German telecoms networks team up in leased line deal
German telecoms networks team up in leased line deal
Two major German telecoms firms are joining forces to share networks going forward.
Under the new agreement, Deutsche Telekom will lease parts of its network infrastructure to Telefónica Germany under a leased line deal. This will see Deutsche Telekom using fibre optics to connect to some 2,000 of Telefónica’s concentration points as part of a long-term deal which is expected to greatly benefit Telefónica and its customers in Germany who use the O2 network.
The firm’s CEO, René Schuster, said the agreement helps it to make the most of the “growing market for mobile data.” He added, “So we can offer the best quality in one of the most high-tech mobile networks in Europe.”
Telekom is generously working with its fellow network provider in order to help the industry as a whole and take its slice of the mobile pie, explained Niek Jan van Damme, a board member at Deutsche Telekom. He stated, “To be able to exploit synergies in broadband expansion, network operators have to work together. And Telekom is willing to do that”.
The overall effect of the leased line deal between the two firms will be that O2 will be able to transmit even more data at even higher speeds. Telefonica will be able to link up masts to its core network through high-speed channels from spring this year, according to initial reports.
“The agreement with Telekom gives us the chance to operate cost-efficiently, quickly and flexibly in the rapidly growing market for mobile data”, added Shuster.
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