Rivaling operators KPN’s E-Plus, Vodafone Germany and Telefónica Germany’s O2 have already revised their prices as an increasing number of German consumers switch to smartphones.
From May 22, Deutsche Telekom will offer customers a 20% discount, and will also add free data access to its packages for those who already own a mobile phone.
Germany has seen widespread growth and high margin returns in comparison to other European countries, including France, Spain, Britain and Italy particularly due to regulatory pressure and a tough operating economic climate.
Deutsche Telekom and Vodafone have 34% of the market each, according to 2012 mobile service revenues from 114 million mobile subscribers, with smaller operators KPN and Telefonica Deutschland both accounting for approximately 32%.