Vodafone inks VDSL network deal with DT

16 May 2013

Vodafone Germany has announced the signing of a next generation network access agreement with the country’s incumbent fixed line operator Deutsche Telekom (DT), which operates in its domestic market under the brand Telekom Deutschland. Vodafone will initially use DT’s VDSL network under a bespoke ‘Layer 3’ (IP-based) bitstream agreement, which will allow the UK-owned operator to offer its customers connection speeds of up to 50Mbps (rising to 100Mbps once DT has deployed vectoring technology), as well as Vodafone’s own on-demand and broadcast IPTV services. Furthermore, the two companies have also agreed that a new, more advanced ‘Layer 2’ (Ethernet-based) bitstream product will be made available by DT to Vodafone from 2016, which will allow a greater level of differentiation and control over the design and delivery of the services that Vodafone offers to consumers and enterprise customers. TeleGeography’s GlobalComms Database notes that DT plans to invest around EUR6 billion (USD7.7 billion) in the rollout of a high speed fixed broadband network over the next few years, including the introduction of vectoring technology, which will enable households to access download speeds of up to 100Mbps. Around 24 million homes in Germany are expected to benefit from the upgrade. In a separate press release, DT said the agreement was reached under its ‘contingent model’, which allows competitors to obtain lines from the Bonn-based telco at reduced charges in return for which they undertake to purchase a certain volume.

Vodafone Group chief executive for Northern and Central Europe, Philipp Humm, said: ‘Our agreement with DT will greatly enhance our ability to offer our German customers a range of competitive, high speed broadband and TV services, in addition to our industry-leading mobile services, in line with our broader Europe-wide strategy.’ The agreement is subject to approval by the Federal Network Agency and Federal Cartel Office.