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DT unveils growth strategy, plans EUR10bn investment in Germany

18 Mar 2010

German telecoms giant Deutsche Telekom (DT) has announced it is aiming to restructure its business and drive up revenue from growth areas during 2010, through investments in intelligent networks and its portfolio of IT, internet and network services. In Germany the group plans to invest around EUR10 billion (USD13.8 billion) between 2010 and 2012 in fibre-optics, new mobile communications technologies, and IT processes to give customers more speed and new products. By 2012 the company aims to supply up to 10%, around four million, of all households in Germany via fibre. In addition, the mobile network will be upgraded with HSPA+ and – if the company is successful in the upcoming mobile frequency auction – Long Term Evolution (LTE). DT has also revealed it intends to expand its footprint in the TV business in Europe and become the pay-TV market leader in Germany. Elsewhere, T-Mobile USA is rolling out its ‘US Network Drive’ with which it will be able to supply HSPA+ to around 185 million residents by the end of 2010. Furthermore, by 2012 T-Mobile USA intends to have cut its competitors’ lead in terms of monthly data ARPU by 60%, while aiming for 50% of handsets on its network to be smartphones.

To achieve its targets, DT is focusing on five strategic growth areas – mobile internet, internet offerings, ‘connected home’, T-Systems, and intelligent network services for industries such as healthcare and energy – in which it hopes to lift revenues to a total of almost EUR30 billion by 2015. For example, revenue from mobile data traffic is expected to increase from just under EUR4 billion in 2009 to around EUR6 billion in 2012 and approximately EUR10 billion in 2015.

Germany, Deutsche Telekom (DT), T-Mobile US, Telekom Deutschland

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