“We are still there, and stronger than ever”: this is how Telekom boss Tim Höttges opened the press conference for the presentation of the 2019 balance sheet. Deutsche Telekom was 25 years old and, according to him, has the best figures for all the times. In 2019, sales increased 6.4 percent to 80.5 billion euros compared to the previous year. Adjusted AL EBITDA increased 7.2 percent to € 24.7 billion. Deutsche Telekom achieved its forecast for 2019, which was raised in November. “This is a historic day for Deutsche Telekom,” Höttges said.
Networks and customer base are growing
Network expansion was Telekom’s focus in 2019. Around 28 million homes and business locations could now use VDSL supervectoring with bandwidths of up to 250 Mbit / s. In fact, 14.4 million “fiber optic connections” are switched on the network. In telecommunications jargon, this means all connections starting at 50 Mbit / s. It was 2.2 million more than the previous year, including bitstream lines for other providers.
Telekom itself has 8.5 million connections of this type from VDSL 50 onwards, where it maintains the contractual relationship with the customer. More than 3.6 million customers use MagentaTV. There were 74,000 new customers here in the fourth quarter of 2019 alone. There are a total of 17,824 million connections on the telecommunications network, almost 800,000 less than a year earlier.
One of last year’s success factors was the combination of fixed line and mobile phone products, better known as MagentaEins. Almost 4.7 million customers now use these offers.
A total of 46,189 million users in Germany use the Telekom mobile network. 25,291 million have opted for a contract. Not everyone has Deutsche Telekom as a contractual partner. In one year, the number of users increased by 1,987 million, but the number of clients per contract decreased by 144,000.
No response to Vodafone
Just this week, the competitor Vodafone reduced its gigabit product in campaigns to 40 euros per month. At this price, Telekom customers get just 50 Mbit / s instead of 1000 Mbit / s. But when asked, Telekom boss Höttges chilled Düsseldorf’s offer. “There will always be such attacks and prices. The market is dynamic. But I would ask the question: Why does Vodafone really have to cut its flagship product by 50 percent in price? Are you having sales problems? “
Therefore, Telekom will not react to the offer. “I don’t care when I see our growth figures.” The Bonn-based company wants to combine the broadband product with Magenta TV and offer it to customers, and they would accept it well.