HanseNet freezes DSL expansion plans; blames problems on incumbent

7 Dec 2005

Hamburg-based broadband provider HanseNet has put a stop to plans to expand its DSL infrastructure. The telco had aimed to roll out services to eastern German cities such as Leipzig, Dresden, Schwerin , Magdeburg and Halle an der Saale in 2006, but has cancelled the project, claiming that its decision is based on an increased investment risk caused by incumbent Deutsche Telekom’s refusal to open up its planned national high speed fibre-optic network to competitors. A HanseNet official reported that DSL marketing would continue in areas in which infrastructure rollouts had recently been completed, including Essen, Dortmund, Karlsruhe and Rostock.

The city-carrier’s transport network spans approximately 1,000 kilometres covering Hamburg and the surrounding areas; its licence covers a territory with a population of more than three million people. In mid-2005 it expanded its reach through the signing of a national DSL resale agreement. It also rolled out services to Munich, Berlin, Stuttgart, Frankfurt and Lübeck. The company offers internet services over fibre-optic infrastructure under the brand name ‘Alice’ and claimed 377,000 users of its telephony and internet services at the end of June 2005. HanseNet is the German subsidiary of Telecom Italia.