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Deutsche Telekom entertains two million Germans

Germany’s biggest telco has reported encouraging progress for its TV services across Europe, with strong growth at home and abroad as its IPTV strategy continues to deliver rewards.

Deutsche Telekom had reached 2mn customers for its domestic TV service ‘Entertain’ by the end of last year, up 26% from 2011, with the vast majority (1.6mn) receiving the service via IPTV.

The telco sold an increasing number of pay-TV packages in Germany over the course of 2012, and this year will also be selling packages from satellite rival Sky thanks to an agreement signed early last month.

Across other European markets, Deutsche Telekom recorded a substantial 18% increase in IPTV subscribers last year, reaching a total of 954,000.

This year the company reportedly plans to augment its European TV services with a range of its own content, as well as content provided by its partners.

Despite a “persistently strong headwind” caused by regulatory challenges in certain European markets and a difficult economic environment, Deutsche Telekom saw its overall revenues remain steady (-0.8%) at €52.8bn in 2012.

Outgoing CEO Rene Obermann comments: “We are going on the offensive – with extensive investments in networks and in the market. As we said in December, we want to massively step up investments in the future again, to almost €30bn for 2013 to 2015.”

Of this total, €6bn is destined for broadband rollout in Germany using fibre-to-the-cabinet (FTTC), vectoring and LTE technologies, and €4bn is to be used for building an LTE network in the United States.

Obermann will not be around to see most of the money spent however: last December the DT chief confirmed his intention to leave the company by the end of 2013, with CFO Timotheus Höttges lined up to take his place.

Informa Telecoms & Media (publisher of IP&TV News) calculates that Deutsche Telekom had an 8% share of the German pay-TV market by the end of June 2012, compared to 38% for KDG and 34% for Unitymedia.

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