Deutsche Telekom’s fiber optic expansion in 140 of the 179 municipalities within the Gigabit region of Stuttgart

Deutsche Telekom said it has deployed its fiber optic network in more than 140 of the 179 municipalities covered by its agreement with thegigabit region” of Stuttgart. The German network operator has developed its network in the districts of Boeblingen, Esslingen, Goeppingen, Ludwigsburg and Rems-Murr districts.With ongoing expansion efforts at over 58 construction sites, the company is making significant progress, particularly in nine districts in Stuttgart, according to the statement from the company.

Since 2019, Telekom has accounted for more than 90 percent of the growth in fiber optic infrastructure. As the sole company expanding into both rural and urban areas, Telekom has established itself as a reliable partner, delivering on all construction projects and cooperation agreements, according to the broadband officer of the region and managing director of Gigabit Region Stuttgart (GRS).

In Ludwigsburg and Esslingen alone, Telekom has already been awarded contracts for 76 funding projects. The recent collaboration with Stadtwerke Nuertingen serves as a prime example of Telekom’s cooperative efforts.

Currently, approximately 30,000 households in expansion areas under this partnership can already subscribe to Telekom’s fibre optic connections.  The long-term goal is to enable 185,000 households within cooperative areas with municipal utilities to choose their preferred communication provider for fibre optic connections by 2030.

The combined efforts of self-expansion, collaborations, and subsidized projects have granted around 335,000 households throughout the region access to the fibre optic network, Telekom said.

The core focus of the gigabit project is to expand the ultra-fast fiber optic network through strategic partnerships. Currently, 177 municipalities, including Stuttgart and the neighbouring districts of Boeblingen, Esslingen, Goeppingen, Ludwigsburg, and Rems-Murr, are participating in the expansion program.

The project aims to provide 50 percent of households, all companies, and schools with fiber optic connectivity by 2025. By 2030, the target is to achieve 90 percent household coverage.  With a population of approximately 2.8 million in the conurbation, other companies in the Stuttgart region are also actively involved in fiber optic expansion initiatives said Telekom.

Telekom includes provisions for rapidly expanding the performance of its 5G network. Presently, almost 95 percent of households can already access 5G in Telekom’s mobile network, while over 99 percent of the population can utilize 4G/LTE connectivity.

Significance of DT Tower Sales:

Deutsche Telekom said proceeds from the sale of its tower business helped reduce net debt excluding leases by over 10 billion euros compared with the end of 2022, to 93 billion euros. The transaction was also the main factor behind the near quadrupling of net profit, to 15.4 billion euros, compared with the same period last year, the company said.

Deutsche Telekom had agreed in July 2022 to sell 51% of its tower business in Germany and Austria to a consortium of Canada’s Brookfield and U.S. private equity firm DigitalBridge after they made a surprise last-minute bid that valued the unit at 17.5 billion euros ($17.5 billion).

References:

Deutsche Telekom Accelerates Fiber Expansion in Stuttgart

https://www.reuters.com/business/media-telecom/deutsche-telekom-slightly-raises-2023-profit-outlook-2023-05-11/

https://www.telekom.com/en/media/media-information/archive/gigabit-project-in-the-stuttgart-region-573240