Germany Telecommunications Report Q2 2016
BMI View: The Federal Network Agency (FNA) of Germany has approved local telecoms operatorDeutsche Telekom's EUR1bn (USD1.1bn) plan to upgrade its copper lines with vectoring technology. Theapproval of the plan is conditional on Deutsche Telekom giving its competitors access to the technology, asvectoring can only be installed by one operator in each street cabinet. Deutsche Telekom has the option todeny access in areas where alternative networks are available already. The operator plans to deploy VDSLVectoring to an additional 5.9mn homes in the country by 2018. This is in line with the government's overalldigitalisation strategy that strives to make broadband widely available in the country. At the same time,more and more free hot spots are becoming available in shopping areas and touristic areas, offeringalternatives to the constant use of limited mobile data plans.
Latest Updates And Industry Developments
Mobile subscriptions jumped by 769,000 total between Q414 and Q315, following a strong third quarterwith one million net additions, after having witnessing a significant decline in the aftermath of the O2purchase of E-Plus due to inactive SIM deactivation in 2014.
ARPU remains very low in Germany despite the premium strategy, with figures between EUR10.9 andEUR15.5 for the three main operators in Q315.
The fixed market will develop though convergence, led by Deutsche Telekom's move to IP services,VDSL and fibre, IPTV and quad-play bundles.
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