Deutsche Telekoms gigabit fibre strategy - 2011

Synopsis

Germany is one of the growing number of European countries which have reached a turning point regarding national broadband architecture. Until this year, the presiding focus was on squeezing greater capacity out of copper (DSL and cable), while relegating fibre to backhaul in most instances, with FttH being delivered in only a few urbanised areas. This was largely for reasons of cost, but it also resulted from a misguided appreciation of future consumer requirements for bandwidth, as also a misunderstanding of the national economic benefits of a fibre-based IP network. This has changed, and rapidly. Many areas with fibre infrastructure in place are providing a unique business case in favour of FttH, since the cost of installing the Digital Subscriber Line Access Multiplexer (DSLAMs) needed to upgrade the copper cable networks has become more expensive than using the existing optical network. The potential for using and extending the fibre infrastructure in these areas is substantial, and recent moves by the regulator as well as pragmatic commercial decisions by telcos are expediting Germany’s migration to FttH nationally.

Key developments:

Regulatory and commercial developments have improved the business case for FttH to be deployed nationally

Companies covered in this report include:

Deutsche Telekom

Financial information includes:

Deutsche Telekom domestic revenue; a report providing Deutsche Telekom financial information prepared by Indigo Equity Research

Table of Contents

• 1. Synopsis
• 2. DT’s changing focus
• 3. Early regulation – a false start
• 4. Open access regulation
• 5. DT’s FttC showing results
• 6. DT’s FttH future
• 7. Municipal involvement in fibre
• 8. Background
  • 8.1 Government Broadband Strategy
  • 8.2 Deutsche Telekom
    • 8.2.1 Structural review
    • 8.2.2 Strategy into 2011
    • 8.2.3 Performance in 2011
    • 8.2.4 Sales and acquisitions
    • Table 1 – Proportion of DSL subscribers by provider – 2001 - 2012
    • Table 2 – Deutsche Telekom domestic revenue – 2009 - 2011
    • Table 3 – Deutsche Telekom domestic subscribers by sector – 2008 - 2011
    • Table 4 – Deutsche Telekom unbundled lines – 2008 - 2011
    • Chart 1 – Deutsche Telekom domestic revenue – 2009 - 2011
    • Chart 2 – Deutsche Telekom domestic subscribers by sector – 2008 - 2011
    • Chart 3 – Deutsche Telekom unbundled lines – 2008 - 2011