The Implementation of Free WIFI service in the German public transport system

E. g. The Berlin Public Transport Company - BVG -


Project Report, 2010

19 Pages, Grade: 1,3


Excerpt

Table of Contents

1. Executive Summary

2. A justification of the chosen country and region
2.1 General country information: The Federal Republic of Germany
2.2 General region information: the city of Berlin

3. Product / service description: Broadband Wireless Internet Access
3.1 The current situation and necessity
3.2 Technical opportunities of implementation (in the appendix)

4. The marketing environment
4.1 PEST analysis
4.2 SWOT analysis

5. The consumer market – customer segmentation
5.1 Target groups
5.2 Buyer behaviour

6. Description of the chosen market entry method

7. Outline Marketing Plan: Introduction & launch and future perspective
7.1 Introduction & launch
7.2 Future perspectiv

I. Appendix

II. References

1. Executive Summary

The implementation of a broadband wireless internet service in the German public transport system is an important step for next generation networks in order to keep Germany up to date with world-wide technological development. Being a highly developed country in terms of IT, Germany is currently a step behind when it comes to free wireless access. The cancellation of Free Wi-Fi in Berlin and the negligence of the international research project ‘Broadband Wireless Internet Access in Public Transportation’, aided by the German Ministry of Education and Research, is a heavy setback for the country. Instead of setting a good example for other cities, the federal government returned this task to the private companies. Those, like the Deutsche Bahn, are slowly developing wireless access in all of their trains and train stations, but an auspicious plan for the next few years is not yet foreseeable. Several companies, like the Swiss company NetModule AG and Deutsche Telekom AG, offer the technical support which is required for an area-wide coverage of access points, but as of today there are no direct proceedings with local governments or with local public transport companies.

2. A justification of the chosen country and region

The Federal Republic of Germany was chosen because since Germany is one of the most highly developed Western industries and is ranked highly in terms of GDP. Moreover it is not understandable that Germany does not offer area-wide Wi-Fi for its citizens. The choice of taking the German capital Berlin as the region of implementing free Wi-Fi is based on the fact that Berlin is the biggest Germany city and could be a good example for other cities in order to be innovative, high developed and hence could save its status of supremacy. As an touristic hub, Berlin needs to bear in mind its reputation, not just towards the yearly millions of, but towards its citizens who embody the entire image of Berlin.

2.1 General country information: The Federal Republic of Germany

Germany has an area of 356,840 km² and approximately 82 million inhabitants, which means a population density of 230 persons per km². Like most western nations, Germany has a low number of young people and a quickly increasing life expectancy, causing a permanent shift towards older people in the age structure. (Federal Statistical Office Germany, 2010)

Figure 1: Age structure of the population of Germany (12th coordinated population projection)

[illustration not visible in this excerpt](Federal Statistical Office Germany, 2010)

It is also noticeable that five-person households are becoming more and rarer, while the number of one-person households grows continuously. As of today , there are an above-average number of one-person households, especially in cities. With a total fertility rate, of an average 1.38 children per woman, Germany has the lowest fertility rate in Europe. (Federal Statistical Office Germany, 2010) (Luke Harding, The Guardian, 2006)

According to provisional results of the Federal Statistical Office (Destatis), the number of persons in employment amounted to 39.8 million in January 2010, which was a 0.4% decrease compared with January 2009. Taking into account the European Union’s generally weak economy , the number of persons in employment can be still described as moderate. (Federal Statistical Office Germany, 2010) (see figure 2 in the appendix)

Concerning the national account of Germany, see figure 3 in the appendix.

2.2 General region information: the city of Berlin

Berlin has an area of 892 km². With 3.5 million citizens, it is the largest German city. Berlin is a real multicultural melting pot, with foreign nationals comprising more than 14.1% of the city’s populace. With more than 7.6 million visitors and 17.3 million overnight stays in 2008, (Andrea Bonder, Eurotopics, 2008) Berlin is one of the most visited cities in Europe and tourism provides a major source of income. The average monthly income in 2008 was $2,013 and the unemployment rate, which is one of the highest in Germany, amounted to 15.5% in 2008. According to the local government, Berlin noted a GDP of $1,141 billion in 2008. With 5,366 km public road network Berlin has one of the most compact public transport systems in Germany. In 2008, more than 1.4 million people used the public transport system, which is controlled by the Berlin Public Transport Company BVG (offers bus, subway and lines ) and Deutsche Bahn AG( offers S-Bahn service = city train). (Federal Office of Statistics-Berlin Brandenburg, 2008)

In the following charts, the road transport infrastructure is listed by length (in km) and the amount of passengers counted (in million s).

illustration not visible in this excerpt

(Federal Office of Statistics-Berlin Brandenburg, 2008)

The population development is like in the entire country a problem concerning the birth rate and demographical change. According to the Federal Office of Statistics, in Berlin Brandenburg 69.2% citizens are aged 15 – 65 and 18.8% are over 65 years of age.

Concerning the labour market, it is important to mention that Berlin is not an industrial city like most other German cities. The service sector, e.g. politics, tourism, hospitality and retailing, are the most common sources of income. (Federal Office of Statistics-Berlin Brandenburg, 2008)

3. Product / Service description: Broadband Wireless Internet Access

3.1 The current situation:

While access to Wi-Fi, is normal in the British public transport system, for German visitors this service is both new and desirable. Having done research on the homepages of several of the biggest public transport German companies, it is evident that there is no broad coverage of Wi-Fi available. The biggest supplier of public railroad transportation in Germany, Deutsche Bahn, offers Wi-Fi access on ICE trains and in DB Lounges. But this service is only available on 4 routes and in trains with the T-Mobile logo. Furthermore, Deutsche Bahn offers nationwide DB Hotspots but at just 25 rail stations. (Deutsche Bahn AG, 2010)

Taking the German capital Berlin as an example market, there have been several discussions about an area-wide free Wi-Fi coverage. But as the newspaper Berliner Morgenpost reported on January 12th 2010, the federal state government of Berlin cancelled the project. Government argued an area-wide implementation of Wi-Fi hotspots is not possible because the technical obstacles with traffic and street lights. In order to build up such a huge network of hotspots, millions of Euros would be required. In actuality, as the Berliner Morgenpost stated, the cancellation of this project was a political act instead of the result of a lack of investment opportunities. However, with an area-wide Wi-Fi network, Berlin would have been the first city in Germany to offer such a service to both citizens and visitors. (Jens Anker, Berliner Morgenpost, 2010)

[...]

Excerpt out of 19 pages

Details

Title
The Implementation of Free WIFI service in the German public transport system
Subtitle
E. g. The Berlin Public Transport Company - BVG -
College
Oxford Brookes University  (Business School)
Course
International Marketing
Grade
1,3
Author
Year
2010
Pages
19
Catalog Number
V203175
ISBN (eBook)
9783656298359
ISBN (Book)
9783656298427
File size
662 KB
Language
English
Tags
Public Transport, WiFi, International Marketing
Quote paper
B.A. Claudia Endter (Author), 2010, The Implementation of Free WIFI service in the German public transport system, Munich, GRIN Verlag, https://www.grin.com/document/203175

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