Telecom Growth: O2 and Deutsche Telekom Acquire Hundreds of Thousands of Mobile Customers

In a competitive landscape, O2 Telefónica and Deutsche Telekom have emerged as the frontrunners in attracting mobile users in Germany, while competitors Vodafone and 1&1 are experiencing a decline in their customer base. O2 Telefónica reported a net gain of 824,000 mobile contract customers in the previous year, a figure that reflects the total number of new subscribers after accounting for cancellations. This indicates a positive trend for the company, which offers monthly subscription plans.

Similarly, Deutsche Telekom added 1.18 million customers, marking a significant growth in its mobile subscriber base. In contrast, Vodafone and 1&1 saw modest increases of 63,000 and 130,000 customers respectively, resulting in a loss of market share for both providers.

The mobile telecommunications market in Germany has been characterized by fierce price competition, with providers offering consumers increasing amounts of data for the same price. O2 has significantly focused on discounts and promotions, especially towards the end of 2024, to entice customers into signing contracts with them.

The growth in mobile contract subscribers is a long-standing trend in Germany, driven by the increasing importance of mobile connectivity in the digital age. Many individuals now hold multiple mobile contracts, catering to devices like tablets and family members' phones. Additionally, a slight demographic increase has contributed to this rise. The trend also indicates a shift away from prepaid plans, as more consumers opt for fixed-rate contracts, thereby being categorized as contract customers.

O2 Telefónica recently disclosed its financial results, revealing a revenue of approximately EUR8.5 billion for 2024, a decrease of 1.4 percent. This decline can largely be attributed to regulatory changes, particularly in interconnection fees that telecommunications operators charge one another for transferring calls between networks, which have halved. Excluding this regulatory impact, the revenue drop would have been only 0.4 percent.

However, O2's operating profit (EBITDA) rose by 3.8 percent to reach a record high of EUR2.7 billion, attributed to efficiency measures and the acquisition of more profitable customers under the company's own brands. The CEO of O2 expressed satisfaction with the company's performance, indicating a successful year.