Business Strategy and Outlook| Javier Correonero |
Germany and the U.S. represent around 25% and 60% of Deutsche Telekom’s EBITDA, respectively. Rather than investing early in fiber-to-the-home, or FTTH, Deutsche Telekom decided to upgrade its copper networks in Germany while charging incrementally higher prices when migrating customers to faster broadband speeds. Over the past decade, this has resulted in steady revenue growth in its German fixed-line segment, having one of the healthier growth rates in Europe. The firm will do a gradual rollout of FTTH during the next 10 years, something that will solidify its position as the broadband leader in the German market.