Deutsche Telekom fixed line decline to continue in 2008

2 Jan 2008

German incumbent Deutsche Telekom (DT) expects its fixed line revenues to keep falling in 2008 despite a strengthening broadband business partially offsetting the effect of dwindling landline voice calls. ‘We won’t be able completely to stop the fixed line sales decline next year but we are trying to achieve as soft a landing as possible,’ CEO Rene Obermann told German daily Boersen-Zeitung. He added that he expected DT to beat its 2007 target of winning at least 40% of new DSL broadband customers in Germany, where the incumbent faces stiff competition from rivals including United Internet and Freenet.

According to Obermann, DT’s new no-frills brand, Congstar, which was launched in July, had gained around 50,000 contract customers by the start of December 2007, and was winning at least a thousand new pre-paid mobile customers every day. He also revealed that DT had signed up its 100,000th IPTV customer in December. This service is available to over 17 million German households via the ADSL2+ network (reaching 750 cities) and the VDSL infrastructure (27 cities). As an incentive, the incumbent is offering free coverage of all Bundesliga football matches via IPTV from mid-January. A monthly fee was previously payable for this service.

Germany, Deutsche Telekom (DT)