Deutsche Telecom plans

DT plan

DT unveiled what it has in mind for the next two years. It plans to ramp up its spending in 2006 by €1.2bn and rollout its fiber-to-the-curb access network. DT expects to deliver 1 million triple-play customers by the end of 2006, increase its DSL customer base to 11.5 million from the current 7.3 million by the end of next year, and sign up 500,000 "dual phone" users by the end of 2007. It also expects its mobile subscriber base to rise to about 91m (+10%) by the end of 2006. The rationale behind is of course to improve its competitive position. But the growth comes at a cost: capex needs to be increased, and DT has to accept a fall in margin and profitability. Sales growth, however, is taking priority over performance.