Deutsche Telekom Capex reveals strong 5G network focus

Deutsche Telekom has revealed how the telecom operator’s investment in mobile network has resulted into revenue growth and better customer experience.
Deutsche Telekom 5G networkDeutsche Telekom’s revenue grew by 6.4 percent in 2019 to 80.5 billion euros. EBITDA AL increased by 7.2 percent to 24.7 billion euros. Net profit increased by 78.5 percent to 3.9 billion euros.

Tim Hottges, CEO of Deutsche Telekom, said: “We have confirmed our position as the clear number one in our industry in Europe with these record results.”

5G focus

Deutsche Telekom added some 1,800 cell sites in Germany. Its 5G network is transmitting data at speeds of up to 1 Gbit/s in eight German cities: Berlin, Bonn, Darmstadt, Munich, Cologne, Frankfurt/Main, Hamburg, and Leipzig.

By the end of 2020, Deutsche Telekom aims to cover the 20 largest cities across Germany with 5G. At present, LTE network reaches 98.1 percent of households in Germany – and improving coverage further is the aim.

T‑Mobile US launched the country’s first nationwide 5G network using 600 MHz spectrum, reaching more than 200 million people in the United States.

T‑Mobile Austria put the first 5G cell sites into operation back in March. The number of 5G base stations connected to Austria’s 5G mobile network has increased to 31.

Deutsche Telekom Capex

Deutsche Telekom said its Capex before spectrum investment rose 7.6 percent to 13.1 billion euros in 2019 – mainly due to the accelerated 5G build-out at T-Mobile in the United States.

Deutsche Telekom expects another increase in revenue in 2020. EBITDA AL is expected to grow to around 25.5 billion euros, of which around 13.9 billion euros will come from business outside of the United States.

Deutsche Telekom Germany’s focus was on building out superfast internet connections. 28 million households and business locations are able to use super vectoring with bandwidths of at least 250 Mbit/s.

Deutsche Telekom Germany’s Capex increased 2.6 percent. As part of the integrated network strategy, Deutsche Telekom Germany made investments in the broadband and fiber-optic rollout, IP transformation, and mobile infrastructure.

Deutsche Telekom added 2.2 million fiber-optic-based lines in Germany to take the total number to 14.4 million. More than 3.6 million customers use the internet-based MagentaTV service in Germany. It added 74,000 new customers for MagentaTV service in Germany in the fourth quarter of 2019.

T-Mobile US added 6.4 million mobile phone customers ending the year with 86 million customers.

T-Mobile US said Capex increased to EUR 6.4 billion in 2019, compared to EUR 4.7 billion in 2018, due to growth in network as it continued deployment of low band spectrum, including 600 MHz, and the launch of 5G network, and an increase in spectrum licenses acquired.

Deutsche Telekom’s Europe business reported Capex of EUR 1.8 billion, down 3.3 percent year-on-year. Deutsche Telekom Europe made significant investments in rolling out broadband and fiber-optic technology as part of integrated network strategy, primarily in Greece, Austria, Poland, and Hungary.

In Europe, nearly 4.8 million customers use fixed-mobile convergence products, 45.3 percent more than a year earlier. The percentage of broadband households that have opted for a product bundle also increased from 39.9 percent to 49.1 percent. Product bundles lead to lower churn rates and higher revenues per household.

The number of broadband lines in Europe grew 4.2 percent to 6.7 million. The number of mobile contract customers in Europe increased by 3.4 percent to 27.6 million.

T-Mobile Netherlands added 83,000 new mobile customers and 18,000 broadband customers in the fourth quarter alone.