Group: Profit before speed - Telekom is scaling back fiber optic expansion
For Telekom CEO Tim Höttges, the fastest possible expansion of fiber-optic connections is no longer the key goal. This could set back network expansion by years.
Telekom CEO Tim Höttges emphasized during the company's recent half-year press conference that profitability, rather than speed, is the company's top priority in their fiber-optic network expansion. Speaking to a crowd of journalists in Bonn, Höttges stated, "Our goal isn't to build as much fiber as possible; our goal is to build each connection to provide more customer benefit and economic value."
In the future, the company will be more strategic in their expansion, following five key objectives. It's worth noting that the number of built or activated connections will not be a metric for success. Höttges' statement was initially largely overlooked, but it suggests that Telekom is slowing down its fiber expansion to prioritize profitability over speed.
This shift could be detrimental to private and corporate customers eagerly awaiting connections, and also for the government, which has been promising fast internet for years. Höttges maintains his Telekom as a rock in stormy seas, the company that, unlike many competitors, reliably and consistently expands the German fiber network according to strict schedules.
Other providers have often tied their promises to conditions. A popular condition is only building when at least 30 or 40 percent of residents have signed up.
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