The German market for internet connections via the landline network is expected to grow by 4.2% to 13.8 billion Euros, according to the German Association for Information Management, Telecommunications and New Media (BITKOM). Business with internet connections has been booming recently despite the economic crisis. Turnover generated in the business with private internet connections is expected to grow by 7.5% to 8.8 billion Euros in 2009. One reason for this growth is the fact that in private households outdated and slow internet connections are being replaced by fast connections via DSL or cable. According to BITKOM, almost 60% of all households in Germany already have broad band internet.
Over the last year prices for phone and internet services fell by 3.4% on average which benefited clients while at the same time internet connections became faster.
With regard to business clients falling prices for phone and internet services will probably lead to a slightly smaller turnover given that 95% of all businesses in Germany already have internet access. Many small enterprises change over to more cost-effective DSL connections. As a consequence, turnover generated in the business with data services for business clients is expected to fall by 1.2% to 4.9 billion Euros in 2009, according to BITKOM.
BITKOM also estimates that data traffic over the internet is growing by 50% to 60% each year. In particular data volume by private internet users is rapidly increasing given that an ever growing number of photos, videos and films in high-resolution quality are sent over the internet. BITKOM calls for more and even faster broad band internet connections. This would benefit the economic development given that in Germany alone connecting all households to a modern glass fibre net would lead to investments amounting to up to 50 billion Euros. 