(and all this is before the final hassle with filing taxes every month/year... errors here land you in court faster than you can see. This year, for my freelancer business I clicked one wrong checkbox (the numbers where right, I paid the right amount of taxes, I just made a little mistake) so they instantly visited me one morning to my surprise to check my books.
If you need a business friendly environment, go elsewhere.
Telecommunication in Germany has always been notoriously ridiculous but keep in mind that solving problems is what an entrepreneur's job description is all about. So, Deutsche Telekom sucks. I had pretty much the same problem when setting up a company about 7 years ago. We ended up using a combination of the neighbouring company's Internet connection and mobile Internet connectivity (mind you, this was pre-LTE and ridiculously slow at times and we still made do) for about 3 months.
There have always been complaints about rampant bureaucracy that's hampering startups in Germany. While those are justified to some extent they also most of the times seem to come from people who don't really want to start a company anyway but are looking for a good reason not to.
I'm still getting set up, but so far it seems doable. And cost of living and lifestyle are much better here than other places I've been.