There are “strategic” moves that can be easily reversed, but are they strategic? For months, DT voiced it would deploy a VSDL high-speed, strategic network across Germany in main 50 cities at a cost of about €3.3bn. The boss changed in November and the strategy as well in January. In spite of loosing 1.5m fixed subscribers in the first three quarters in 2006, they apparently did not understand that a VDSL network only deployed in 50 cities will only register high-income subscribers (willing to pay €70 a month for IPTV services), and would not offset fixed line decline nor be profitable (up to now DT invested some €500m and only registered 25,000 IPTV subscribers). The change in strategy is clear: DT is now focus on a mass market and will use a lower-cost, lower-opex and proven ADSL2+ technology. The move reflects pressure on DT' s capex and perhaps also the looming EU legal action against the regulatory protection from the German government for the VDSL network.