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Wired Telecommunications Carriers in Germany - Market Research Report (2016-2031)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: January 2026 WZ J61.10DE

Revenue

€49.8bn

2026

€49.8bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

84,797

Businesses

631

Wages

€X.Xbn

Wired Telecommunications Carriers in Germany industry analysis

In the past five years, wired telecommunications in Germany has undergone a fundamental change. The demand for high-performance broadband connections has grown steadily, while traditional DSL and HFC technologies are increasingly being replaced by fibre optics. This structural change was accelerated by government funding programmes and municipal cooperation in the expansion. Network operators increasingly focused their investment strategies on fibre optics in order to remain competitive in the long term. At the same time, bundled products comprising landline, internet, mobile telephony and TV became much more relevant, as they retain consumers with convenience, cost benefits and additional services. These product bundles reduced customers' willingness to switch and strengthened brand loyalty, which shifted competition to new differentiating features such as quality and service. Since 2021, sales have increased by an average of 0.2% per year and are expected to amount to 49.8 billion euros in the current year.

In the current year, industry sales are expected to grow by 0.9%. In the current market environment, the industry is under strong competitive pressure from mobile phone providers and internet providers without their own infrastructure. The declining importance of fixed-line telephony, combined with an intense price war, is forcing providers to develop new business models and integrated platform strategies. Fibre optics and open access concepts are shaping the focus of investment, while the industry continues to consolidate through takeovers and mergers. Only a few large operators now dominate the market and have considerable economies of scale. Medium-sized providers are increasingly looking for niches in regional markets or business solutions.

In the next five years, industry turnover is expected to increase by an average of 1.5% per year. By 2031, it should amount to 53.5 billion euros. The industry is in a transitional phase, characterised by high investments in the expansion of fibre optic networks. This will have a negative impact on profits in the short term, but will strengthen the technological basis and competitiveness in the long term. Network operators are modernising their infrastructure in order to meet the increasing demand for fast and reliable connections for consumers and companies. Early fibre investments are crucial, especially in cities, as they ensure stable customer demand and high barriers to entry for competitors. Competition is increasingly shifting towards network quality, innovation and operational efficiency. With technologies such as Wavelength Division Multiplexing (WDM), telecommunications companies are increasing the performance of their networks, optimising their costs and creating the basis for future data-intensive applications.

Trends and Insights

  • The wireline telecommunications industry in Germany is undergoing a technological transformation characterised by a rapid transition from DSL and HFC to fibre optics. Telecommunications companies are making targeted investments in fibre optic infrastructure to ensure higher bandwidths, lower operating costs and long-term competitiveness.
  • Broadband connections via fibre optic networks are in high demand. Fibre optic cables can achieve faster transmission speeds than copper cables. This is particularly important for commercial customers.
  • The centre region is home to the most companies in the sector. Since more than a third of Germany's population lives there, the demand for telecommunications services is particularly high.
  • Internet providers are the biggest competitors in the industry. They also offer wired telecommunications services, but often at more favourable conditions.
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Industry Statistics and Trends

Market size and recent performance (2016-2031)

Industry revenue has grown at a CAGR of 0.2 % over the past five years, to reach an estimated €49.8bn in 2026.

Trends and Insights

Wired telecommunications in Germany is increasingly based on modern connection technologies

  • According to the Federal Network Agency's Telecommunications 2024 annual report, there were around 38.6 million contractually booked broadband connections in Germany at the end of 2024, compared to 35.2 million in 2019. DSL remains the most widely used access type with 23.6 million connections and a market share of around 61%. HFC networks provide 8.5 million connections, while fibre optic products (FttH/FttB) have seen the largest increase in recent years at 5.3 million.
  • Additional trends and insights available with purchase
Wired Telecommunications Carriers in Germany
Revenue (2016-2031)
IBISWorld Logo Source: IBISWorld

Industry outlook (2026-2031)

Market size is projected to grow over the next five years.

Trends and Insights

High investments in the expansion of the fibre optic network depress profits, but only temporarily

  • Although companies in the wired telecommunications sector in Germany continue to achieve high profit margins, these are slightly below the level of the last decade. The main reason for this is the considerable investment required to expand the fibre optic networks in order to modernise the existing infrastructure and improve its performance. Deutsche Telekom, Vodafone and other market players are currently investing billions in the nationwide expansion of the fibre-optic network, which will impact profitability in the short term, but will create the basis for a more stable and efficient network structure in the long term.

