Report: Vodafone in talks to ramp up fixed-mobile services in Germany

Report: Vodafone in talks to ramp up fixed-mobile services in Germany

05 APR 2013

Vodafone is reportedly in discussions with Deutsche Telekom to enable the operator to complement its mobile service in Germany with high-speed broadband and TV services.

The Reuters report says talks are about a wholesale agreement allowing Vodafone to access Deutsche Telekom’s high-speed VDSL network.

Vodafone, under investor pressure to step up its efforts in the “quad-play” space – and so compete better against fixed-line incumbents with mobile operations, as well as cable operators with MVNO deals – was reported earlier to be weighing up a EUR10 billion bid for Kabel Deutschland, a German cable operator.

An unnamed source cited in the report said discussions have been slow, but Vodafone – said the source – doesn’t rule out asking the regulator for help if a mutually agreeable price can’t be agreed.

Frustrated by its attempts to gain timely wholesale access to Telefonica’s fibre-optic network in Spain, Vodafone and France Telecom are jointly investing EUR1 billion in rolling out a fibre-to-the-home network. The aim is to reach 800,000 households and workplaces by March 2014, extending to six million by September 2017.

Vodafone already owns fixed-line assets in Germany through its Arcor subsidiary, but its German fixed-line unit uses older and slower DSL technology than Deutsche Telekom’s.

There are arguably strong business case incentives for traditional standalone mobile operators – like Vodafone – to get more heavily involved in quad-play.

Taking into account that fibre access consumers tend to be in the higher ARPU bracket – and assuming lower churn rates from fixed and mobile bundling – Bernstein Research works out that operators could discount their quad-play packages by around 25 per cent to the standalone ARPU and still see an incremental customer lifetime value.


Ken Wieland

Ken has been part of the MWC Mobile World Daily editorial team for the last three years, and is now contributing regularly to Mobile World Live. He has been a telecoms journalist for over 15 years, which includes eight...More

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