Number of customers, revenue and ARPU
Telefónica O2 Germany was again able to significantly increase the number of mobile and DSL customers and registered a total number of 15.7 million customers at the end of the quarter. 8.0 million of them are mobile customers with prepaid contracts and 7.4 million are customers with postpaid contracts. One reason for the successful business from new customers was the simplified tariff portfolio focusing on O2 o. "O2 o has excellently positioned itself on the market", Krause says. The partner business with Tchibo, Hansenet, Kabel Deutschland, Schlecker, M-Net and the group's discount brand Fonic developed very positively as well. It substantially contributed to the growth of customers.
The number of unbundled broadband connections in the DSL wholesale business which was integrated into the Business Customer Group of Telefónica O2 Germany in July amounted to 1.6 million - an increase of 28 percent compared to the same period of the previous year. O2 registered 272,000 own DSL customers at the end of the quarter corresponding to an increase of 38 percent.
With € 966 million, the company generated the highest quarterly revenue so far - an increase of 5.5 percent compared to the same period of last year. One reason for this positive trend was the new business model O2 My Handy which offers hardware and tariffs separately. The services revenue from mobile offers fell nominally by 0.4 percent to € 729 million. Adjusted by the effect of the termination rate reduced by the Federal Network Agency, the services revenue increased by 2.1 percent compared to the same period of last year.
The Average Revenue per User (ARPU) of € 15.7 remained unchanged compared to the last quarter. The ARPU decreased by 9.2 percent year-on-year due to the termination rate which was reduced in April and customers switching to cheaper tariffs in 2008.
Investments in the network expansion and sales network
In the third quarter, Telefónica O2 Germany invested € 192 million. One focus was the expansion of the mobile telecommunications network which, like the DSL network, is one of the best data networks in Germany. In Munich, the company was the first provider to start a pilot test for HSPA+ in November enabling mobile download rates of up to 28 MBit per second and upload rates of up to 5.76 MBit per second. With 60 new sales branches the sales network significantly grew in the quarter under review as well. After Munich and Berlin, O2 opened the third flagship store in Cologne and today operates more than 850 shops across Germany.