Deutsche Telekom has announced investments of around €11.2 billion in 2016.
The Capex (capital expenditure) of Deutsche Telekom is expected to further go up in 2017.
The third quarter reports of Deutsche Telekom showed growth in the United States and Germany.
Cash Capex in 3Q16 went down by EUR 1.1 billion to EUR 10.5 billion as com.
Net investment for mobile spectrum licenses in the United States and Europe summed up to EUR 2.2 billion. This has come down from the EUR 3.8 billion spectrum license investment in 3Q15 for the United States and Germany areas.
Net cash Capex increased by EUR 0.4 billion, when the cash effects of spectrum acquisition are adjusted.
A major share of investment went to the United States aimed at network modernization leading to the roll-out of the 4G/LTE network.
Also, Deutsche Telekom invested about EUR 0.5 billion for mobile spectrum acquired by T-Mobile Polska in June 2016.
Overall, investments in Deutsche Telekom networks have went up 2016 till date.
The major areas of investments were the broadband and fiber-optic roll-out, IP transformation, and mobile infrastructure development as part of the telecom’s integrated network strategy.
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Net revenue of the telecom saw a hike from EUR 51.4 billion to EUR 53.6 billion, i.e a 4.2 percent increase in 3Q16.
The United States operating segment boosted the net revenue of the group by 13.5 percent.
The operating segment of Germany witnessed a decrease in revenue of 2.1 percent.
Also, the Europe operating segment went through a decline of 2.3 percent mainly due to the spin-off of the energy resale business in Hungary.
Revenue fell by 1.7 percent in the Systems Solutions operating segment.
The growth was led by the U.S. business segment backed by a strong growth in the mobile customer base.
In Germany, the revenue drop was a result of downtrends in the terminal equipment business, while in the Europe operating segment it was attributed to the spin-off of the energy resale business.
In Systems Solutions, fluctuations in the exchange rate and cost related pressure in ICT business were the main factors for the fall.
The net mobile service revenues also went up by 0.2 percent.
This revenue growth was put down mainly owing to the low-trending termination rates and the price discounts from the MagentaEINS bundles posted to mobile revenues.
Also, net profit of Deutsche Telekom was up more by than 30.2 percent compared with prior-year quarter to 1.1 billion euros.
This was mainly owing to higher negative special factors in connection with staff restructuring in the previous year.
The monthly data usage of Deutsche Telekom contract customers increased by around 80 percent to almost a gigabyte, triggered by new rate plans that come packed with higher data volumes.
Deutsche Telekom broadband infrastructure has spanned to expand over 92 percent of the population, witnessing a 5 percentage increase when compared with the prior-year quarter.
The revenue in the mobile communications market has declined by 2.1 percent as of the previous-year quarter.
At the same time, revenue from broadband business hiked by 1.7 percent.
Mobile revenues decreased by 6.1 percent, mainly due to the decline in terminal equipment business.
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The monthly data usage of Deutsche Telekom contract customers increased by around 80 percent to almost a gigabyte, triggered by new rate plans that come packed with higher data volumes.
Deutsche Telekom broadband infrastructure has spanned to expand over 92 percent of the population, witnessing a 5 percentage increase when compared with the prior-year quarter.
United States witnessed T-Mobile trending in 3Q2016, with 69.4 million customers as of 63.3 million customers in 3Q15.
Net customer additions amounted to 6.1 million for the first nine months of 2016, compared to 6.2 million in the prior year period.
In the meantime, Europe witnessed around 1.2 million FMC customers as of September 30, 2016, mainly due to the product portfolio MagentaOne.
Deutsche Telekom Europe is expanding its network with the standard LTE now available to 78 percent or 101 million of the population from the 16 million in 3Q15.
Also, the group has migrated over 55 percent fixed network lines to IP technology in Europe.
Vina Krishnan
editor@telecomlead.com
