Portrait of Telefónica O2 Germany

Telefónica O2 Germany is an integrated telecommunications provider. We offer mobile phone products, data services, DSL landline telephony and high-speed Internet.
Annual sales of 3.7 billion euros (2009) make Telefónica O2 Germany GmbH & Co. OHG a major player in the German telecommunications market. The O2 brand is the focus of our activities. O2, supplies retail and corporate customers with attractive prepaid and postpaid mobile phone products. These packages are supplemented by innovative mobile data services based on GPRS and UMTS technology. At the end of 2009, 15.8 million retail and business customers were benefiting from our product packages.
O2 belongs to Telefónica Europe and is part of the Spanish telecommunications group Telefónica S.A. Our parent company ranks among the leading telecommunications providers worldwide. The company has a market presence in 25 countries throughout Europe, Africa and Latin America with a workforce numbering some 250,000 employees. The company has achieved a customer base of more than 265 million customers with a broad range of services encompassing mobile phone, landline, broadband and digital TV packages.
Rapid growth
 Growth in customer numbers (millions)
In 2009 O2 was the fastest growing provider in the market, measured by the increase of customers. Our customer-centred rates combine with packages for mobile Internet and data services to make us an exciting partner for consumers and businesses. It is our goal to become one of the leading telecommunication providers in Germany. During the business year 2009, we launched the integration of DSL provider HanseNet, a business partner enjoying a long track record of cooperation with O2. Once the integration of HanseNet into the Telefónica Group is completed in 2010 it will contribute more than two million new customers and, measured by sales, we will rank number three in the German telecommunications market. We have also integrated our fellow company Telefónica Deutschland in the company Telefónica O2 Germany.
During the business year 2009, we again increased sales - by 4.2 percent to 3.7 billion euros. At the same time, the number of customers rose from 14.4 million to 15.8 million. This figure includes 1.5 million new mobile phone customers.1) 7.7 million customers have a postpaid contract.
Fast mobile data transfer
In 2009, we invested a total of 796 million euros in expansion of our infrastructure, focusing especially on the mobile phone network. Our mobile phone network now delivers virtually nationwide coverage. There are more than 17,000 GSM base stations and 10,000 UMTS stations. This network enables our customers to make phone calls and surf the Internet while they are on the move. We were also the first provider in Germany to launch a pilot project for fast data transfer using HSPA+ technology (High Speed Packet Access +) in Munich in November 2009. This enables users to download data at a speed of up to 28 Mbit per second and transmit at speeds of up to 5.76 Mbit per second.
Special offers for business customers
Landline business has been part of our Business-to-Business division since July 2009. This business achieved notable successes during the past year. Using our dedicated broadband network as a platform has enabled us to provide access to the ADSL2+ fast Internet technology. We are focusing our drive on Internet providers or carriers who do not have their own network in Germany or would like to supplement their infrastructure.
Our broadband network ranks among the biggest in Germany. It has more than 2,500 local switching centres, known as main distributors, and more than 400 Points of Presence (PoP). This network gives us the capability to reach some 67 percent of all households.
Sales through our own shops
Our sales network also expanded during the course of 2009. After Munich and Berlin, we opened a third O2 flagship store in Cologne. The shops we operate alone or with partners now number more than 940. This is equivalent to growth of 29.7 percent. We are also continuing our successful cooperation with sales partners Tchibo, Schlecker, M-net and Kabel Deutschland.
1) For a better comparability of the annual results adjustments of the prepaid customer-basis by 450,000 in December 2009 and by more than 240,000 in 2008 were not considered. Nominally the reported net customer growth in 2009 was 1.3 million.