Deutsche Telekom launches discount internet brand

18 Jul 2007

German incumbent Deutsche Telekom (DT) has launched its Congstar brand under which it will offer discount wireless telephony and broadband internet, in an attempt to claw back the market share it has lost in recent years. The low-cost strategy mirrors that of rivals such as cellco E-Plus and ISP United Internet, which have had success with their own discount brands such as Simyo, Base and 1&1 Internet. ‘With Congstar…Deutsche Telekom is taking up the fight against the providers in the discount segment of the telecommunications market,’ said CEO Rene Obermann. Congstar customers are not required to sign minimum contracts and can cancel at the end of any month with two weeks’ notice. The deal includes a broadband internet connection for around EUR15 (USD20.67) a month, excluding the cost of a phone line. In addition, customers have the option to add different packages for fixed line and wireless telephony at between EUR5 and EUR20 a month each. For making unlimited calls to fixed line and all wireless networks in Germany, Congstar offers a EUR85 a month flat rate, undercutting the competition; for example a similar bundle is available from E-Plus under its Base brand for EUR90 a month. DT has said it expects Congstar to achieve annual revenues of EUR1 billion (USD1.38 billion) by 2010.

Germany, Deutsche Telekom (DT)