Deutsche Telekom said it has extended its contract with Telefonica for access to its broadband network for the next ten years. Under the pact, which applies in Germany, Deutsche Telekom will grant Telefonica access to FTTH lines with download speeds of up to 1 Gbps for the first time. Telefonica will market Telekom's FTTH connections to its customers.
O2 customers will be able to access the fibre-optic network, in particular in large cities. Telefonica will also be able to use existing VSDL/vectoring lines. The parties will submit the contract to the Federal Network Agency over the coming days for clearance. The agreement will become effective in spring 2021.
This is the first time that a company has decided to use Deutsche Telekom's FTTH network and follows a recent acceleration in the German fibre roll-out. Deutsche Telekom said it wants to conclude similar agreements with other providers.
Telefonica already uses Telekom's VDSL network, which reaches 33 million households in Germany. Approximately 1.8 million households have fibre-optic connections, and Deutsche Telekom will use the proceeds from the contract with Telefonica to develop the fibre-optic network further.
The companies are already partners for mobile communications. Deutsche Telekom connects 5,000 Telefonica mobile sites to its fibre network. The two sides are also cooperating with Vodafone to improve mobile coverage.