- Telefónica expands position as fixed network provider
- Telefónica's evolution from conventional ULLs to Telekom's high-speed network
- Customers benefit from future-proof offerings for fixed-network and mobile services
- Risk sharing will enable faster network upgrades by Deutsche Telekom
Telefónica Deutschland and Deutsche Telekom intend to intensify their cooperation in the fixed network and have signed a memorandum of understanding to this end. Telefónica Deutschland wants to make more use of Deutsche Telekom's new high-speed infrastructure for fixed-network products in future. With this cooperation, Telefónica can achieve the transition from its own ADSL infrastructure to a future-proof NGA platform. To achieve this, Telefónica wants to use Deutsche Telekom's VDSL and vectoring wholesale products. The process will be realized in phases, with completion scheduled for 2019. With this cooperation, Deutsche Telekom will be able to share the risks of investment and accelerate further upgrades. The cooperation will be submitted to the Federal Network Agency and the Federal Cartel Office for approval. Its launch is planned for the coming year. "The future lies in high-speed Internet. In combination with our high-performance mobile data network, we will be able to accelerate our convergence strategy even more effectively. Our customers and partners will be the big winners. Through the cooperation, we can offer them the best fixed-network products in addition to mobile services," explains René Schuster , CEO at Telefónica Deutschland. "Deutsche Telekom is prepared to make massive investments in Germany's fixed-line network. But we need partners to share investment risks and accelerate the upgrade of high-performance networks," emphasizes Niek Jan van Damme , head of Telekom's business activities in Germany. At first, nothing will change for Telefónica's fixed-network customers. But in the near future, they will have the option of upgrading to high-speed connections based on Deutsche Telekom's infrastructure. Telekom's decision to deploy vectoring, a technology that gives it a competitive advantage over cable network operators in the fixed-network business, was a major factor for Telefónica. Deutsche Telekom will take Telefónica's needs into account in its upgrade plans. As a result of vectoring, households can enjoy download transmission speeds of up to 100 Mbit/s - that's double the present speed of VDSL. Telekom and Telefónica already cooperate within the framework of a VDSL 'contingent model', through which competitors can purchase a certain number of discounted VDSL lines from Deutsche Telekom. In another cooperation, the two companies had already agreed that Deutsche Telekom would connect Telefónica's mobile communications stations with fiber optics.
About Deutsche Telekom Deutsche Telekom is one of the world’s leading integrated telecommunications companies with more than 132 million mobile customers, over 32 million fixed-network lines and 17 million broadband lines (as of December 31, 2012). The Group provides fixed-network, mobile communications, Internet and IPTV products and services for consumers, and ICT solutions for business and corporate customers. Deutsche Telekom is present in some 50 countries and has 230,000 employees worldwide. The Group generated revenue of EUR 58.2 billion in the 2012 financial year - over half of it outside Germany (as of December 31, 2012). Telefónica Deutschland Telefónica Deutschland Holding AG, listed the Prime Standard segment at the Frankfurt Stock Exchange, and its wholly-owned operations subsidiary Telefónica Germany GmbH & Co. OHG, belongs to Telefónica Europe and is part of the Spanish telecommunications group Telefónica S.A. Under its O2 product brand, the company provides consumers and business customers in Germany with postpaid and prepaid mobile communications products, as well as innovative mobile data services based on GPRS, UMTS and LTE technology. Furthermore, as an integrated communications provider, it also provides DSL fixed network telephony and high-speed Internet. Telefónica Europe has more than 105 million mobile and fixed network customers in Spain, the UK, Ireland, the Czech Republic, Slovakia and Germany.