Video services

DT Misses IPTV Target

9:15 AM -- Deutsche Telekom AG (NYSE: DT) has its work cut out in 2008.

Like many national operators, the German incumbent is banking on revenues from value-added broadband services, such as IPTV, to make up for the decline in fixed voice revenues.

But, in common with other European carriers, DT's IPTV launch hasn't gone to plan.

In August, the German incumbent revamped its IPTV offering, which it launched in October 2006, to help fuel uptake, and by the end of September 50,000 of its broadband customers had ordered the telco TV service, still some way short of the carrier's year-end target of 200,000 IPTV customers. (See DT Cuts Its IPTV Price and Euro IPTV Update.)

A DT spokesman confirms the carrier has received its 100,000th IPTV service order, though he says the year-end number for 2007 will not be revealed until the end of February, when the operator announces its fourth-quarter financials.

It'll be interesting to see if DT retains its long-term target, set in March 2007, of 1.5 million German IPTV subscribers by 2010. (See DT Plans M&A, IPTV Push.)

Deutsche Telekom had 8.5 million domestic retail broadband customers at the end of September, so there's plenty of opportunity for growth.

IPTV uptake is not DT's only domestic broadband concern. Following complaints from the likes of Telefónica Deutschland GmbH , Germany's Federal Network Agency has introduced new rules regarding competitive access to the incumbent's local loop. (See Agency Rules on Local Loop.)

The new rules are designed to make it easier, and quicker, for DT's rivals to gain access to the local loop. They also introduce the prospect of financial penalties for DT if the national carrier is deemed to be dragging its heels on providing competitive operators with access lines.

— Ray Le Maistre, International News Editor, Light Reading

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