Telefónica Deutschland / O2 still aims deliver minimum cumulated revenue growth of five percent between 2020 and 2022 and sustainably improve its profitability | Investment plan for the period of 2020 to 2022 continues | Over 30 per cent 5G coverage in Germany by the end of 2021 and nationwide 5G network by 2025 | Active sharing agreed with Deutsche Telekom and Vodafone in so-called "grey spots" in rural areas | Telefónica Deutschland / O2 invests proceeds from sale of rooftop sites to Telxius mainly in infrastructure and business development | Progressive digitalisation reduces costs and increases revenues
Telefónica / O2 and Deutsche Telekom plan to close several hundred so-called grey spots in 4G network coverage for their customers before the end of the year. At the sites, the partners will share active network technology. Unlike previous collaborations such as site sharing or the operator agreement to close white spots, no second separate radio technology or additional antennas need to be installed in this approach. The two companies have now signed a corresponding letter of intent.
Telefónica / O2 and Vodafone want to close several hundred so-called grey spots in the 4G network coverage for their customers before the end of the year. At the sites, the partners will share active network technology. In contrast to previous cooperations such as site sharing or the operator agreement to close white spots, this approach does not require the installation of a second separate radio technology or additional antennas. A corresponding letter of intent has now been signed by both companies.
Telefónica / O2 is taking a technological frontrunner role in the use of Open RAN. The company is the first German network operator to rely on Open RAN in live operation of its mobile network. With the open and vendor-independent solution for the radio access network (RAN), the company is launching a new era for German mobile communications. Open RAN can not only significantly change the supplier structure in the mobile communications sector worldwide, but also significantly accelerate the introduction of new services. Network operators and industry alike will benefit from this. In a pilot phase, Telefónica Deutschland / O2 is converting three O2 mobile sites in Landsberg am Lech, Bavaria. From fall 2021, the company plans to roll out the new technology on a larger scale in the O2 network.
In 2020, Telefónica Germany / O2 will be vigorously expanding the 4G network as part of the largest network offensive in the company's history. Now the company is reporting an important success: 98 percent of households in Germany are now covered by 4G, thus fulfilling the nationwide requirement of the Federal Network Agency (BNetzA).
In the current mobile network test by trade magazine connect, the O2 network secured a "very good" rating for the first time in the 25-year history of Telefónica Deutschland / O2. The toughest industry benchmark in the country thus confirms the decisive breakthrough in network quality that O2 has achieved with its 4G expansion offensive. All three German mobile networks are moving closer together in the evaluation and are on a par with each other with the grade "very good". The O2 network improved most significantly with a plus of 94 points to a meanwhile record of 852 points. In terms of mobile data usage, the O2 network is now the second best provider in Germany.
Strong performance in the CHIP network test 2020: Thanks to the comprehensive network expansion offensive, the O2 network makes the biggest quality leap (+25 percent) across all network operators this year and is catching up closely with the competition. O2 again receives an overall "good" rating, but improves it to a strong 1.59 (after 2.3 in the previous year). The network thus missed the leap to "very good" (from 1.50) by a hair's breadth – a motivation for further network expansion and the coming year. Especially pleasing for O2 customers: The CHIP network test certifies the O2 network a very good network quality for mobile calls and data usage as well as a good 4G availability – also in rural areas and along train routes.
"Compared to last year, O2 has made enormous progress in LTE coverage" - that is the conclusion of this year's network test of trade magazine COMPUTER BILD ("The best network for 2021"). The O2 network once again secured an overall "Good" (2.4) rating and improved in numerous important categories. This year's score is based on much stricter measurement criteria. For the first time, only 4G data connections are considered and 3G connections are no longer rated. Particularly pleasing for O2 customers: The O2 network is taking the biggest step forward in 4G availability in rural areas across all operators and is improving significantly. In addition, the O2 network cuts a good figure in large cities and leaves the competition behind in some cities.
Telefónica Deutschland / O2 is once again accelerating its network expansion: By the end of 2021, the network operator will convert the existing 3G technology of its O2 network to more powerful 4G technology - one year ahead of schedule. Customers of all brands of Telefónica Deutschland / O2 will benefit from a better network experience in their daily data usage. O2 customers will be able to surf the web significantly faster via the 4G network than on the former 3G basis and the voice quality will improve noticeably. With this decision it is also clear: By the end of 2021 3G will be a thing of the past in Germany. Mobile phone customers in this country will in future only use the significantly faster 4G and 5G standards for mobile applications such as social media or music and video streaming.
The business of Telefónica Deutschland / O2 performed well in the third quarter. Thanks to high customer interest, especially in mobile tariffs of the core brand O2 and fixed-network offers, the company was able to slightly increase revenue and its operating result (OIBDA). In the mobile business, a positive seasonal development in the demand for prepaid tariffs could be seen in addition to a strong development in the number of postpaid accesses. The company is thus on track to achieve the targets it has set itself for the year as a whole.
O2 is launching O2 Money together with its banking partner comdirect on 29 October. The new app is a freely available smart financial assistant for all users. In addition to the practical functions of the financial assistant, O2 customers will receive bonus interest on their credit balance up to a certain amount. O2 customers who integrate their O2 banking account with comdirect into the O2 Money app receive 2 percent bonus interest per year.
Telefónica Germany / O2 has set itself the goal of reaching net-zero emissions by 2025 at the latest. For the company, this means that all products or services provided, as well as its business activities as a whole, should no longer increase greenhouse gas emissions in the atmosphere. To this end, concrete measures and interim targets will now be defined every year until 2025, with the aim in particular of improving electricity efficiency, reducing unavoidable CO2 emissions and increasing the quality of the green electricity used. One focus will be on energy management and network technology.
