Debitel AG was one of the largestmobile telephone services providers inEurope, offering a wide range of telecommunication products – mobile and land-line telephony as well internet services. At its peak, the business commanded a 47% market share of the mobile service provider market in Germany (its largest market) with 12.4% of the overall mobile telephone market as of 2004[update]. The company boasted over 10.2 million customers of which 8.3 million were resident in Germany.
The company was founded in 1991 byDebis, a subsidiary of German car makerDaimler Benz before being sold in 2004 to a German holding company of Swiss telecommunications giantSwisscom.
In June 2004,Permira, an internationalprivate equity firm, acquiredSwisscom's 95% stake in Debitel.
In 2006 it was announced that Debitel would merge with _dug telecom AG, a German telecommunications company with 430 outlets of its own which had been founded in 1993 as a mobile telephone direct sales company called ‘Dittrich und Grella’.[1]
Including the 1100 employees of _dug, by March 2008 the merged company employed 4000 people. In October 2008 the company owned 500 outlets in Germany, marketing what are known in Germany as 'tariff-based' products under the Debitel brand on behalf of network providers such asT-Mobile,E-Plus andO2. debitel also sold land-line services at this time forDeutsche Telekom's T-Home brand,Arcor,O2 DSL, Alice (a German brand owned byTelecom Italia) andFreenet.
In July 2007 Debitel was granted permission by theEU Commission to take overElmshorn-based telecommunications companyTalkline.[2]
Debitel subsequently consolidated the administration of the merged companies and downsized human resources leading to the loss of 700 jobs at Talkline and the announcement that Talkline operations would close entirely by 2010.[3]
In April 2008,Freenet AG announced it would purchase Debitel fromPermira including all liabilities for approx. 1.6 billion euros.[4]
Between 1999 and 2005, Debitel was the main kit sponsor of German football clubVfB Stuttgart.