Deutsche Telekom to lease fiber to Telefónica Deutschland/O2

Oct. 12, 2020
While the deal with Telefónica Germany/O2 is the first time Deutsche Telekom has granted access to its fiber network infrastructure, it likely won’t be the last.

Deutsche Telekom has agreed to lease access to its fiber-optic network to competitor Telefónica Deutschland/O2. The arrangement is part of a 10-year agreement that extends an existing broadband fixed-line access relationship. The lease includes access to Deutsche Telekom’s fiber to the home (FTTH) infrastructure.

The agreement covers FTTH infrastructure Deutsche Telekom plans to deploy in the future. “This is a pioneering deal for the buildout of the fiber-optic infrastructure in Germany for the next decade, based on a voluntary commercial agreement between two large market players from which many people and companies in Germany will benefit,” said Telekom Deutschland CEO Dirk Wössner. “Deutsche Telekom stands for open networks and cooperations. And we are emphasizing this with this wide-reaching cooperation agreement. This contract will secure the utilization of our broadband network. And we will receive financial resources that we will re-invest in our networks.”

"The long-term cooperation with Deutsche Telekom gives us planning security. In future, we will be able to offer our O2 customers access to the fiber optic network, especially in large cities. On this basis we can offer our customers first-class convergent products," added Markus Haas, CEO of Telefónica Germany/O2.

The new agreement extends a relationship launched in 2013, when Deutsche Telekom began granting access to its copper lines to enable Telefónica Germany/O2 to deliver broadband services via VDSL/vectoring. The new agreement continues this practice as well as includes FTTH infrastructure access. Deutsche Telekom’s VDSL network currently reaches approximately 33 million households in Germany, while approximately 1.8 million households are equipped with FTTH.

While the deal with Telefónica Germany/O2 is the first time Deutsche Telekom has granted access to its fiber network infrastructure, it likely won’t be the last. “With regard to open networks, Deutsche Telekom wants to conclude similar agreements with other market participants. We will also offer this pioneering cooperation to other companies on the market, with the aim of also continuing the philosophy of open access in terms of FTTH buildout in the future,” said Wössner.

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About the Author

Stephen Hardy | Editorial Director and Associate Publisher, Lightwave

Stephen Hardy is editorial director and associate publisher of Lightwave and Broadband Technology Report, part of the Lighting & Technology Group at Endeavor Business Media. Stephen is responsible for establishing and executing editorial strategy across the both brands’ websites, email newsletters, events, and other information products. He has covered the fiber-optics space for more than 20 years, and communications and technology for more than 35 years. During his tenure, Lightwave has received awards from Folio: and the American Society of Business Press Editors (ASBPE) for editorial excellence. Prior to joining Lightwave in 1997, Stephen worked for Telecommunications magazine and the Journal of Electronic Defense.

Stephen has moderated panels at numerous events, including the Optica Executive Forum, ECOC, and SCTE Cable-Tec Expo. He also is program director for the Lightwave Innovation Reviews and the Diamond Technology Reviews.

He has written numerous articles in all aspects of optical communications and fiber-optic networks, including fiber to the home (FTTH), PON, optical components, DWDM, fiber cables, packet optical transport, optical transceivers, lasers, fiber optic testing, and more.

You can connect with Stephen on LinkedIn as well as Twitter.

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