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

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

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By GlobalData

“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

• 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.