Significance of broadband

In Germany broadband Internet is seen as being important at the macro-economic level. "Over the coming years access to high-performance broadband infrastructure will be a crucial precondition for the global competitive capacity of German industry". More than 90% of experts at public institutions agree to a high or very extent with this statement.¹

Apart from its importance in relation to the competitiveness of German business broadband Internet is increasingly regarded as a productivity factor in itself and is implemented as such to increase productivity: almost 72% of the experts agree to a high or very extent with the statement that over the next few years broadband-based applications can significantly increase productivity in German companies. This view clearly shows that Germany would be risking its leading global competitive position if it does not systematically develop its broadband Internet infrastructure.

Innovation and targeted investment in technology and knowledge based business sectors is absolutely essential to consolidate and expand this competitive position. In line with this more than 56% of the experts at public institutions see to a high or very high extent broadband Internet as one of the main drivers for innovation and investment in Germany in the near future. Broadband Internet and positive economic development are inseparable. This means that the technology is becoming more important for safeguarding German affluence.

The economic importance of broadband Internet is also reflected in our day-to-day lives - as indicated by the recent popularity of the term digital lifestyle. Digital lifestyle represents a fundamental change in our social and communications structures. For instance, more than 90% of Social Web experts concord to a high or very high extent with the statement that Internet-based applications available anywhere at any time will permeate our daily lives.

This development has become so obvious in the last few years, especially when it comes to the media sector. Internet TV, video-on-demand or digital newspapers and blogs are indicative of these fundamental changes that are leading to a more personal, customized use of media in our society. It is therefore not surprising that more than 85% of Social Web experts believe to a high or very extent that the spread of broadband Internet supports the individualized and personalized use of media.

Faster transmission speeds also represent more comfort, which this translates into more "offliners" using the Internet. Social Web experts share this view - more than 80% agree with the statement that to an increasing extent the Internet is being used by groups that until now had been averse to using the Internet (e.g. elderly people over 50).

The growth in the importance of broadband Internet in both economic and social terms has a positive impact on the information and telecom sector in Germany. This field of activity is crucial for the domestic economy and, according to forecasts by experts at public institutions, will experience long-term growth. With 2004 as the base year the market volume is set to grow substantially from EUR 134 to EUR 223 billion by 2015 (Figure 1).

Figure 1:		Growth of the information and telecom market in Germany through 2015 (experts from public institutions)2