Number of customers and revenue
With a total number of 15.2 million customers, Telefónica O2 Germany continued to expand its position as an integrated telecommunications provider in Germany. 7.2 million mobile customers held postpaid mobile telecommunication contracts and 7.7 million mobile customers held prepaid contracts. The number of O2 DSL customers increased to 253,000 - an increase by 53 percent compared with the previous year. In the wholesale business the number of unbundled DSL broadband connections (ULL) distributed by the partners United Internet, Hansenet as well as Freenet amounted to 1.3 million connections - a rise of 42 percent compared with the same figure of the previous year.
The overall revenue increased by 1.9 percent to € 1.78 billion in the first half of the year. Accordingly, Telefónica O2 Germany was able to disconnect from the general economic slump. Based on the termination fees lowered by the Federal Network Agency (Bundesnetzagentur) the mobile services revenue slightly decreased to € 1.4 billion (minus 0.4 percent). Without this effect, the services revenue would have increased by 0.9 percent in the first half of the year compared with the same period of the previous year.
The average monthly revenue per mobile customer (Average Revenue per User - ARPU) decreased to € 15.8 in the first half of the year (-11 percent compared with the same period of the previous year). The reasons for it were the reduction of the termination fees by the Federal Network Agency as well as the launch of new cheaper tariffs whose effect could not be fully offset by the increased revenues from the mobile internet.
Growth based on customer satisfaction
Telefónica O2 Germany continued to expand its own sales network by opening 76 new shops in the first half of the year. Today, there are more than 800 O2 shops in Germany. The company invested € 355 million in the six months, primarily in the network infrastructure and rapid mobile data technologies like UMTS, HSDPA, HSUPA and EDGE. Already today, O2 operates one of the most modern and most rapid mobile telecommunication networks in Europe. Almost 90 percent of the population in Germany can today use the mobile broad band internet via EDGE and HSDPA in the O2 network. Voice services are provided almost fully across Germany.
Customer satisfaction will continue to be the focus of the growth strategy. "With O2 o we understand that customers want freedom and need to be convinced by services", Krause emphasized. The offer without fixed contract term and monthly basic fee is focused on customer friendly and transparent tariffs. André Krause: "We want to free the telecommunications industry from teaser offers and the small print in the contract."