T-Online, the ISP arm of German incumbent phone company, Deutsche Telekom is taking it on the chin from rival broadband service providers. A price war between T-Online, Freenet.de and Vodafone’s Arcor fixed line subsidiary pushed T-Online’s profits down 82% in the fourth quarter. In the fourth quarter this year they made about $13 million in profits, versus last year. Sales were up, a miniscule 2.5%.
The good news, (I guess), all these price cuts helped T-Online add 1.5 million new DSL customers. But this good news is going to last only for so long – most of the companies are thinking/planning transition to fiber and we can expect the ‘speed-wars’ in that market. More on the German market @ Broadband Wiki.
PS: If you are a reader based in Germany, and would like to contribute to GigaOM on the latest developments in Germany, drop me a note with “contributor” in the subject line.
3 thoughts on “T-Trouble”
Let me double that PS, please! It is so difficult for Americans to find English-language news from German bloggers; I hope some of you will take up Om’s offer.
English is very common in Germany but it’s an another story to write articles for an english speaking audience. If you are interested in a foreign market and/or cultures, maybe you should learn a little bit German, just give it a try! 🙂