Vodafone Group Agrees to German Broadband Deal
LONDON -- Vodafone shares put on 1% in early trade, after announcing an agreement with Deutsche Telekom that allows it to offer high-speed fixed-line broadband and Internet protocol-based TV services across Germany.
The next-generation network access agreement sees Vodafone use Deutsche Telekom's very-high-bit-rate digital subscriber line (VDSL) network to offer its customers connection speeds of up to 50 Mbps, rising to 100 Mbps once the German company rolls out its planned vectoring technology.
Philipp Humm, Vodafone's group chief executive for Northern and Central Europe, commented: "Our agreement with Deutsche Telekom will greatly enhance our ability to offer our German customers a range of competitive, high-speed broadband and TV services, in addition to our industry-leading mobile services, in line with our broader Europewide strategy."
The agreement is subject to approval by the Federal Network Agency, but is a strong sign of intent from Vodafone CEO Vittorio Colao to push his strategy of Vodafone becoming a "one-stop shop" for consumers instead of its traditional mobile-only offering.
Investors have been wary of Vodafone's exposure to the crippled eurozone; however, the British-based telecom Goliath has proved with deals and acquisitions in recent months that it can compete on other fronts.
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