Biggest companies in the Wired Telecommunications Carriers in Germany

Company
Market Share (%)
2026
Revenue (€m)
2026
Deutsche Telekom AG
14,301.0
Vodafone Group plc
7,169.0
Telefónica Deutschland Holding AG
864.0

To view the market share and analysis for all 4 top companies in this industry, view purchase options.

Products & Services Segmentation

Wired Telecommunications Carriers in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Landline, Broadband and Cable network. Landline is the largest segment of the Wired Telecommunications Carriers in Germany.

Trends and Insights

Fibre-based solutions are becoming increasingly important in the broadband segment

  • The Broadband segment comprises the provision of internet access via fibre optic and copper cable networks.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Market players provide access for the transmission of voice, data, text, sound and images by means of wired infrastructure and operate cable transmission networks. The sector also includes companies that purchase such access and network capacity from network owners or operators. Internet service providers are not included.

What's included in this industry?

Products and services covered in the Wired Telecommunications Carriers industry in Germany include Landline, Broadband and Cable network.

Companies

Companies covered in the Wired Telecommunications Carriers industry in Germany include Deutsche Telekom AG, Vodafone Group plc and Telefónica Deutschland Holding AG.

Purchase this report to view all 4 major companies in this industry.

Related Terms

Related terms covered in the Wired Telecommunications Carriers industry in Germany include over the top (ott), internet protocol television (iptv), fibre to the building (fttb), fibre to the home (ftth) and asymmetric digital subscriber line (adsl).

Industry Code

WZ 2008

WZ 61.10 - Wired Telecommunications Carriers in Germany

Performance

Get an indication of the industry's health through historical, current and forward-looking trends in the performance indicators that make or break businesses.

Analyst insights

The wireline telecommunications industry in Germany is undergoing a technological transformation characterised by a rapid transition from DSL and HFC to fibre optics. Telecom...

In this chapter (4)

  • Current Performance
  • Outlook
  • Volatility
  • Life Cycle

Key metrics

  • Annual Revenue, Recent Growth, Forecast, Revenue Volatility
  • Number of Employees, Recent Growth, Forecast, Employees per Business, Revenue per Employee
  • Number of Businesses, Recent Growth, Forecast, Employees per Business, Revenue per Business
  • Total Profit, Profit Margin, Profit per Business

Charts

  • Revenue, including historical (2016-2025) and forecast (2026-2031)
  • Employees, including historical (2016-2025) and forecast (2026-2031)
  • Businesses, including historical (2016-2025) and forecast (2026-2031)
  • Profit, including historical (2016-2026)
  • Industry Volatility vs. Revenue Growth
  • Industry Life Cycle

Detailed analysis

  • Trends in supply, demand and current events that are driving current industry performance
  • Expected trends, economic factors and ongoing events that drive the industry's outlook
  • Key success factors for businesses to overcome volatility
  • How contribution to GDP, industry saturation, innovation, consolidation, and technology and systems influence the industry's life cycle phase.

Products and Markets

Learn about an industry's products and services, markets and trends in international trade.

Analyst insight

Broadband connections via fibre optic networks are in high demand. Fibre optic cables can achieve faster transmission speeds than copper cables. This is particularly importan...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2026
  • Product innovation level

Charts

  • Products & services segmentation in 2026
  • Major market segmentation in 2026

Detailed analysis

  • Trends impacting the recent performance of the industry's various segments
  • Innovations in the industry's product or service offering, specialization or delivery method
  • Key factors that successful businesses consider in their offerings
  • Buying segments and key trends influencing demand for industry products and services

Geographic Breakdown

Discover where business activity is most concentrated in an industry and the factors driving these trends to find opportunities and conduct regional benchmarking.

Analyst insights

The centre region is home to the most companies in the sector. Since more than a third of Germany's population lives there, the demand for telecommunications services is part...

In this chapter (1)

  • Business Locations

Charts

  • Share of revenue, establishment, wages and employment in each region
  • Share of population compared to establishments in each region in 2026

Tables

  • Number and share of establishments in each region in 2026
  • Number and share of revenue each region accounts for in 2026
  • Number and share of wages each region accounts for in 2026
  • Number and share of employees in each region in 2026

Detailed analysis

  • Geographic spread of the industry across Europe, and trends associated with changes in the business landscape
  • Key success factors for businesses to use location to their advantage

Competitive Forces

Get data and insights on what's driving competition in an industry and the challenges industry operators and new entrants may face, with analysis built around Porter's Five Forces framework.

