Price-performance winner at Smartphone Magazine network test:O₂ network awarded with "good" rating

4 questions for Michael Häberle, Director Network Operations & Quality at Telefónica Deutschland Michael Häberle: In the division led by Michael Häberle, the quality of the O₂ network is continuously analyzed and quality targets as well as optimization proposals for the further network expansion are derived. In a short interview, we talked to him about the upcoming annual network tests. In the coming weeks, the network tests of the specialist magazines connect, CHIP and COMPUTER BILD will be published. What can we expect compared to last year? Michael Häberle: Last year's network test results were very pleasing for us. We have improved in all three network tests in 2018, mainly significantly. The results reflected our quality improvements due to the network integration that has been completed and our LTE expansion progress. Of course, I cannot make any predictions for this year's network tests. The fact is that we have massively improved our network quality this year. Our internal quality indicators show a positive trend. Because we are currently implementing the largest LTE expansion program in our company's history and many other optimization measures in the network division. Of course, we also need to consider that the methodology used by the network testers is regularly changing or tightening up. Last year, for example, connect integrated crowdsourcing results into its evaluation for the first time and assessed individual thresholds for achieving points more strictly. This then flows restrictively into the results. We can therefore look forward with great anticipation to this year's network test results. We are all the more pleased when our massive quality improvements, which are already visible in everyday customer life, are also reflected in the results. How are such network test results actually created? What are the differences? Michael Häberle: Every network test is different. This applies to the methodology, the threshold values and the evaluation. When collecting data, the network test specialists often rely on so-called drive and walk tests. Here, certain routes are driven or walked with measuring equipment. The results show an excerpt of the network performance at a certain point in time. In addition, crowdsourcing data is increasingly used. Customers can either actively carry out a network test measurement using an app, or regular measurements are carried out in the background of the app. An overall picture is put together from these numerous individual customer measurements. In addition to the active tests, data is also collected from the actual service usage, i.e. when the customer browses the Internet or watches a video. It is interesting to note that the data rates determined in crowdsourcing are generally significantly lower than for a pure speed measurement, since no high data rates are required for the data services typically used by the customer. In addition to the dependencies of the network technology such as 2G, 3G and 4G or the service used, the used device is of course also decisive: if it cannot use 4G yet, data rates can also be lower. Thus there are often differences in the reported data rates, depending on the measurement methodology, calculation or framework conditions of the customer. Recently, the LTE network speed in major German cities was analyzed in a separate study. The average speed in the O₂ network had improved from 30 to 37 Mbps. Are there any further explanations? Michael Häberle: Our O₂ customers currently surf our network at an average speed of around 40 Mbps. Last year it was 30 Mbit/s. We have therefore taken a huge step forward with our comprehensive network expansion measures. With these average data rates, our customers can use all digital applications. For smooth YouTube streaming, only about 5 Mbit/s are required. And even for streaming in HD quality, Sky recommends an Internet connection of at least 8 Mbps. We therefore offer solid data rates for the use of all applications. Of course, we will continue to upgrade our network capacity on a large scale as our customers' data usage continues to grow. What do such data rates say about the performance of the network? Michael Häberle: It is important that customers have the data rates they need to use their digital applications. It is not about any top data rates. In addition, such results should focus on the performance of the entire network and not reduce it to core brand characteristics. After all, mobile usage is known to be a shared medium in which all users in a network share the available network capacities. Not all results automatically apply to second or partner brands - and thus to the actual performance of the entire network. As Telefónica, we are the only German network operator to offer the fast LTE network to all customers of our own and partner brands. This means that our LTE network also handles a much larger volume of data. And yet our network enables us to offer millions of customers of our own and partner brands a good and continuously better network experience. An increase in data rates is therefore the result of very extensive LTE capacity upgrades that benefit all customers equally. This is also confirmed by the recently published Mobile Discounter Check 2019 published by the trade magazine connect, in which Telefónica was named the best network operator for mobile discounters. And in an analysis by network test specialist Tutela in summer, for example, we were able to secure the first place in network quality in four out of five major cities tested. The customer experience of second and partner brands in the network was also included here in order to present a holistic view of the network.