25 years ago Today, on 27. In may 1994, started with E-Plus, the second private mobile radio network in Germany, according to Vodafone. Today, E-Plus to Telefonica Deutschland (O2). The provider is facing major challenges.
Regularly, the subsidiary of Spanish telecommunications giant Telefonica, ends up in power Tests, a distant third behind Deutsche Telekom and Vodafone. And that really is saying something. Because in a European comparison, the German Telekom is in the area of mobile communication, not in the top group. Even Albania has overtaken Germany to the Expansion of the mobile network.
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There is so much to do – and to increase not only customer satisfaction. In particular, the state requirements set O2 under pressure. The Federal network Agency was made in the allocation of the frequencies for the fast Internet strict requirements. The provider with their LTE network on 1. January 2020 nationwide, 98 percent of the households in each province, 97 percent of the households. At least 50 megabits per second on the cell tower and 10 Mbit/s be provided to the customer. This objective should not be achieved, threatening the O2 money a withdrawal of frequencies to be met in so far, not closer assessment of the amount or in the extreme case.
by the end of the year, wants to set up O2 about 10,000 LTE-stations, new or old, have upgraded – it is questionable whether this is enough. Because ever hopes to have an improved O2 network scattered. You had promised after the Acquisition of E-Plus in 2014, and the related merger of the two networks had a greater improvement in the network coverage. But the had to wait. O2 had underestimated the problems of merging the two infrastructures seem to.
Also another Problem when it comes to LTE Expansion could be underestimated. Because many customers of O2 use, treaties, and tariffs, with a maximum of mobile radio standard of the third Generation (3G/UMTS) can use. Since O2 decrease at the same time with the Expansion of LTE (4G) the 3G network, it could worsen the supply situation for these customers, despite the expansion of even more.
stock in a downward trend,
This is all on the share in the German technology Index, TecDax, not without a trace passed. She is under pressure. Alone within the last twelve months they fell by 30 percent and reached once again a record low.
Further course information, to Telefonica Deutschland.
The price development reflects the financial challenges of the group: Telefonica writes due the high write-downs on the existing networks and the paid balance sheet charge for E-Plus since the Acquisition in 2014, solid red, Numbers – be it operational or net income for the year.
Very high dividend
After all, the company pays very high dividends. For the past financial year, the shareholders will receive 27 cents per share. Thus, the dividend yield is around ten percent. This is not only at times of low interest rates a very good value.
in 2018 and 2017, distributed, Telefonica Germany, practically all of the generated cash to investments, to its shareholders. As in the current year – as described – to be expected with fast-growing investments, a dividend at the current level to be in the future is not secured.
And a significant increase in the number of generated cash is also not to be expected. For 2016, these are on O2 and has even declined slightly. Because in the course of the E-Plus Takeover could be off a competitor. However, in order to obtain the approval of the EU Commission, had O2 agreed previously, 20 percent of its capacity to competitors, Drillisch to assign. This value was later increased by the EU-Commission even to 30 percent. Since then, Drillisch is striking, since 2017, the majority of to United Internet belonging to a particularly aggressive competition.
After a strong growth for O2, the sounds not just.
source: boerse.ard.de
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