OREANDA-NEWS. Telefonica Deutschland and Deutsche Telekom intend to intensify their cooperation in the fixed network and have signed a memorandum of understanding to this end. Telefonica Deutschland wants to make more use of Deutsche Telekom's new high-speed infrastructure for fixed-network products in future. With this cooperation, Telefonica can achieve the transition from its own ADSL infrastructure to a future-proof NGA platform. To achieve this, Telefonica wants to use Deutsche Telekom's VDSL and vectoring wholesale products. The process will be realized in phases, with completion scheduled for 2019. With this cooperation, Deutsche Telekom will be able to share the risks of investment and accelerate further upgrades. The cooperation will be submitted to the Federal Network Agency and the Federal Cartel Office for approval. Its launch is planned for the coming year.

"The future lies in high-speed Internet. In combination with our high-performance mobile data network, we will be able to accelerate our convergence strategy even more effectively. Our customers and partners will be the big winners. Through the cooperation, we can offer them the best fixed-network products in addition to mobile services," explains Renй Schuster, CEO at Telefonica Deutschland. "Deutsche Telekom is prepared to make massive investments in Germany's fixed-line network. But we need partners to share investment risks and accelerate the upgrade of high-performance networks," emphasizes Niek Jan van Damme, head of Telekom's business activities in Germany.

At first, nothing will change for Telefonica's fixed-network customers. But in the near future, they will have the option of upgrading to high-speed connections based on Deutsche Telekom's infrastructure. Telekom's decision to deploy vectoring, a technology that gives it a competitive advantage over cable network operators in the fixed-network business, was a major factor for Telefonica. Deutsche Telekom will take Telefonica's needs into account in its upgrade plans. As a result of vectoring, households can enjoy download transmission speeds of up to 100 Mbit/s - that's double the present speed of VDSL.

Telekom and Telefonica already cooperate within the framework of a VDSL 'contingent model', through which competitors can purchase a certain number of discounted VDSL lines from Deutsche Telekom. In another cooperation, the two companies had already agreed that Deutsche Telekom would connect Telefonica's mobile communications stations with fiber optics.