The demand for greater bandwidth is one of the central themes driving the market. According to a recent study published by the cross-professional organization VATM and the market research company Dialog Consult, the volume of data generated by the increase in broadband connections is approximately 20 percent year over year and has tripled in the last five years. Video data accounts represent approximately 40 percent of all internet traffic, and this is projected to increase by 90 percent by 2014. Private households and businesses utilize bandwidth wherever it is available. Based on market research conducted by KEYMILE, a leading provider of cutting-edge technology for communications solutions in access and transmission systems, the demand for an "optimal" broadband connection will increase almost sixfold from 2011 to 2016, from 25-30 Mbps to 150-200 Mbps. This is primarily driven by increased demand for IPTV services.

Network operators across Germany and regional telecommunications companies must consider ISDN assets in addition to the ever-increasing demand for broadband internet. For example, multi-service access platforms are particularly well-suited to areas where broadband internet has been deployed. They allow network operators to simultaneously provide broadband internet and traditional fixed-line telephone services. This way, households and businesses can continue using their older devices while also benefiting from new services. KEYMILE has identified the following trends that will play a decisive role in how the telecommunications market develops in Germany:

1. The growth of VDSL2 is an important step towards FTTH networks.
VDSL2 has been available in most cities and increasingly in rural areas since the beginning of this year. This has given approximately one-third of households access to high-speed internet. This growth will continue in order to eliminate white spots (areas where there are insufficient broadband connections). Fiber optic cables have been installed all the way to the street cabinet (FTTC) for VDSL2 broadband connections. This is a good starting point for future fiber-to-building (FTTB) and fiber-to-the-home (FTTH) expansion. Network operators can offer ADSL and VDSL2 services with just one card, thanks to modern VDSL2 cards. They are also able to offer triple-play services, such as broadband internet, VoIP, video on demand, and IPTV, to residential customers over DSL. Furthermore, the latest vectoring technology reduces performance drops during large-scale deployments to deliver data rates of over 50 Mbps for multiple simultaneous VDSL signal transfers.

2. The expansion of the fiber optic network is gradually gaining momentum.
VDSL2 vectoring is an ideal interim measure for providing high bandwidth in FTTH networks. Germany lags behind other European countries in terms of fiber optic broadband expansion. For example, 10 percent of all connections in Lithuania, Norway, and Sweden are fiber optic, compared to less than 1 percent in Germany. However, expansion is gaining momentum, primarily driven by local and regional utility companies and telecommunications firms. These have established new fiber optic networks or expanded existing ones in Munich, Oldenburg, and Schwerte, for example.

3. Better Cost Distribution with Open Access Networks
Extending the fiber optic network to every home requires massive infrastructure investments with a long-term return on investment, which is unusual for network operators. Cost distribution will be easier under new regulations on the expansion of open access networks recently adopted by the Next Generation Access (NGA) forum. These open access networks will allow operators of multiple networks to easily access local loops. The potential for cost sharing in open access networks is likely to encourage further investment in fiber optic networks. The German Federal Broadband Communications Association estimates that additional investment is likely to triple the number of households with fiber optic connections by 2015.

"Industry experts believe that demand for high-speed broadband connections will increase sixfold between 2011 and 2016. So, continuing to develop VDSL2 connection points is an important step," says Klaus Pollak, Director of Consulting and Projects at KEYMILE. "In the long term, fiber optic networks are the only way to meet the growing demand for broadband services. This requires substantial investment. Above all, local projects involving agreements between cities and regional energy providers, for example, can increase the financial resources needed to expand the fiber optic network. In the meantime, VDSL2 represents an interim technology that creates the necessary infrastructure for full and uninterrupted fiber optic connections from FTTC to FTTB/FTTH."

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