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Telecommunications Resellers in Germany - Market Research Report (2015-2030)

Ashkan Salim Ashkan Salim Frankfurt, Germany Last Updated: July 2025 WZ J61.90DE

Revenue

€13.3bn

2025

€13.3bn

Past 5-Year Growth

Profit

€X.Xbn

Employees

30,403

Businesses

1,840

Wages

€X.Xbn

Telecommunications Resellers in Germany industry analysis

In the past five years, the internet provider industry in Germany has been characterised by intense competition and structural change. Between 2020 and 2025, industry revenue fell by an average of 4.4% per year. In addition to ongoing price pressure, the market exit of United Internet also contributed significantly to the decline in revenue. Internet providers do not invest in network expansion themselves, but instead purchase access and network capacity from network operators. In recent years, internet providers have increasingly focused on intensifying their marketing and sales activities in order to promote the acceptance of new technologies such as fibre optics among end customers. At the same time, they have relied on flexible tariff structures, innovative contract models and specialised value-added services to assert themselves in the dynamic market environment and retain customers in the long term.
In 2025, industry revenue is expected to fall by a further 3.2% to €13.3 billion. The main reason for this is the fundamental change at United Internet, which began with the establishment of its own mobile network by its subsidiary 1&1 in December 2023. Over twelve million mobile customers will now be gradually migrated to the new 1&1 network, a process that the company expects to be completed by the end of 2025. In future, the mobile revenues of this company will be allocated to the competitor sector J61.20DE Wireless Telecommunications, which will lead to a noticeable outflow of revenue in the internet provider market. The growing share of high-performance fibre optic connections, the increasing spread of modular bundled products and innovations such as cloud-based services, managed VPNs and self-service portals continue to shape the market. Internet providers are responding with personalised offers, digital platforms and targeted information campaigns in order to increase the use of modern broadband products and strengthen customer loyalty. In the highly regulated, price-sensitive market environment, the ability to innovate products and organise processes efficiently remains crucial to success.

In the next five years, industry revenue is expected to increase at an average annual rate of 1.4% and thus amount to 14.3 billion euros in 2030. The internet provider sector in Germany is undergoing radical change, as United Internet, the new network operator, is significantly altering the competitive structure. This change is leading to intense competitive pressure, but is opening up opportunities for product differentiation and service innovations for the remaining providers. At the same time, demand for high-performance broadband connections is increasing, while the expansion of 5G and increased competition among network operators are improving purchasing conditions for providers. These market conditions enable providers to expand their profit margins through more favourable wholesale prices and more efficient tariffs. They can consolidate their market position through innovative products, a targeted customer approach and flexible tariff models.

Trends and Insights

  • Internet providers in Germany act as resellers without their own network infrastructure, which requires close but tense cooperation with network operators. This structure promotes innovation pressure and competition, while at the same time limiting the providers' profit margins.
  • The internet provider sector generates the highest share of revenue with fixed-network connections and broadband internet. While revenue in this area is stagnating, revenue from mobile connections is increasing.
  • The centre region has the highest number of companies in the sector. This is due to the large population in the region, which means there are a correspondingly large number of potential customers.
  • The industry is characterised by strong internal competition. Fixed and mobile connections as well as data services are characterised by their homogeneity, which is why companies can hardly stand out from the competition.
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Industry Statistics and Trends

Market size and recent performance (2015-2030)

Industry revenue has declined at a CAGR of 4.4 % over the past five years, to reach an estimated €13.3bn in 2025.

Trends and Insights

The German telecommunications market is characterised by strong competition due to its special market structure

  • In Germany, internet providers act as resellers of telecommunications services. They offer both fixed and mobile connections as well as various types of internet access such as xDSL, VDSL, fibre optic (FTTH/B), cable or mobile data connections (e.g. LTE, 5G). These providers are characterised by the fact that they do not have their own physical infrastructure. Instead, they purchase access and network capacity from network operators such as Telekom Deutschland, Vodafone or Telefónica. This is done through standardised regulatory and technical wholesale products such as bitstream access, layer 2 BSA or via unbundling of the local loop. The purchased services are bundled into own products and sold to end customers via the company's own brand.
  • Additional trends and insights available with purchase
Telecommunications Resellers in Germany
Revenue (2015-2030)
IBISWorld Logo Source: IBISWorld

Industry outlook (2025-2030)

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

Trends and Insights

United Internet now operates its own mobile network, which changes the competitive conditions in the industry

  • United Internet is one of the leading German internet providers and has long helped shape the market as a particularly large reseller of network capacity. To date, the company has provided private and commercial customers with landline and mobile phone connections as well as internet-based services, mainly using the Telefónica and Vodafone networks as a mobile virtual network operator. With the establishment of its own mobile network by its subsidiary 1&1, which started in December 2023, United Internet is now undergoing a fundamental transformation. More than 12 million mobile customers will be gradually migrated to the new 1&1 network, which is scheduled to be completed by the end of 2025.

Biggest companies in the Telecommunications Resellers in Germany

Company
Market Share (%)
2025
Revenue (€m)
2025
United Internet AG
2,711.0
Freenet AG
2,318.6
Deutsche Telekom AG
1,714.1

To view the market share and analysis for all 6 top companies in this industry, view purchase options.

Products & Services Segmentation

Telecommunications Resellers in Germany
Products & Services
IBISWorld Logo Source: IBISWorld

Industry revenue is measured across several distinct product and services lines, including Landlines and broadband internet, Mobile phone connections and Mobile data services. Landlines and broadband internet is the largest segment of the Telecommunications Resellers in Germany.

