance the acceptance of satellite telephony, the involved companies are planning to launch two new series of satellites, both in low and middle earth orbit ("Leos" and "Meos"). They intend to significantly lower the price for air-time, and modify terminals to make them more user-friendly. Experts believe that Germany counted approximately 12,000 users of satellite telephony. Presently, the major Satellite Network Provider is Inmarsat (T-Mobil). Other companies that have plans to offer satellite transponder space are Iridium, Globalstar, ICO, and Odyssey.

Satellite earth stations
14 Intelsat (12 Atlantic Ocean and 2 Indian Ocean)
1 Eutelsat
1 Inmarsat (Atlantic Ocean region)
2 Intersputnik (1 Atlantic Ocean region and 1 Indian Ocean region)

 

Additional facts on information technology infrastructure

  246 Television broadcast stations
  Two nationwide public TV stations (ARD including 11 local stations, ZDF),
  12 private stations + one digital TV station (DF1)
  7 million satellite recievers in 1995
  44.8 million TV-sets
  150 million Radio-sets

Germany’s share of western Europe’s television business is 20.5%, and expected to grow to over 25% in the next decade. After much discussion, major German satellite broadcasters Kirch, Bertelsmann, Deutsche Telekom, the two government broadcasters and French pay-TV company Canal Plus have agreed on a single standard for digital television. Finally, the Krich Group and Bertelsmann also agreed upon a single format for home digital decoders.

Radio stations

The allocation of radio licenses is regulated by state law. Therefore, there are no nationwide radio networks. In general either one or two statewide or a number of local radio stations are allowed. (5)

State / City-state public broadcast authority / station statewide commercial local public or non-commercial local commercial nationwide or satellite
Schleswig Holstein

NDR

4

2

(1)

Lower Saxony

NDR

2

9

1

Mecklenburg-Vorpommern

NDR

3

1

Brandenburg

ORB

1

North-Rhine-Westphalia

WDR

10

45

2

Thuringia

MDR

2

1

Saxony-Anhalt

MDR

2

Saxony

MDR

6

9

Hesse

HR

4

7

Saarland

2

Rhineland-Palatinate

SWDR

5

1

Baden-Wuerttemberg

SWDR

3

8

15

Bavaria

BR

2

app. 50

Berlin

(ORB)

10

1

Hamburg

NDR

1

6

Bremen

NDR

2

2

Foreign stations

5

 

Private Networks (example)

The German Research Network   
         Forsch.gif (14557 bytes)   Deutsches Forschungsnetz - German Research Network (DFN):
Established in 1984 as a self-help association for research and science, the Association for the Promotion of a German Research Network Reg. Assoc. - DFN-Verein - ensures to the operation and further development of the infrastructure Deutsches Forschungsnetz.  Some 400 member facilities - institutions of higher education, public and private research, research-oriented companies, culture, education, public authorities - are currently using the Deutsches Forschungsnetz as members of the DFN-Verein.  The DFN-Verein ensures to demand-oriented further development of the infrastructure.   Innovative application projects are initiated within the scope of the development program.
         
Sources (4)

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