Non-residential markets in Germany © Photo Credit: lassedesignen - stock.adobe.com

Non-residential markets in Germany

On behalf of the VATM, WIK investigated which requirements of a portfolio of wholesale services must meet in order to strengthen and secure competition in the business segment of communication markets.

On behalf of VATM, WIK examined the economic relevance and requirements of the business customer segment in Germany. Against the backdrop of the digitization of the economy and the migration to All-IP and fiber networks. The digitization of the economy is bringing about a fundamental change in business models as a result of the use of information and communication technologies (ICT) in internal core processes within the company, as well as in supplier and customer relationships. In a networked world, telecommunications companies with their basic infrastructure enable and support the transition of their business customers into the digital economy with innovative products and services.

A high competition level in the information and communications technology markets benefits business customers, enables tailor-made solutions, stimulates their demand and improves their digitization capabilities. However, the competitive situation in the business customer market is currently characterized by a strong market position of Telekom Deutschland GmbH (TDG). Only TDG has a ubiquitous infrastructure and alternative competitors can only rely on self-built infrastructure to a limited extent. Strengthening competition is an industrial policy responsibility to ensure that the competitiveness of the German economy is maintained and further strengthened.

Against the backdrop of the economic importance of the business customer market, it is therefore necessary that suppliers of business customer products - in addition to self-built infrastructure - also have a broad and innovative portfolio of wholesale services at their disposal. This is the prerequisite for offering complex and high-quality business customer products with demanding connectivity requirements (symmetry, real-time, high reliability) in a competitive environment.

The WIK study identifies which requirements a wholesale portfolio for business customers must meet and which regulatory challenges should be tackled in order to strengthen and secure competition in the business customer segment.

The study in German language is available for download.