Communications

Report by New Street Research

While German broadband volume growth is slowing, New Street argues this is outweighed by a more rational market structure taking shape. Fibre overbuild looks set to remain far lower than in most other markets, supporting sustainable pricing and derisking the payback on high levels of FTTH capex per premise. Their report highlights the growing number of wholesale deals emerging; how the MDU market structure is likely to play out given the new draft law amendment; and evolving thoughts on the SDU fibre overbuilder market where they have more visibility on the longer-term wholesale dynamics. New Street also examines the implications for key players including Deutsche Telekom, Tele Columbus and Deutsche Glasfaser.

Communications

Report by New Street Research

New Street looks at the impact of the Telecoms Law on German apartment buildings - a market of 21m premises - one of the largest “single” markets in Europe. Specifically, they focus on 1) the impact of the break-up of the bulk contracting for TV, 2) the way FTTH could be deployed to these buildings, 3) how in-home wiring could be shared to reduce capex costs. The battle for ultra-fast broadband access into these premises is just beginning. Relevant stocks include Vodafone and Deutsche Telekom, while New Street believes Tele Columbus could be one of the most interesting high-yield names in Europe.