The principle of net neutrality was adopted by the European Union as a regulation promoting equality among all data packets in the Internet. Considering net neutrality from a purely economic viewpoint, however, the general possibility to prioritize data packets would likely lead to a more efficient ... more

Broadband internet expansion is a topic of widespread discussion in Germany right now. But the country still has not met its own targets. Almost 100 percent of households are supplied with broadband connections with up to six megabits per second, yet Germany has lots of room to catch up when it ... more

According to DIW Berlin estimates, the German economy should grow by 1.9 percent this year and 1.7 percent next year. The GDP growth forecast has thus decreased by 0.5 percentage points for this year and by 0.2 percentage points for the coming year compared to DIW Berlin’s March forecast. ... more

The political conditions for growth are currently dominated by increased uncertainty; this is particularly weighing on investment activity and slowing down the global economy. DIW Berlin is lowering its forecast slightly for this year and the next to 4.1 percent and 3.9 percent, respectively. ... more

Compared to last year, the German economy is weakening noticeably. Orders from abroad are decreasing and domestic companies are holding back on investments. However, capacity utilization remains high—also because the government will boost the incomes of private households next year. However, ... more

• Current DIW Weekly Report 25-26/2018
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Broadband internet expansion is a topic of widespread discussion in Germany right now. But the country still has not met its own targets. Almost 100 percent of households are supplied with broadband connections with up to six megabits per second, yet Germany has lots of room to catch up when it comes to gigabit-capable connections—particularly in sparsely populated regions. On the demand side, copper cable connections are the technology with the largest market share. At between one and two percent, pure fiber-optic connections only play a minor role. In international comparison, Germany’s need to get up to speed becomes very obvious. The OECD average for fiber-optic connection demand is 21 percent of the overall broadband market. Currently, a relatively low willingness to pay and high investment costs are slowing down the momentum of both demand and supply in Germany. But demand is on a constant growth course. In order to develop a full-coverage gigabit infrastructure by 2025, the government should aim for a well-balanced combination of regulatory incentives for private sector investments and effective subsidies to cover “blank spots”.

The principle of net neutrality was adopted by the European Union as a regulation promoting equality among all data packets in the Internet. Considering net neutrality from a purely economic viewpoint, however, the general possibility to prioritize data packets would likely lead to a more efficient use of existing network capacity. This is particularly applicable given the growth in data traffic and time-sensitive applications such as live streaming. Competition among network operators could intensify if they had the possibility to differentiate their offers more finely—and private households would be the primary beneficiary. However, modifications in the spirit of net neutrality must go hand in hand with a clear commitment to competition law and its enforcement. Access to prioritization of individual data packets must be transparent and equally available to all network participants. Network operators which also act as content providers as well as market participants with strong market positions in particular must not have the possibility to discriminate content providers.