04.11.2014

eco Study Shows: Great Potential of Wi-Fi in Germany So Far Untapped

  • New eco study shows status quo and potential for use of public Wi-Fi in international comparison
  • Great mobility potential so far untapped: From around one million public hotspots in Germany, only 15,000 open and freely accessible
  • Create legal certainty for Wi-Fi operators, avoid unnecessary legislative intervention

Germany currently has around one million publically accessible Wi-Fi hotspots at its disposal. Of these, merely 15,000 are in fact open and freely accessible hotspots that users can make use of without registration or identification. This the finding of an investigation carried out by eco – Association of the German Internet Industry e. V. into the status quo and the technical possibilities for public Wi-Fi in Germany. One reason for the conspicuously low prevalence of public Wi-Fi access compared to other developed countries is the legal uncertainty and the demands of a third-party liability framework seen almost nowhere else in the world, which prevents many small business people and private individuals from making their Wi-Fi access freely accessible and publically available for fear of being held responsible  for the infringements of third parties. eco therefore endorses the German Federal Government’s intention, announced in the Digital Agenda, to improve the legal certainty for Wi-Fi operators.

Great mobility potential so far untapped: From around one million public hotspots in Germany, only 15,000 open and freely accessible

The use of wireless technologies like open Wi-Fi networks holds enormous economic and social chances for the development of innovative communication and information technologies, as well as for the services based on them. At the same time, the use of wireless technologies can make an important contribution to the supply of broadband Internet access, such as the provisioning of industrial areas or rural communities, and to the guarantee of a basic digital supply for the general public. Despite these positive effects, there are still very few open Wi-Fi hotspots in Germany, in comparison to other countries.  From a total of around one million public hotspots available in Germany, a mere 15,000 are truly unrestricted and open hotspots. “This means we are leaving the great potential for mobile communication untapped,” says Klaus Landefeld, eco Director of Infrastructure and Networks. “It is just as absurd as if, 30 years ago, 99 percent of the telephone cells had been restricted, so that they were unusable for the general public.”

Wi-Fi has been one of the greatest technological success stories over the 15 years of its existence. At the end of 2013, for the first time, there were more Wi-Fi-capable devices worldwide than people, at around 7.5 billion – and the trend is unbroken. In 2014 alone, more than 1.9 billion new units will be brought onto the market, and by the end of 2017 the 20-billion mark will have been exceeded worldwide.

In Germany, as one of the leading developed nations, the number of Wi-Fi-capable devices is naturally high and, together with the devices for the mobile data network, forms the basis for all thoughts on mobile use. The adoption rate in Germany, of approximately three devices per person, is significantly higher than the worldwide average of around 1.2 devices per person.

In the years 2010 to 2014 alone, there were more smartphones sold in Germany than there are residents. If the current development continues, it is expected that by 2020 there will be around 400 million active Wi-Fi-capable devices in Germany.

Create legal certainty for Wi-Fi operators, avoid unnecessary legislative intervention

One reason for the conspicuously low prevalence of freely accessible Wi-Fi hotspots compared to other developed countries is the legal uncertainty and the considerable risks of liability triggered by the German framework of third-party liability, a special construct seen almost nowhere else in the world.

eco therefore endorses the announcement of the German Federal Government of their desire to exploit the potential of local wireless networks for Internet access in the public sphere. An improvement in legal certainty for Wi-Fi operators can be an important signal for the increased use of such wireless technologies.

From the perspective of eco, the scope of the Telemedia Act (TMG) already includes the provision of Internet access via Wi-Fi technology. To encourage the spread of publically accessible Wi-Fi, the legislator should therefore clarify at the federal level that Wi-Fi operators are service providers in the sense of the TMG and are thus subject to liability privileges. Along with a legislative clarification of the scope of § 8 TMG, the legislator should take into account the further need for action in the inclusion of injunctive relief and with regard to the avoidance of third-party liability.

However, eco warns against bringing the established liability arrangements in the TMG out of balance through unnecessary and un-thought-out legislative intervention. There is the danger that a small gain in legal certainty for Wi-Fi operators could result in a great loss of the same for all Internet service providers. Therefore, changes in this sensitive area of the Internet industry should only be undertaken with careful consideration and a comprehensive estimation of the legal consequences. The suggested clarification for Wi-Fi operators must also not be thwarted through the proviso of the fulfilling of extra requirements and conditions.

Picture: iStock_WLAN_© Hocus Focus Studio