O2 is attacking in the fixed network market: O2 my Home will be launched on 3 November. O2 is the first German provider to launch a tariff that applies equally to DSL, cable, fibre optics and the mobile-network-based O2 HomeSpot. The 4G-/5G router will become an integral part of O2's new home world, enabling telephony for the first time, offering customers a fixed network number - and is thus a fully-fledged fixed network replacement solution. With its new home offering, O2 is significantly simplifying tariff structures in the fixed network market and ensuring transparency and clarity in the tariff jungle.
AY YILDIZ was launched on October 17, 2005 as one of the first mobile phone brands in Germany to tailor its offering specifically to the needs of the German-Turkish community. Over the past 15 years, AY YILDIZ has continuously expanded its mobile phone offer for telephony and data use in Germany and Turkey. In addition, the brand has addressed important social issues for the German-Turkish target group through various marketing campaigns. On the occasion of its 15th anniversary, AY YILDIZ customers will receive a gift of up to 15 GB data volume.
Telefónica Deutschland / O2 and Deutsche Telekom are extending and expanding their existing cooperation in the fixed network at an early stage. The two companies have signed a ten-year contract to this end. The contract will also enable O2 to market Telekom's fiber optic home access services (FTTH) to its customers in future. In addition, O2 will continue to use VDSL and vectoring wholesale products from Telekom.
Starting today, private O2 customers can experience 5G: The use of the new mobile phone standard is a fixed component of all O2 Free tariffs starting at 39.99 euros per month. New customers can book it via all O2 sales channels. Existing customers with a "5G ready" tariff activate 5G usage with just a few clicks. O2 also offers a range of attractive 5G smartphones in all price categories - with and without mobile phone tariffs. They can be paid off flexibly via the O2 My Handy instalment model. If desired, customers can protect their new end device with the new O2 cell phone insurance.
Parallel to the current launch of the O2 5G network, Telefónica Germany / O2 is also making great strides in the 4G expansion. The company has reached the second interim target set by the Federal Network Agency (BNetzA) for the subsequent fulfillment of the supply requirement from the frequency auction 2015 on time by 30 September 2020. In total, O2 has installed 5089 new 4G stations since the beginning of the year, more than the required 4940.
On the 30th anniversary of the German unification, Telefónica Germany / O2 enters the 5G era. In cooperation with the Bavarian Prime Minister Markus Söder, the CEO of the Munich-based company Telefónica Deutschland / O2 switches on the 5G network of O2. "We are starting off the data turbo for digitization from Bavaria, for Germany", said Markus Haas at the switch-on ceremony.
On October 3, O2 will launch the 5G network in the five largest German cities Berlin, Hamburg, Munich, Frankfurt and Cologne. This way the core brand of Telefónica Germany sets a sign for digital progress and mobile freedom in a symbolic virtual act on the 30th anniversary of German reunification. The same also applies to the new mobile communications standard: O2 democratizes high-tech. By offering the best value-for-money 5G proposition, O2 will open up access to the 5G experience to all consumers. O2 private customers will enter the 5G era with the commercial marketing of the offers on 6 October. They can use 5G from day one at no extra charge. Attractive offers for O2 business customers will follow soon. They will all experience completely new dimensions of digitalisation with O2 in the future.
Telefónica Deutschland / O2 has broken the 20,000 mark for 4G coverage of mobile phone sites with its current network expansion offensive. Since the beginning of the year, the network operator has set up around 4,000 4G stations to provide numerous towns and districts with mobile O2 high-speed networks for the first time. In addition, more than 2,000 additional 4G stations are in operation at existing locations to provide more capacity and higher surfing speeds for mobile data use. Thus, O2 network engineers have improved the 4G mobile coverage for over 5.5 million people in the O2 network since the beginning of the year. The 4G mobile communications standard enables O2 customers to use all digital applications even when they are on the move.
Today, the car manufacturer Mercedes-Benz Cars put one of the world's most modern car production facilities into operation - an all-digital, flexible and green factory - the "Factory 56". A core element of the new, fully networked production facility in Sindelfingen will be the 5G campus network that Telefónica Deutschland / O2 has built for Mercedes-Benz Cars in cooperation with network equipment supplier Ericsson. The fifth generation of mobile communications will connect machines and systems intelligently, securely, wirelessly and in real time. In future, the network will be used in ongoing automobile production.
The O2 stores achieved an outstanding result in this year's connect Shoptest. The stores of the core brand of Telefónica Germany not only won the test once again, they also significantly extended their lead over the competition and were the only ones to achieve the overall rating 'Very good'. O2 also dominates in the individual evaluations - 14 of the 25 O2 stores tested received the rating 'Outstanding' or 'Very Good'. For the first time in the long history of the connect store test, an O2 store even achieved almost the perfect score with 499 of the maximum possible 500 points.
Telefónica Germany / O2 is the first German network operator to build its 5G core network as well as crucial 5G network functions for new industry solutions in the cloud. Via the cloud-based 5G core network, new industry solutions can be developed faster, production and logistics processes can be automated even more and applications implemented in real-time (edge computing). In an industrial use case proof of concept, Telefónica Germany / O2 will use Amazon Web Services (AWS) and its proven cloud infrastructure to virtualize its 5G core. In addition, the company is relying on 5G core and orchestration components from the Swedish telecommunications supplier Ericsson.
Telecommunications provider Telefónica Deutschland and Tech Mahindra Ltd, a leading provider of digital transformation, consulting and business re-engineering services and solutions, have agreed on a strategic cooperation in the network and services operations segment.