Strategy Analytics: United Internet Surpasses Vodafone in German Broadband

United Internet has become the second largest Broadband Service Provider (BSP) in Germany, according to a report published by Strategy Analytics.

The report, "New Number Two in Germany for Q209: United Internet Surges Ahead of Vodafone," notes that United Internet's recent acquisition of Freenet helped the service provider reach 3.5 million subscribers, and propelled it into second position in the German market.

A highly fragmented market, Germany's nine major broadband service providers (BSPs) have a combined market share of nearly 90 percent. Strategy Analytics expects the German broadband market to undergo continued merger and acquisition activity in the upcoming year.

Incumbent Deutsche Telekom continues as market share leader, reporting over 11 million residential broadband subscribers at the end of the second quarter. United Internet has surpassed Vodafone (formerly Arcor) as the leading alternative carrier, with an estimated 14 percent market share.

"Though the German market has begun consolidating, it still has a way to go," said John Lee, Analyst in the Strategy Analytics Digital Consumer Practice. "Hansenet, Telecom Italia's German broadband unit, is still on the block, and Telefonica appears poised as a likely acquirer."

The report tracks quarterly subscriber growth trends for over 75 broadband service providers (BSPs) operating across Europe, and covers key metrics such as subscriptions, market share, net adds and ARPUs.

Strategy Analytics, Inc. provides timely and actionable market intelligence focused on opportunities and disruptive forces in the areas of Automotive Electronics and Entertainment, Broadband Connected Home, Mobile & Wireless Intelligent Systems and Virtual Worlds.

((Comments on this story may be sent to newsdesk@closeupmedia.com))

Related terms: acquisition, automotive, bandwidth, electronics, entertainment, europe, germany, market, market share, merger, residential, telecom, wireless