Price differentiation for fixed-line broadband products in Germany (2023) © Photo Credit: domoskanonos - stock.adobe.com

Price differentiation for fixed-line broadband products in Germany (2023)

WIK analyzes the cable, FTTB/H and xDSL-based double-play offers of 105 fixed network providers in Germany for the third time

The study examines how prices in Germany have developed in view of the dynamic FTTB/H roll-out, a continuing limited infrastructure competition between gigabit-capable infrastructures, and the difficult overall economic environment.

This year's results of WIK’s tariff analysis show both parallels to previous years and new developments:

  • With the exception of prices for gigabit bandwidths via FTTB/H, the overall price trend is relatively constant. In contrast to market participants in other sectors, fixed network providers were not able to pass on the exceptionally high cost increases of the last two years (e.g. energy and labor costs) to their end customers.
  • Across all bandwidth classes considered, the average prices of cable providers are still lower than those of xDSL and FTTB/H providers.
  • The proportion of providers marketing gigabit bandwidths has continued to rise. This applies to FTTB/H and cable providers.
  • The highest price mark-ups for the switch to the next higher bandwidth class continue to be charged for the switch from BBK 5 (400 - 999 Mbit/s) to gigabit bandwidths. This applies to both cable-based and FTTB/H-based tariffs. Even though these mark-ups have decreased significantly for FTTB/H tariffs compared to the two previous years, FTTB/H prices for gigabit bandwidths remain at a high level compared to other broadband products.
  • The price gap between cable- and FTTB/H-based tariffs has declined in all bandwidth classes considered, with the greatest reduction in the case of gigabit tariffs.

This report is an update of the corresponding studies from the two previous years. These can be accessed via the following links (only available in German):

WIK Kurzstudie: Preisdifferenzierung bei leitungsgebundenen Breitbandprodukten 2021

WIK Kurzstudie: Preisdifferenzierung bei leitungsgebundenen Breitbandprodukten 2022