German unbundled DSL wholesale provider and cellco Telefónica has signed a deal with fellow DSL operator, Telecom Italia subsidiary HanseNet, for the provision of DSL infrastructure over several years. Since early 2006, HanseNet’s Alice broadband service has used Telefónica’s infrastructure to make its product more widely available. Telefonica expects that its DSL network will reach nearly 60% of German households and that it will have installed its equipment in 2,500 local exchanges by the middle of 2007 to enable third-party service providers to supply multimedia services based on ADSL2+ technology. Additionally, HanseNet will offer mobile telephony to its Alice customers through a deal with Telefónica to use the mobile infrastructure of O2 Germany, the mobile network operator which Telefónica acquired in 2005. This deal is unusual for the German market, as most MVNOs (mobile virtual network operators) allow customers to select the infrastructure provider. According to TeleGeography’s GlobalComms database, HanseNet ended 2006 with 929,000 broadband subscribers, while at the same time Telefónica Deutschland had 451,900 lines in service.