Telefonica Agrees Roll Out Of LTE Network With German Operators

Telefónica to reduce its reliance on HuaweiHeadquarters of Telefonica Germany

The four mobile operators in Germany have signed a declaration of intentions with the government and local authorities to roll out the LTE network at national level.

The document signed will lead the operators to roll out the LTE network to 99% of households at national level by the end of 2020 and at federal level a year later. Telefonica Germany will construct 333 new mobile installations by the end of 2021. As compensation, the government has committed itself to improve the method of payment for the 5G licences auctioned in June. The spectrum payments will be able to be deferred in phases between December 2019 and 2030.

Renta 4 analysts highlight favourably “the greater level of cooperation between the different parties involved and the greater flexibility the operators will have fronting the significant investment in technology (Telefonica 1.425 billion euros). Objective price under review (previous 9.2 euros/share). Overweight.