producer price index for wired, wireless, satellite and telecommunications services in germany

Federal Statistical Office of Germany

FSO Germany - Peter Roemer - Division Prices – 2008 MEETING OF VOORBURG GROUP, AGUASCALIENTES

PRODUCER PRICE INDEX FOR WIRED, WIRELESS, SATELLITE AND TELECOMMUNICATIONS

SERVICES IN GERMANY

2008 MEETING OF VOORBURG GROUP



DEFINITION OF THE SECTORTelecommunications comprises

transmission of

voice, data, text, sound and video

content, without being involved in its creation



Structure of the German market63.6 Bill EUR turnover in 2006, thereof

- 20.5 Bill EUR fixed line telephony

- 22.1 Bill EUR mobile Phone services

- 0.8 Bill EUR leased lines

- 7.4 Bill EUR interconnection

- 3.0 Bill EUR cable TV

- 9.8 Bill EUR other services



Challenges of TC for price statistics

Market characteristics rapid changes in technology permanent introduction of new services strong competition between companies large changes in the market position of

companies



Challenges of TC for price statistics

Statistical challenges good timing for introduction/dropout of

services Handling of changes in the condition of

services quality adjustments for new services handling of bundles sensitiveness of data



CPI and SPPI for TCcalculation within one unit

Advantages

persons have+ a good expertise of the markets + good contacts to companies dual use of information

but

- separate calculation procedures for CPI and SPPI



Development of the German SPPI for TC In 2006 coordinated work started to revise

the CPI and to develop the SPPI

Work in two stages:

1. obtaining the weighting data for CPI and SPPI

2. developing the current surveys for SPPI

The existence of a legal obligation made work much easier than in a previous pilot phase 2003/2004



In Germany the regulation authority is not allowed to pass individual statistical data to Destatis

but Destatis got much technical advice from regulator

regulator‘s annual questionnaires were used as a basis for statistical questionnaires

results were cross checked

statistical questionnaires contained weighting information required for CPI and SPPI

Cooperation with the regulator



Business to Business- and Business to All-approach

OECD/Eurostat task force: all sectors including the

public sector or private householders

EU-regulation 1158/2005 (concerning short term statistic STS-regulation)

covers only services delivered to customers that are enterprises

all

businessto

businessto

business

SPPI-concepts:



Business to Business- or Business to All-approach

According to recent EU recommendations

Germany follows the Business to All-approach



Sample design

- Cut-off sample of all companies with a turnover of 100 Mill EUR and more

- sample comprises 30 companies

- covers 95% of the whole turnover of TC



Collection of informationUnit value approach

Units observed are:

- Turnover and

- number of .. (e.g. participants) or

- minutes of telephone calls or

- GByte of data transmission



Survey programme

Division into two categories:

- Fixed line telephony and internet use

- mobile telephony



Main activities observedFixed line telephony/internet use

- Private final clients (minute prices by type of call, VoIP, flat rates, bundled products by types etc.)

- Business final clients (same breakdown as above)

- Wholesale of phone calls (specific breakdown per company)

- Leased lines

- Internet (e.g. provision and access via broad band/narrow band by type, flatrates)



Main activities observedMobile telephony

- Private and business final clients (basic fee, calls into different nets, flatrates, prepaid cards etc.)

- Wholesale (contract clients, prepaid cards, calls by nets, etc.)

- National roaming (language, SMS, MMS, etc.)

- International roaming (see above)



Flat rates and bundled products- Increasing importance since 2006

- flat rates common for fixed line telephony, mobile phone, Internet

- bundled products mainly fixed line telephony and Internet

- all types of bundled products exist (combination of flat rates and/or quantity related tariffs)

- shift to higher data transmission standards in Internet use (quality change)

- regular update of survey programme necessary

-



Burden for companies

- Specific questionnaires for companies according to their activities.

- These questionnaires form a subset of the complete survey programme



Calculation procedure

Separate computation for the sectors

- fixed line telephony/internet (no separation because of bundling) and

- mobile telephony

Company specific calculation (drastic changes of market share of market participants)



Calculation procedure

- Per company service output is divided into homogeneous subsets for which value and quantity data are available

- indices per service output are calculated and aggregated at the level of the company

- indices for companies are aggregated to sectoral indices

- sectoral indices are aggregated to TC total



Discussion ?!

Roemer Peter, Destatis GermanyTelefone: ++49 (0) 611 75-2332 E-Mail: [email protected]

producer price index for wired, wireless, satellite and telecommunications services in germany

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