An Economic View on Mobile and Fixed Broadband Networks in Germany

Broadband markets are subjected to competition of different fixed (copper, coax, fiber) and mobile technologies (4G/LTE, 5G). In the case of internet-access, fixed broadband connections reach currently higher connections speeds than mobile connections. Due to new technologies as LTE Advanced and 5G, mobile accesses get a bandwidth boost and reach a stronger position in terms of broadband speed. This paper discusses mobile radio technologies' influence on broadband markets in the world and especially in Germany. We will answer the question: Will mobile infrastructures dominate broadband markets in terms of market share, access speed, distribution and number of subscribers? First we will give an overview of the current mobile and fixed broadband developments in the world and particularly in Germany, focusing on the number of subscribers, data traffic and revenues. In the second part of the paper, we discuss the field of competition and in which fields mobile and fixed infrastructures are in a direct competition. Furthermore, we will present the effect of the different technical characteristics of the mobile and fixed technologies and their impact on the broadband markets. Finally, we try to figure out how broadband technologies will develop in the short and long run.