Telefonica’s German O2 division is leasing fiber lines from Deutsche Telekom to boost capacity and data rates.
Deutsche Telekom has agreed to connect 2,000 Telefonica points of concentration to its fiber optic network over the coming years. Telefonica Germany aims to begin connecting mobile phone masts to its core network via the fiber links in the second quarter, and will eventually look to use the access to increase transmission rates for its UMTS and LTE sites.
René Schuster, chief executive of Telefonica Germany, says the deal allows it to “operate cost-efficiently, quickly and flexibly in the rapidly growing market for mobile data.”
Deutsche Telekom board member Niek Jan van Damme notes it is becoming essential for carriers to work together to “exploit synergies in broadband expansion.”