Trends and Insights

The industry's sales of fixed-network connections and broadband internet have stagnated over the last five years

  • The fixed-line and broadband internet segments account for the largest share of industry revenue.
  • More insights available in the full report

Table of Contents

About this industry

Industry definition

Companies in this sector offer private households, companies and public institutions landline and mobile phone connections purchased from network operators as well as access to the internet. Its range of services also includes the resale of network capacity and the provision of specialised telecommunications solutions such as virtual private networks (VPNs). This sector does not include operators of telecommunications networks.

What's included in this industry?

Products and services covered in the Telecommunications Resellers industry in Germany include Sale of mobile services, Sale of fixed network services and Sale of data services.

Companies

Companies covered in the Telecommunications Resellers industry in Germany include United Internet AG, Freenet AG and Deutsche Telekom AG.

Purchase this report to view all 6 major companies in this industry.

Related Terms

Related terms covered in the Telecommunications Resellers industry in Germany include bit current access, fibre to the building (fttb), fibre to the home (ftth), internet protocol television (iptv), ipv6 (internet protocol version 6), mobile virtual network operator (mvno), network virtualisation, over the top (ott), vectoring and very high speed digital subscriber line (vdsl).

Industry Code

WZ 2008

WZ 61.90 - Telecommunications Resellers 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

Internet providers in Germany act as resellers without their own network infrastructure, which requires close but tense cooperation with network operators. This structure pro...

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 (2015-2024) and forecast (2025-2030)
  • Employees, including historical (2015-2024) and forecast (2025-2030)
  • Businesses, including historical (2015-2024) and forecast (2025-2030)
  • Profit, including historical (2015-2025)
  • 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

The internet provider sector generates the highest share of revenue with fixed-network connections and broadband internet. While revenue in this area is stagnating, revenue f...

In this chapter

  • Products & Services
  • Major Markets

Key metrics

  • Largest market segment and value in 2025
  • Product innovation level

Charts

  • Products & services segmentation in 2025
  • Major market segmentation in 2025

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 has the highest number of companies in the sector. This is due to the large population in the region, which means there are a correspondingly large number o...

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 2025

Tables

  • Number and share of establishments in each region in 2025
  • Number and share of revenue each region accounts for in 2025
  • Number and share of wages each region accounts for in 2025
  • Number and share of employees in each region in 2025

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

The industry is characterised by strong internal competition. Fixed and mobile connections as well as data services are characterised by their homogeneity, which is why compa...

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 2020-2025
  • 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

United Internet AG has the highest market share in the Internet provider sector. The company offers a wide range of products and services, including web hosting, cloud applic...

In this chapter

  • Market Share Concentration
  • Companies
  • Company Spotlights

Charts

  • Industry market share by company in 2021 through 2025
  • Major companies in the industry, including market share, revenue, profit and profit margin in 2025
  • Overview of United Internet AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Freenet AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of Deutsche Telekom AG's performance by revenue, market share and profit margin from 2019 through 2025
  • Overview of revenue, market share and profit margin trend for 3 additional companies

Detailed analysis

  • Description and key data for United Internet AG, and factors influencing its performance in the industry
  • Description and key data for Freenet AG, and factors influencing its performance in the industry
  • Description and key data for Deutsche Telekom AG, and factors influencing its performance in the industry
  • Description, key data and performance trends for 3 additional companies

External Environment

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

Analyst insights

The increasing level of digitalisation over the years is benefiting the industry. An increase in the level of digitalisation is accompanied by an increase in demand for inter...

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 (2015-2030) 
  • Assistance historical data and forecast (2015-2030) 

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

The profit margin of the individual industry players can vary greatly depending on the business model. Industry players acting as internet providers achieve far higher profit...

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 2025
  • Average sector operating costs as a share of revenue, including purchases, wages, depreciation, utilities, rent, other costs and profit in 2025
  • Investment vs. share of economy

Data tables

  • Cash Flow & Debt Service Ratios (2015-2030)
  • Revenue per Employee (2015-2030)
  • Revenue per Enterprise (2015-2030)
  • Employees per Establishment (2015-2030)
  • Employees per Enterprise (2015-2030)
  • Average Wage (2015-2030)
  • Wages/Revenue (2015-2030)
  • Establishments per Enterprise (2015-2030)
  • IVA/Revenue (2015-2030)
  • Imports/Demand (2015-2030)
  • Exports/Revenue (2015-2030)

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 (2015-2030)
  • IVA (2015-2030)
  • Establishments (2015-2030)
  • Enterprises (2015-2030)
  • Employment (2015-2030)
  • Exports (2015-2030)
  • Imports (2015-2030)
  • Wages (2015-2030)

Top Questions Answered

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

What is the market size of the Telecommunications Resellers industry in Germany in 2025?

The market size of the Telecommunications Resellers industry in Germany is €13.3bn in 2025.

How many businesses are there in the Telecommunications Resellers industry in Germany in 2025?

There are 1,840 businesses in the Telecommunications Resellers industry in Germany, which has declined at a CAGR of 2.5 % between 2020 and 2025.

How may import tariffs affect the Telecommunications Resellers industry in Germany?

The Telecommunications Resellers 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 Telecommunications Resellers industry in Germany?

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

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

The market size of the Telecommunications Resellers industry in Germany has been declining at a CAGR of 4.4 % between 2020 and 2025.

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

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

What are the biggest companies in the Telecommunications Resellers industry in Germany?

The biggest companies operating in the Telecommunications Resellers industry in Germany are United Internet AG, Freenet AG and Deutsche Telekom AG

What does the Telecommunications Resellers industry in Germany include?

Sale of mobile services and Sale of fixed network services are part of the Telecommunications Resellers industry in Germany.

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

The company holding the most market share in the Telecommunications Resellers industry in Germany is United Internet AG.

How competitive is the Telecommunications Resellers industry in Germany?

The level of competition is high and steady in the Telecommunications Resellers 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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