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German Net, Mobile Use to Soar in 2000 - Regulator
Posted: 26-Jan-2000 [Source: Reuters]

[Mobile penetration in Germany is expected to climb to 42.7 percent by year end according to this report.]

Frankfurt -- "German Internet and mobile phone use is expected to soar in 2000, but a post deregulation price war in Europe's largest phone market means revenues will only grow 6.7 percent, Germany's telecoms regulator said on Wednesday.

"About 20 million of Germany's 82 million-strong population are expected to be online by the end of this year as more Germans make use of the web at work, the regulator said, forecasting a 67 percent surge in Internet use.

"Estimates of 35 million mobile phone users by the end of 2000 were realistic, the regulator added, with price cuts in an increasingly competitive market and the arrival of Internet-compatible cellphones likely to tempt Germans.

"Prices fell around 20 percent in 1999, it said, driving a 70 percent surge in customer levels to 23.2 million.

"If the trend were to continue as expected, mobile penetration in Germany would climb to 42.7 percent by the end of the year, moving ever closer to rival continental markets from its current laggard 28.3 percent. But price pressures in Germany's recently deregulated telecoms market would also hit phone companies' revenues, the regulator said, forecasting a rise of only 6.7 percent in the value of the market to more than 96 billion marks ($49 billion) in 2000.

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