Deutsche Telekom Strikes VDSL Deals

Deutsche Telekom reaches agreement with 1&1 and Vodafone on VDSL wholesale offer

July 10, 2009

2 Min Read

BERLIN -- United Internet (1&1) and Vodafone will in future be able to offer their customers VDSL lines over Deutsche Telekom's network. A contract has already been signed with Vodafone, while agreement has been reached with 1&1. The service is due to be launched over the next few months. 1&1 and Vodafone will be the first competitors to use the wholesale service for VDSL Double Play, which will offer customers transmission speeds of up to 50 Mbit/s while surfing the Internet. Deutsche Telekom has already expanded its VDSL network in 50 German towns and cities.

The new wholesale offer comes with an integrated 'success factor' whereby the wholesale price will be reduced depending on how many customers the competitors and Deutsche Telekom manage to attract. The agreed monthly entry price is EUR 25.36 with a 48-month contract term and EUR 26.28 with a 12-month contract term. "Market-based solutions are feasible without the regulator having to intervene, something this agreement clearly demonstrates. The compelling price shows we've met our competitors more than halfway", stresses Timotheus Höttges, Chief Financial Officer at Deutsche Telekom.

In March, Deutsche Telekom had announced it would be opening up its VDSL network to competitors voluntarily and without regulatory pressure. At the same time, the Group is also pushing forward with the further expansion of its high-speed network: Deutsche Telekom already has plans in place to expand the network in 13 German towns and cities by teaming up with competitors such as Vodafone, EWE, M-Net and NetAachen. Further discussions are also underway. Höttges: "No new infrastructure will be built simply as a result of regulating network access. What Germany now needs is the courage to deregulate; more freedom will help further boost growth in the broadband market."

Deutsche Telekom AG (NYSE: DT)

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