Corporate | 20 December 2013 16:11

Telefónica Deutschland Holding AG: Telefónica Deutschland and Telekom have concluded a binding agreement for Fixed Network cooperation

Telefónica Deutschland Holding AG / Key word(s): Contract

20.12.2013 / 16:11

20 December 2013

Telefónica Deutschland and Telekom have concluded a binding agreement for Fixed Network cooperation

– The German Federal Network Agency (BNetzA) confirmed compliance with the German Telecommunications Act and terminated the proceeding accordingly in a draft decision

– Draft decision will be notified with EU commission with final approval expected during first half of 2014

– Telefónica extends its position as fixed network provider and gets access to highspeed internet of Telekom with rates up to 100 Megabit per second

– Risk-sharing enables faster network expansion for Telekom

MUNICH. After the German Federal Network Agency (BNetzA) has published a conforming draft decision on December 18th Telefónica Deutschland and Telekom today have concluded a binding agreement to expand their cooperation in high speed fixed line network. The draft decision of BNetzA is now subject to a national consultation and will then be notified with the European Commission. A final decision is expected during the first half of 2014

As already announced in May this year, with the cooperation Telefónica is able to realize the transformation from a fixed access infrastructure provider to becoming a high-speed internet provider in the German fixed-net market based on Telekom’s NGA platform with VDSL- and vectoring products. ‘We very much appreciate the decision of BNetzA. This is an important step in our convergence strategy as we will be able to offer our customers an integrated and future-proof range of fixed net and mobile products’, says René Schuster, CEO Telefónica Deutschland. ‘Customers want high-speed internet wherever they are.’ Crucial in this context is vectoring. Telekom will roll out this technology and consider the needs of Telefónica. Telekom commits a roll-out for a significant increase of NGA coverage and speed in exchange for the commitment of Telefónica to deliver a crucial degree of capacity utilization on Telekom’s NGA-platform.

At the beginning, nothing will change for fixed line customers of Telefónica. But if they wish, they will be able to switch to a high-speed connection based on the infrastructure of Telekom. Customers will benefit from download rates up to 100 Megabit per second which is twice as much as the previous speed via VDSL. First offers will be available from mid of 2014. The smooth and cost effective migration process will be carried out in steps over the coming years with a final completion in 2019.

This agreement is an extension of the already existing cooperation within the VDSL contingent model and the agreement of both companies to connect mobile phone network locations from Telefónica to Telekom fiber.

Further information:
Telefónica Deutschland
Investor Relations
Georg-Brauchle-Ring 23-25
D-80992 Munich
t +49 (0)89 2442-1010
f +49 (0)89 2442-2000
e ir-deutschland@telefonica.com

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Language:	English
Company:	Telefónica Deutschland Holding AG
	Georg-Brauchle-Ring 23-25
	80992 München
	Germany
Phone:	+49 (0)89 24 42 0
Internet:	www.telefonica.de
ISIN:	DE000A1J5RX9
WKN:	A1J5RX
Listed:	Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, Hamburg, München, Stuttgart
	TecDAX

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245961  20.12.2013