Analyst insights

Internet providers are the biggest competitors in the industry. They also offer wired telecommunications services, but often at more favourable conditions.

In this chapter (4)

  • Concentration
  • Barriers to Entry
  • Substitutes
  • Buyer & Supplier Analysis

Key metrics

  • Industry concentration level
  • Industry competition level and trend
  • Barriers to entry level and trend
  • Substitutes level and trend
  • Buyer power level and trend
  • Supplier power level and trend

Charts

  • Market share concentration among the top 4 suppliers from 2021-2026
  • Supply chain including upstream supplying industries and downstream buying industries, flow chart

Detailed analysis

  • Factors impacting the industry’s level of concentration, such as business distribution, new entrants, or merger and acquisition activity.
  • Key success factors for businesses to manage the competitive environment of the industry.
  • Challenges that potential industry entrants face such as legal, start-up costs, differentiation, labor/capital intensity and capital expenses.
  • Key success factors for potential entrants to overcome barriers to entry.
  • Competitive threats from potential substitutes for the industry’s own products and services.
  • Key success factors for how successful businesses can compete with substitutes.
  • Advantages that buyers have to keep favorable purchasing conditions.
  • Advantages that suppliers have to maintain favorable selling conditions.
  • Key success factors for how businesses can navigate buyer and supplier power.

Companies

Learn about the performance of the top companies in the industry.

Analyst insights

Deutsche Telekom wants to push ahead with opening up its fixed network infrastructure to other providers. The company is already generating additional revenue through coopera...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2022 through 2026
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2026
  • Overview of Deutsche Telekom AG's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Vodafone Group plc's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of Telefónica Deutschland Holding AG's performance by revenue, market share and profit margin from 2020 through 2026
  • Overview of revenue, market share and profit margin trend for one additional company

Detailed analysis

  • Description and key data for Deutsche Telekom AG, and factors influencing its performance in the industry
  • Description and key data for Vodafone Group plc, and factors influencing its performance in the industry
  • Description and key data for Telefónica Deutschland Holding AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for one additional company

External Environment

Understand the demographic, economic and regulatory factors that shape how businesses in an industry perform.   

Analyst insights

The federal government is supporting the expansion of the fibre optic network. The Federal Ministry for Digital and Economic Affairs (BMDV) and KfW are offering companies fav...

In this chapter

  • External Drivers
  • Regulation & Policy
  • Assistance

Key metrics

  • Regulation & policy level and trend
  • Assistance level and trend

Charts

  • Regulation & Policy historical data and forecast (2016-2031) 
  • Assistance historical data and forecast (2016-2031) 

Detailed analysis

  • Demographic and macroeconomic factors influencing the industry, including Regulation & Policy and Assistance
  • Major types of regulations, regulatory bodies, industry standards or specific regulations impacting requirements for industry operators
  • Key governmental and non-governmental groups or policies that may provide some relief for industry operators.

Financial Benchmarks

View average costs for industry operators and compare financial data against an industry's financial benchmarks over time. 

Analyst insights

Telecommunications companies' expenditure on upstream services has fallen in recent years. Nevertheless, material costs remain high and still represent the largest cost facto...

In this chapter

  • Cost Structure
  • Financial Ratios
  • Key Ratios

Key metrics

  • Profit margin, and how it compares to the sector-wide margin
  • Average wages, and how it compares to the sector-wide average wage
  • Largest cost component as a percentage of revenue
  • Industry average ratios for days' receivables, industry coverage and debt-to-net-worth ratio

Charts

  • Average industry operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2026
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2016-2031)
  • Revenue per Employee (2016-2031)
  • Revenue per Enterprise (2016-2031)
  • Employees per Establishment (2016-2031)
  • Employees per Enterprise (2016-2031)
  • Average Wage (2016-2031)
  • Wages/Revenue (2016-2031)
  • Establishments per Enterprise (2016-2031)
  • IVA/Revenue (2016-2031)
  • Imports/Demand (2016-2031)
  • Exports/Revenue (2016-2031)

Detailed analysis

  • Trends in the cost component for industry operators and their impact on industry costs and profitability 

Key Statistics

Industry Data

Data Tables

Including values and annual change:

  • Revenue (2016-2031)
  • IVA (2016-2031)
  • Establishments (2016-2031)
  • Enterprises (2016-2031)
  • Employment (2016-2031)
  • Exports (2016-2031)
  • Imports (2016-2031)
  • Wages (2016-2031)

Top Questions Answered

Unlock comprehensive answers and precise data upon purchase. View purchase options.

