Deutsche Telekom invests in broad range of options for connectivity and the gigabit society

Tuesday 1 March 2011 | 16:15 CET | Market Commentary

Deutsche Telekom has made a number of announcements on connectivity:

  • FTTH: The company will roll out fibre to parts of ten cities this year, with the aim of 160,000 homes passed by the end of 2011. Over time the network will offer speeds of 1Gbps download and 0.5Gbps upload. In October 2010, DT said it aimed to have 10 percent of all homes in Germany connected to fibre within five years (a target it previously set for 2012). Pilot projects have started already in two cities, and in Dresden a home has been connected to a 1Gbps line.
  • VDSL: Available in 50 cities, with a maximum speed of 50Mbps. In rural areas, DT connected 800 towns (360,000 homes passed) in 2010 with ADSL at up to 16Mbps, supported by cooperation with local authorities. Additional towns will be covered this year, equal to anther 600,000 homes passed, with the choice this time for VDSL.
  • HSPA/LTE: The HSPA network currently has coverage of 83 percent. The maximum capacity will be doubled this year to 42Mbps, and DT will make Cologne a LTE city with 100 Mbps. The focus there is on business laptop users. HSPA/LTE in the 800 MHz band will be rolled out in rural areas, targeting 1,500 agglomerations in 2011. This is in line with the German government’s policy, which has been using the 800MHz band and local municipalities in an attempt to reduce ‘black spots’. Vodafone is also participating in this, with its ‘white spots’ strategy.
  • WiFi: The Hotspot WLAN service is expanding, to Lufthansa flights, DB trains, phone booths and other locations. The number of hotspots will grow this year from 8,000 to 11,000. Wi-Fi is offered free to many fixed and mobile customers, while non-subscribers pay EUR 5 per day or EUR 20 for ten days.

Deutsche Telekom is fulfilling its claim to a clear focus on connectivity (see our interview ‘Deutsche Telekom sees more Wi-Fi deals soon’). The initiatives fit the broader vision of a 'Gigabit society'. While cable is providing tough competition with the roll-out of Docsis 3.0, the question is still how will demand for high-bandwidth services develop. DT has chosen for a large number of different number networks, offering it not only broad coverage but also deep bandwidth. The weak points of the strategy are the slow tempo and the fact that high bandwidths for the moment are limited to large cities. Building a gigabit network will clearly take some time, money and building capacity.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

::: add a comment