Tuesday, January 30, 2007

Deutsche Telekom Sees Increased Competition, Continues VDSL Push

Despite increased competition in its home market, Deutsche Telekom intends to establish itself at the top of the international telecommunications market by focusing on the customer, said company executives at a press event in Berlin. This consumer push includes opening 200 new retail stores and adding 1,500 sales employees. Deutsche Telekom is increasing its focus on the broadband opportunity while de-emphasizing conventional fixed line telephony, where line losses continue.

Deutsche Telekom confirmed that it is continuing the rollout of its new VDSL network in 50 cities. However, the company warned that demand for its T-Home service will develop more slowly than originally anticipated. As a result, Deutsche Telekom anticipates that the adjusted EBITDA of the strategic business area Broadband/Fixed Network will be reduced by EUR 0.8 billion in 2007, compared to the previous internal planning.

In mobile communications, Deutsche Telekom now has over 100 million customers, with the fastest growth occurring at T-Mobile USA, which added over 900,000 subscribers in Q4.

"Service and a service mentality are key components to advance our business, in particular in Germany. Step by step, we intend to make Deutsche Telekom the standard for service in the industry," stated René Obermann, Deutsche Telekom's CEO.