What is the market size of the Wired Telecommunications Carriers industry in Germany in 2026?

The market size of the Wired Telecommunications Carriers industry in Germany is €49.8bn in 2026.

How many businesses are there in the Wired Telecommunications Carriers industry in Germany in 2026?

There are 631 businesses in the Wired Telecommunications Carriers industry in Germany, which has declined at a CAGR of 2.5 % between 2021 and 2026.

How may import tariffs affect the Wired Telecommunications Carriers industry in Germany?

The Wired Telecommunications Carriers industry in Germany is unlikely to be materially impacted by import tariffs with imports accounting for a low share of industry revenue.

How may export tariffs affect the Wired Telecommunications Carriers industry in Germany?

The Wired Telecommunications Carriers industry in Germany is unlikely to be materially impacted by export tariffs with exports accounting for a low share of industry revenue.

Has the Wired Telecommunications Carriers industry in Germany grown or declined over the past 5 years?

The market size of the Wired Telecommunications Carriers industry in Germany has been growing at a CAGR of 0.2 % between 2021 and 2026.

What is the forecast growth of the Wired Telecommunications Carriers industry in Germany over the next 5 years?

Over the next five years, the Wired Telecommunications Carriers industry in Germany is expected to grow.

What are the biggest companies in the Wired Telecommunications Carriers industry in Germany?

The biggest companies operating in the Wired Telecommunications Carriers industry in Germany are Deutsche Telekom AG, Vodafone Group plc and Telefónica Deutschland Holding AG

What does the Wired Telecommunications Carriers industry in Germany include?

Landline and Broadband are part of the Wired Telecommunications Carriers industry in Germany.

Which companies have the highest market share in the Wired Telecommunications Carriers industry in Germany?

The company holding the most market share in the Wired Telecommunications Carriers industry in Germany is Deutsche Telekom AG.

How competitive is the Wired Telecommunications Carriers industry in Germany?

The level of competition is high and increasing in the Wired Telecommunications Carriers industry in Germany.

Methodology

How are IBISWorld reports created?

IBISWorld has been a leading provider of trusted industry research for over 50 years to the most successful companies worldwide. With offices in Australia, the United States, the United Kingdom, Germany and China, we are proud to have local teams of analysts that conduct research, data analysis and forecasting to produce data-driven industry reports.

Our analysts start with official, verified and publicly available sources of data to build the most accurate picture of each industry. Analysts then leverage their expertise and knowledge of the local markets to synthesize trends into digestible content for IBISWorld readers. Finally, each report is reviewed by one of IBISWorld’s editors, who provide quality assurance to ensure accuracy and readability.

IBISWorld relies on human-verified data and human-written analysis to compile each standard industry report. We do not use generative AI tools to write insights, although members can choose to leverage AI-based tools within the platform to generate additional analysis formats.

What data sources do IBISWorld analysts use?

Each industry report incorporates data and research from government databases, industry-specific sources, industry contacts, and our own proprietary database of statistics and analysis to provide balanced, independent and accurate insights.

Key data sources in Germany include:

  • German Federal Statistics Office (Destatis)
  • European Statistics Office (Eurostat)
  • United Nations Comtrade

Analysts also use industry specific sources to complement catch-all sources, although their perspective may focus on a particular organization or representative body, rather than a clear overview of all industry operations. However, when balanced against other perspectives, industry-specific sources provide insights into industry trends.

These sources include:

  • Industry and trade associations
  • Industry federations or regulators
  • Major industry players annual or quarterly filings

Finally, IBISWorld’s global data scientists maintain a proprietary database of macroeconomic and demand drivers, which our analysts use to help inform industry data and trends. They also maintain a database of statistics and analysis on thousands of industries, which has been built over our more than 50-year history and offers comprehensive insights into long-term trends.

How does IBISWorld forecast its data?

IBISWorld’s analysts and data scientists use the sources above to create forecasts for our proprietary datasets and industry statistics. Depending on the dataset, they may use regression analysis, multivariate analysis, time-series analysis or exponential smoothing techniques to project future data for the industry or driver. Additionally, analysts will leverage their local knowledge of industry operating and regulatory conditions to impart their best judgment on the forecast model.

IBISWorld prides itself on being a trusted, independent source of data, with over 50 years of experience building and maintaining rich datasets and forecasting tools. We are proud to be the keystone source of industry information for thousands of companies across the world.

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