Deutsche Telekom has enlisted utility Innogy to help expand broadband Internet access in Germany, according to information obtained by Handelsblatt. The phone company is open to partnerships, a manager told Handelsblatt.
Telekom has fallen behind in its efforts to provide households with faster internet. The German government set a goal of connecting 80 percent of households to faster Internet by 2018.
In 2015, Telekom chief executive Tim Höttges said Telekom could meet this goal alone. But so far only 7 percent of households have Internet that’s faster than the 50 MB/s minimum set by the government.
To speed up the build-up of high speed internet access, the company is now open to partnerships, for instance by hiring cable capacity from rivals, Deutsche Telekom manager Johannes Pruchnow, responsible for broadband cooperation, told Handelsblatt.
Energy company Innogy, a spin-off of the utility RWE, will be Telekom's first partner, people familiar with the telecoms industry told Handelsblatt. The two companies plan to publicly announce their cooperation soon, the people said.
Innogy has a power distribution network that reaches many rural areas where Telekom faces challenges providing access. Recently, Innogy has begun installing data cables as part of its power network.