mmO2 to up network spending in Germany

22 Nov 2004

Over the next five years, O2 Germany will increase its capital expenditure in the country by up to EUR1.5 billion to expand its 2G and 3G networks, said CEO of mmO2 Peter Erskine on Friday. Mr Erskine went on to say that the continued 2G development is part of a strategy aimed at increasing O2 Germany’s profit margins towards a 30% target. The company currently provides 3G coverage via a roaming agreement with Deutsche Telekom’s T-Mobile International unit, but it intends to expand its own 3G network to raise profits. In the last quarter to 30 September 2004, O2 Germany signed up 351,000 new users to take its customer base to 6.67 million.