DT in talks over T-Systems; broadband contracts lengthening

8 Oct 2007

According to an article in today’s Frankfurter Allgemeine Zeitung, Deutsche Telekom is in ‘concrete negotiations’ with companies interested in acquiring the German giant’s T-Systems unit. CFO Karl-Gerhard Eick is reported as saying that talks are focusing on T-Systems’ Systems Integration division, which employs about 15,000 people. Previously, in April 2007, DT said it was seeking a partner for T-Systems.

In separate but related news, Financial Times Deutschland has reported that the proportion of the telco’s eight million broadband customers tied to long-term contracts of between twelve and 24 months has rocketed from 4% in the third quarter of 2006 to 73% currently. The newspaper goes on to cite sources saying that rival telco Arcor is planning to lower prices in response.

Germany, Deutsche Telekom (DT)