Thursday, May 17, 2018

Deutsche Telekom pursues “billions for millions” broadband strategy

Deutsche Telekom invested 5.4 billion euros on networks and new data centers in Germany in the last year, he said.

Speaking at Deutsche Telekom's shareholders' meeting in Bonn, CEO Tim Höttges said the company is pursuing a strategy of “billions for millions,” seeking to ensure that broadband coverage is built out as quickly and as comprehensively as possible. The targets for the next stage of Deutsche Telekom's broadband strategy are to provide 26 million households with up to 100 Mbps, and 15 million households with as much as 250 Mbps, by the end of the year.

Deutsche Telekom holds a 40 percent market share in the broadband market in Germany.

Höttges also called for increased competition in Germany, saying that other companies must also invest in new networks, instead of simply criticizing or “staying cozy in regulated markets.” Höttges said that there should be no more regulation for “new fiber-optic lines,” in order to achieve the goal of nationwide access to gigabit speeds faster.” We are pleased to have competition, at any rate, because if it is fair, then it is good for the customer,” said Höttges.

In 2017, Deutsche Telekom's revenue increased by 2.5 percent year-on-year to 74.9 billion euros, with adjusted EBITDA rising by 3.8 percent to 22.2 billion euros. Free cash flow was up 11.3 percent to 5.5 billion euros.

Regarding the planned merger with Sprint, Höttges said the deal would create better networks, new jobs, increased growth, and stronger competition in the United States. “I personally have spent seven years working to make this merger happen. There have been many ups and downs, but there is no opportunity without risks – risks that must be taken if we are to open up new horizons. I am convinced that this business combination is the best thing for the U.S. market and for Deutsche Telekom – and that goes for the long term,” said Tim Höttges.

Deutsche Telekom will further discuss its medium-term planning at its Capital Markets Day on May 24/25.

https://www.telekom.com/en/investor-relations/share/shareholders--meeting-

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