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What you need to know: This weblog captures key data points about the global telecoms industry. I use it as an electronic notebook to support my work for Pringle Media.

Friday, December 7, 2012

Deutsche Telekom Cranks up Capex

Deutsche Telekom said it is "substantially stepping up investments in broadband networks and products over the coming three years in order to improve its competitive position in the long term."  DT said that annual group capex, including MetroPCS, will climb to about 9 billion to 10 billion euros.

DT said it plans to increase investment in Germany to 4.1 billion euros in 2014 and 4.5 billion euros in 2016, compared with an average of 3.6 billion euros in the preceding three years. This investment will be used to:

  • Accelerate the LTE build-out in order to have 85% of the German population covered by 2016 with data transmission rates of up to 150 Mbps
  • Build-out its optical fiber network (FTTC) to cover around 65% of the population by 2016

DT plans to spend 4.7 billion U.S. dollars on capex in the U.S. in 2013 and about 3 billion dollars for the two subsequent years, compared with 2.7 billion per year on average from 2010 to 2012. DT said the focus in the U.S. is on building out a LTE network, which will cost about 4 billion dollars.

DT added: "the Group's net revenue and adjusted EBITDA are scheduled to grow again from 2014," assuming that "the about-face in European regulatory policy recently announced will be adopted in national regulation." RenĂ© Obermann, Chairman of the Board of Management of Deutsche Telekom, said: "Hesitation now means playing catch-up later. We are investing in the future – with resolve and a clear strategy." source: DT statement

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