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April 6, 2009

German firm to lease routers

Deutsche Telekom is to start financing DSL routers and modems during the second quarter of this year through finance leases, a spokesperson for the company has confirmed.

By Verdict Staff

Deutsche Telekom is to start financing DSL routers and modems during the second quarter of this year through finance leases, a spokesperson for the company has confirmed.

The German telecoms provider will lease the equipment directly on its own books, rather than through a leasing company.

“German Mittelstand customers [family-owned SMEs] will have the option of paying an additional fee per month to receive the DSL hardware of their choice, which will need to be surrendered when they change operator,” the company said.

The longer customers remain with Deutsche Telekom, the lower the monthly fee. For example, the Speedport W503V – a typical DSL router – will be charged at €1.95 during the first contract period, but the price will gradually lower to reach €0.35 per month by the fifth year of usage.

Traditionally, Deutsche Telekom has sold DSL modems to its customers – for example, the aforementioned Speedport would set a business back by €129.99 to buy outright.

This is not the first time Deutsche Telekom has acted as a lessor for its customers. Last year, the company launched another leasing solution, where business customers could put together software and hardware packages and pay a monthly fee.

“They are quoted a fixed monthly price per workstation, enabling them to maintain an up-to-date overview of their ICT costs at all times,” said Rolf Werner, head of T-Systems Business Customers, the small business division of Deutsche Telekom.

• Formed in 1996 after the state-owned monopoly Deutsche Bundespost was privatised, Deutsche Telekom, headquartered in Bonn, is Germany’s and Europe’s largest telecoms company.

• In addition to telecoms, the company also acts as a lessor for business customers, leasing data and telephone networks.

• Last year, Deutsche Telekom’s leasing volumes surpassed €330 million, up by more than €10 million on 2007’s figures.

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