Deutsche Telekom followed its three main rivals and revised its German mobile charges on Monday as the turf war intensifies Europe's biggest national market.
KPN's (The Hague, Netherlands) E-Plus, Vodafone Germany (Dusseldorf, Germany) and Telefonica Germany's O2 (Munich, Germany) have already changed their prices as German consumers catch up with the rest of the continent by switching to smartphones from basic mobiles.
Deutsche Telekom (Bonn, Germany) said it would offer customers who already own a mobile device a 20 percent discount and add free data access to all packages.
From May 22, it will raise prices at the low end of its range, upgrade mid-range packages, cut prices on high-end mobiles and offer unlimited voice and text services from 49.95 euros ($65) per month to 99.95 euros.
"Compared with Vodafone, we believe Deutsche Telekom is now very competitive, in particular in the mid-range, which could well inspire a response," said Jefferies analysts in a note to clients.
Until only a few months ago Germany was seen as a haven of growth and high margins in a sector struggling to grow in France, Britain, Spain and Italy because of regulatory pressure, price wars and recession.
Deutsche Telekom and Vodafone are Germany's largest mobile players, each taking 34 percent of 2012 mobile services revenues from about 114 million mobile subscribers, while KPN and Telefonica Deutschland share about 32 percent.
(Reporting by Harro ten Wolde; Editing by Louise Ireland)