T-Online seeking growth in France and Spain

25 Nov 2004

The German-owned internet service provider T-Online International is planning to invest between EUR800 million and EUR1 billion over the next three years to boost its presence in France and Spain. The Deutsche Telekom subsidiary says it wants to become the first or second largest ISP in both these countries, with a market share of 15% to 20%. It says the growth will be organic and will come partly from a push of DSL broadband products; the firm is introducing packages of DSL connections, hardware and internet access in the first half of next year. T-Online wants foreign operations to be contributing 20% of group sales within ten years, up from around 15% now.

In its domestic market, meanwhile, T-Online says its marketing focus next year will turn increasingly towards combined entertainment packages of video-on-demand, music downloads and gaming. It is also planning the introduction of voice-over-IP internet telephony services by mid-2005. T-Online warned earlier this week that earnings may fall next year as it pushes its new range of services.

France, Germany, Spain, T-Online