According to t-mobile, Germany is the largest mobile phone market in Europe with 4 mobile network operators and 5 service providers competing in a market with over 90 million mobile connections (June 2007) of which over 40 million are 24 month post paid contracts. Industry experts estimate that the customer is switching his contract on average every 4 years due to several reasons resulting in more than 9 million post paid contracts sold each year. Overall the market is mature and contract volumes are stable although in the past 2 years the market has been impacted by discounting of prepaid MVNO (Mobile Virtual Network Operators) contracts. The primary driver of post paid contract sales is market churn.

There is strong competition amongst the network operators and service providers to grow and/or protect market share. As the post paid market is characterised by 24 month contracts and higher ARPU (Average Revenue Per User) it is a very important market for them. Contracts are sold directly via the network operators' and service providers’ own physical retail networks and direct sales channels, large retail chains, independent stores and independent direct marketing companies selling via print media (catalogues and press), the internet and TV advertising.