Light Reading
The carrier outlines an ambitious spending plan that includes LTE, fiber-to-the-curb and a new mystery box

DT's €30B Plan Wraps LTE With Vectoring

Craig Matsumoto
LR Mobile News Analysis
Craig Matsumoto
12/6/2012
50%
50%

Deutsche Telekom AG (NYSE: DT) outlined plans Thursday to blanket most of Germany with 4G LTE and fiber-to-the-curb (FTTC), driving capital expenditures up €9 billion to €10 billion, to a total of about €30 billion ($38.9 billion). The carrier also mentioned it hopes to deploy a hybrid box that combines LTE and vectoring, but it didn't give any details.

DT hopes to reach 85 percent of Germany's population with LTE and 65 percent with FTTC by 2016. LTE would come with download speeds of up to 150Mbit/s, while FTTC would be paired with VDSL at speeds of up to 100Mbit/s.

DT expects to spend about €6 billion ($7.78 billion) on the FTTC and vectoring piece.

Oh, and it's planning upgrades in the United States, too, where T-Mobile US Inc. and MetroPCS Inc. (NYSE: PCS), combined, will get $4 billion (note that that's in U.S. dollars) to expand the LTE network. That figure, and the €30 billion one, assume the MetroPCS deal closes in the first half of 2013, as expected.

Why this matters
Clearly, DT believes it has to spend more in order to escape the doldrums of shrinking revenues from traditional services. "Hesitation now means playing catch-up later," Chairman René Obermann said in a statement.

AT&T Inc. (NYSE: T) is likewise upping its spending next year, adding $3 billion to bring capex to $22 billion. This is all good news for the equipment vendors, which are experiencing a lackluster second half of the year in the U.S. and are having a particularly dismal time in Europe.

This is also a good sign for vectoring technology. "Germany has been a bit of a catalyst market" for vectoring, says Teresa Mastrangelo, principal analyst with Broadbandtrends LLC . "If they get some regulatory relief, and they seem to believe they're going to get it, then they're going to deploy it," after which other European countries might follow suit, she says.

Then there's that LTE/vectoring hybrid system, which is particularly intriguing because DT gave no explanation for it. "My first thought was: Who would the vendor be for something like that, and how exactly would DT use it?" Mastrangelo says.

The box appears to be for the customer premises, based on a picture in a DT presentation online, she says.

For more



— Craig Matsumoto, Managing Editor, Light Reading

(0)  | 
Comment  | 
Print  | 
Newest First  |  Oldest First  |  Threaded View
Flash Poll
From The Founder
It's clear to me that the communications industry is divided into two types of people, and only one is living in the real world.
LRTV Documentaries
Optical Is Hot in 2015

1|23|15   |   01:56   |   (2) comments


Optical comms technology underpins the whole communications sector and there are some really hot trends set for 2015.
LRTV Custom TV
Policy Control in the Fast Lane

1|22|15   |   2:57   |   (0) comments


What's making policy control strategic in 2015 and beyond? Amdocs talks with Heavy Reading's Graham Finnie about the key factors driving change in the data services landscape. Find out what his policy management research reveals about the road ahead for policy control – and sign up for ...
LRTV Documentaries
Highlights From the 2020 Vision Executive Summit

1|21|15   |   4:33   |   (2) comments


In December 2014, Light Reading brought together telecom executives in Reykjavik, Iceland to discuss their vision for high-capacity networks through the end of the decade. The intimate, interactive meeting was set against the backdrop of Iceland's spectacular natural beauty. As one of the event's founding sponsors, Cisco's Doug Webster shared his company's ...
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Harmonic, Helping Carriers Accelerate 4K Video Deployment with Huawei

1|20|15   |   5:42   |   (1) comment


At IBC, Peter Alexander, Senior Vice President & CMO at Harmonic, speaks about the growing interest in pay-TV service and its branching into multiple devices.
LRTV Huawei Video Resource Center
Sony Marketing Director Olivier Bovis Discusses the Outlook for 4K and Cooperation With Huawei at IBC 2014

1|20|15   |   6:50   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Huawei Pay-TV Partner Envivio, Helping Carriers Accelerate 4K Video Deployment

1|20|15   |   2:57   |   (0) comments


At IBC, Olivier Bovis, Marketing Director of Sony, speaks about the coming of the 4K era.
LRTV Huawei Video Resource Center
Pay-TV's Networked Future

1|20|15   |   6:29   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about the future of the pay-TV industry and its transition.
LRTV Huawei Video Resource Center
Jeff Heynen: Distributed Access Will Help MSOs Compete in the Future

1|20|15   |   2:26   |   (0) comments


At IBC, Jeff Heynen, Principal Analyst at Infonetics, speaks about moving to distributed access and the future trend of cable business.
LRTV Interviews
Cisco Talks Transformation

1|20|15   |   13:02   |   (0) comments


In December 2014, Steve Saunders sat down with Cisco VP of Products & Solutions Marketing Doug Webster at Light Reading's 2020 Vision executive summit in Reykjavik, Iceland. They spoke about Cisco's approach to network virtualization as well as how service providers can begin to monetize high-capacity networks through the end of the decade.
LRTV Interviews
Bob Wilson, Arsenal Legend: The Light Reading Interview

1|16|15   |   35:36   |   (3) comments


Arsenal goalkeeping legend Bob Wilson was Light Reading's guest interviewee at the 2020 Vision Executive Summit in December. See what the former soccer star and sports broadcaster had to say when he took to the stage in Iceland.
LRTV Custom TV
What MEF Third Network Initiative Means for SDN & NFV

1|14|15   |   6:13   |   (0) comments


Vitesse Semiconductor CTO Martin Nuss discusses the importance of the MEF Third Network initiative and why it's good news for SDN/NFV industry initiatives.
LRTV Huawei Video Resource Center
Frank Miller: Distributed Solutions are the Best Build for the Future - Part II

1|9|15   |   2:46   |   (0) comments


At SCTE, Frank Miller, Global CTO of MSO at Huawei, speaks about Cable 2.0 and its innovative future.
Upcoming Live Events
February 5, 2015, Washington, DC
February 19, 2015, The Fairmont San Jose, San Jose, CA
March 17, 2015, The Cable Center, Denver, CO
April 14, 2015, The Westin Times Square, New York City, NY
May 12, 2015, Grand Hyatt, Denver, CO
May 13-14, 2015, The Westin Peachtree, Atlanta, GA
June 9-10, 2015, Chicago, IL
September 9-10, 2015, The Westin Galleria Dallas, Dallas, TX
September 29-30, 2015, The Westin Grand Müchen, Munich, Germany
November 11-12, 2015, The Westin Peachtree Plaza, Atlanta, GA
December 1, 2015, The Westin Times Square, New York City
December 2-3, 2015, The Westin Times Square, New York City
Infographics
Hot Topics
BlackBerry Wants Net Neutrality Protection -- That's Just Sad
Mitch Wagner, West Coast Bureau Chief, Light Reading, 1/22/2015
FiOS Picks Up Pace Again
Alan Breznick, Cable/Video Practice Leader, 1/22/2015
Verizon Ready for Google MVNO Challenge
Dan Jones, Mobile Editor, 1/22/2015
Indiana Carrier Takes Fiber to the Farm
Jason Meyers, Senior Editor, Gigabit Cities/IoT, 1/22/2015
The New Internet Space Race: Google's Final Frontier?
Dan Jones, Mobile Editor, 1/21/2015
Like Us on Facebook
Twitter Feed
Webinar Archive