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World Markets Analysis
March 13, 2006
By Eva Bakowicz
From Lexis Nexis

Germany's Infineon is to supply chips for Deutsche Telekom's new 3 billion euro (US$3.6 billion) high-speed fibre-optic broadband network.

According to the terms of the deal, Infineon is the sole supplier of a Vinax chip-set to power the broadband access systems, both for the DSLAMs that aggregate multiple DSL customer signals for connection to the network and on the customer premises side. The value of the deal has not been disclosed.

Significance: Deutsche Telekom plans to connect half a million homes and businesses in the first phase of its VDSL network roll-out in 10 German cities by June 2006, enabling speeds of up to 50 Mbps, by mid-2006, while 40 other German cities will be connected in the second phase of the roll-out by 2008.