Deutsche Telekom and Telefónica Deutschland/O2 are to extend their long-standing fixed line network collaboration and have agreed a contract for the next ten years.
Deutsche Telekom will continue to grant its competitor and cooperation partner Telefónica access to its broadband network. For the first time, Deutsche Telekom has signed a long-term cooperation agreement for the use of its fiber-optic network including FTTH with a competitor.
Since 2013, Telefónica has been purchasing fiber-optic network-based copper lines (VDSL/vectoring) from Deutsche Telekom as part of a contingent contract that Telefónica then markets to its end customers. And both companies have now agreed an extension and expansion of the cooperation. Under the agreement, Deutsche Telekom will, for the first time, provide its partner with high speed fiber-optic lines (FTTH) with download speeds of up to 1Gbps in addition to the existing VSDL/vectoring lines. As a result, Telefónica Deutschland will also be able to offer o2 customers a proportion of its broadband offerings on the basis of the Deutsche Telekom network in the coming years. This is the first time that a different company has decided to use Deutsche Telekom’s FTTH network.
The contingent model enables Deutsche Telekom to ensure the long-term utilization of its networks while Telefónica has secured access to Deutsche Telekom’s network at favorable conditions. Deutsche Telekom plans to significantly invest in the buildout of its FTTH networks and the long-term yield from this business is a significant basis for its plans.
The cooperation is a long-term one and will apply throughout Germany. The VDSL and FTTH lines from Deutsche Telekom are wholesale products. Using Deutsche Telekom’s network, Telefónica Deutschland can provide its O2 customers with its own products. Both parties will submit the contract to the Federal Network Agency over the coming days.
Telekom Deutschland CEO Dirk Wössner
This is a pioneering deal for the buildout of the fiber-optic infrastructure in Germany for the next decade, based on a voluntary commercial agreement between two large market players from which many people and companies in Germany will benefit. Deutsche Telekom stands for open networks and cooperations.
Markus Haas, CEO of Telefónica Germany / O2
In future, we will be able to offer our O2 customers access to the fiber optic network, especially in large cities. On this basis we can offer our customers first-class convergent products.
