Average Mobile Internet Speed Falls in Germany

Internet speed on mobile networks in Germany has declined in 2019 compared with the previous year, according to a recent survey of 65,000 users.

The average speed dropped from 43.7 Mbps to 28.1 Mbps on Deutsche Telekom’s network, while it fell from 36.4 Mbps to 21.1 Mbps on Vodafone’s. On the O2 network, the average speed decreased from 26.9 Mbps to 20.5 Mbps. 

In rural areas of the country, speeds are particularly low. In cities, users surf at twice the speed of their counterparts in rural regions over the networks of DT and Vodafone.  

These results from Germany—a highly developed mobile market—are rather dramatic, it seems to us. The average speed decreased by around 35 percent on DT’s network, while on Vodafone’s and O2’s the figures are around 42 percent and 24 percent, respectively. And this is in only one year, the question is, what are the causes of this phenomenon?

While it is possible that the mobile operators are at fault for not maintaining their networks adequately, it is more likely that the chief culprit is overcrowding on the networks. In other words, the rapidly growing demand for data is simply outpacing the capacity of the networks to accommodate it. The disparity between rural and urban areas speaks to the relative lack of investment in networks in less-populated and more remote regions, but the root cause of the problem in both kinds of environments remains essentially the same—an increase in demands on the networks.

These results point in one direction—5G. The drop in speeds, it is to be hoped, is merely temporary, and when the next-generation service is rolled out across the country, it will no longer be a problem. As for those who remain on 4G/LTE for financial or other reasons, they will see speeds rise again, as well, since congestion on the older networks will be less of an issue as many users migrate to 5G.  

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance.  

To learn more about Tarifica, please visit www.tarifica.com 

Vodafone Germany to Launch Unlimited-Data Business Tariff

Vodafone Germany will launch a new unlimited-data flat-rate tariff for business customers on 26 October, according to a report. The new Vodafone Business Black+ tariff will cost €169.00 (US $189.00) per month net, or €200.00 (US$223.00) per month gross. The price of €200.00 is the same as that of the existing Vodafone Black tariff, which is currently available to private and business customers alike and offers a flat rate for calls and texts plus 30 GB of mobile data.

 

Unlimited data is a great deal for customers but can be a bad one for operators. We have seen large sectors of the mobile market move away from unlimited-data offers due to high costs, considering them unsustainable. In some cases, they have offered it essentially in name only—either throttled to near-unusability after a limit is reached or with other stipulations that limit data consumption in other ways for certain customers. If Vodafone Germany’s new Business Black + truly has unlimited data, then it is a bold move that could grab market share for the operator in the enterprise sector. The pricing is on the high side for a monthly postpaid plan, but with unlimited data rather than an allotment of 30 GB (generous as that is) it represents a major improvement on the comparable consumer plan, which makes it attractive. In general, we do not imagine business mobile customers being as gluttonous about data consumption as consumers are, since massive video and music streaming are the biggest data hogs, and neither is a part of most business use.

In addition, offering the unlimited-data option to business customers may make more financial sense to the operator than offering it to all customers, in that the client base is smaller and therefore the potential cost damage would be limited. On the other hand, if the pricing is right, Business Black + could end up being not a loss leader but a profitable and sustainable option for Vodafone. 

Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com

Regulator Threatens Telefonica With Fine Over Roaming Fees

Germany’s Federal Network Agency is threatening to fine Telefonica Deutschland for charging customers too much for roaming within the EU, according to a news report. Under new EU regulations, announced at the end of 2015, as of 1 May roaming fees must not exceed 5 cents per minute. Telefonica, however, is still charging many customers 20 cents a minute, which is has said it will reduce to 14.95 cents per minute for contract customers starting on 1 July. A spokesperson for the Federal Network Agency said that it would formally notify the operator that it must conform to the EU directive or face a fine.    The negotiations to end roaming surcharges within the EU by mid-2017 were complex and lengthy, but the European Commission has definitively ruled that it will happen and has mandated incremental reductions to accomplish the goal, and member states are charged with enforcing the rules. The German regulator’s threat against Telefonica is a clear indicator that the anti-roaming legislation is being taken seriously and that no prices exceeding the limits, even if applied only to certain customers on a legacy basis, will be tolerated. The writing is on the wall for roaming fees in Europe, and operators will have to adjust.  Tarifica is the global leader in monitoring and analyzing telecom pricing. Covering hundreds of operators in every region of the globe, Tarifica’s databases of mobile and fixed line data and voice tariffs are among the largest and most in-depth in the world. Tarifica is also a leading publisher of benchmark and other pricing reports, and its analysts are recognized authorities in the telecom industry, relied upon by operators and businesses worldwide for pricing insight and guidance. To learn more about Tarifica, please visit www.tarifica.com