This study summarizes the development of data volumes and status quo of broadband demand in Germany. This shows a strong increase in broadband data volume over the last ten years, while the number of connections has stagnated, which is reflected in an increase in connections with higher data rates. However, even when the highest bandwidths are available, lower bandwidths are often booked.
To understand this, we first analyze individual Internet usage, estimate data requirements, and look at household equipment. There are signs of saturation in time budgets and device requirements. Additional data hunger would have to be fed by reallocation of time and by applications with higher data requirements. Drivers of the required data rates are currently high-resolution video components and the frequent transfer of large files. The drivers of broadband Internet use are age, education, employment, income and gender.
Low data rate coverage is almost complete, and high and very high data rate coverage is available in many cases. Prices for data rates are moderate to low. Only prices for gigabit connections are very high by European standards. There is much to suggest that gigabit-capable infrastructures are still fragmented in their geographical footprint and will have to compete with nationwide DSL connections only in the lower data rate range, at least until fibre optic connections become available nationwide. Price competition for access infrastructure has a geographic component. The willingness to pay for high data rates is based on the cost of current connections. Gigabit prices would have to fall significantly to be booked at the current level of demand.
