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PRODUCER PRICE INDEX FOR WIRED, WIRELESS, SATELLITE AND TELECOMMUNICATIONS SERVICES IN GERMANY

PRODUCER PRICE INDEX FOR WIRED, WIRELESS, SATELLITE AND TELECOMMUNICATIONS SERVICES IN GERMANY. 2008 MEETING OF VOORBURG GROUP. DEFINITION OF THE SECTOR Telecommunications comprises transmission of. voice, data, text, sound and video content, without being involved in its creation.

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PRODUCER PRICE INDEX FOR WIRED, WIRELESS, SATELLITE AND TELECOMMUNICATIONS SERVICES IN GERMANY

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  1. PRODUCER PRICE INDEX FOR WIRED, WIRELESS, SATELLITE AND TELECOMMUNICATIONS SERVICES IN GERMANY 2008 MEETING OF VOORBURG GROUP

  2. DEFINITION OF THE SECTORTelecommunications comprises transmission of • voice, data, text, sound and video • content, without being involved in its creation

  3. Structure of the German market • 63.6 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

  4. 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

  5. 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

  6. 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

  7. 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: • obtaining the weighting data for CPI and SPPI • developing the current surveys for SPPI • The existence of a legal obligation made work much easier than in a previous pilot phase 2003/2004

  8. Cooperation with the regulator • 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

  9. Business to Business- and Business to All-approach • SPPI-concepts: • 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 business to all business business to

  10. Business to Business- or Business to All-approach According to recent EU recommendations Germany follows the Business to All-approach

  11. 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

  12. Collection of information • Unit value approach • Units observed are: • - Turnover and • - number of .. (e.g. participants) or • - minutes of telephone calls or • - GByte of data transmission

  13. Survey programme • Division into two categories: • - Fixed line telephony and internet use • - mobile telephony

  14. Main activities observed • Fixed 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)

  15. Main activities observed • Mobile 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)

  16. 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

  17. Burden for companies • - Specific questionnaires for companies according to their activities. • - These questionnaires form a subset of the complete survey programme

  18. 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)

  19. 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

  20. Discussion ?! Roemer Peter, Destatis Germany Telefone: ++49 (0) 611 75-2332 E-Mail: peter.roemer@destatis.de

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