$109B Sales Predicted for German IT Market
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The Axel Springer Verlag, publishers of a wide range of print and online titles, including Germany's top tabloid, Bild Zeitung, have produced an extensive analysis of the German IT and telecoms market.
In the 74-page study, a detailed analysis is given of dynamic market developments in telecommunications and information technology. The study forecasts sales of over DEM 200 billion (US$109 billion) for 1999.
Growth in the ICT market in 1998 led to an 80 percent increase in advertising investment in the traditional media, reaching a total of DEM 1.6 billion (US$882 million). Since the beginning of the 1990s, this booming sector has, together with the automotive industry, become the most advertising intensive industry of all.
In 1998 also, Deutsche Telekom alone had an advertising budget of DEM 300 million (US$165 million). Deutsche Telekom, with a market share of 93 percent, is the clear leader in wireline activity. Nevertheless, they are forecast to lose up to 40 percent in long distance and foreign traffic this year to private SPs, like Otelo, Arcor and Mobilcom.
Consumer volumes in the German Internet market for hard and software, Internet access, online business etc., were around DEM 1.6 billion (US$882 million) in 1998.
The number of those online will exceed 10 million in 1999. In 1998, there were 8.4 million. This means an annual estimated growth rate, through end 2001, of 38 percent, making the Internet the strongest growth segment in the communications market.