Deutsche Telekomwatch Report #2 June-July 2011 Executive Brief
26 July 2011
|
- GROUP: Deutsche Telekom’s high-level quandary over whether to ‘stick or twist’ in embattled Eastern European markets was again to the fore as government telecoms assets came into play via austerity programmes. The Group was obliged to increase its stake in suffering Greek investment OTE to 40%, following the government’s decision to exercise a put option to sell a 10%-share in the integrated incumbent and regional player. The EUR392m transaction, which forms part of the government’s highly controversial state asset sell-off programme, forced the Group to pay a 15% premium for the stake, but values OTE at around EUR4bn, far below the EUR8bn at which DT bought 25% of the operator during 2008, or the EUR13.5bn when it increased its stake by 5% in 2009. [pp.4-8.]
- Elsewhere, OTE itself declined the opportunity to buy the Romanian government out of local wireline incumbent Romtelecom, citing “inopportune” timing. The stake is now set to be sold publicly. The Slovakian authorities denied reports that they are discussing the sale of a further 49% of Slovak Telekom to DT. Group Croatian unit Hrvatski Telekom was shortlisted as a bidder for a 75% stake in the Kosovan integrated incumbent telco PTK. [pp.9-14.]
- Claudia Nemat was recruited from McKinsey to lead the Group’s Europe operations from the beginning of October 2011, filling the role vacated by Guido Kerkhoff’s unexpected resignation earlier in the year. Everything Everywhere Chief Executive Tom Alexander announced that he is to step down, sparking further speculation over progress with integration and business revival efforts at the DT–France Télécom joint venture. Alexander is to be replaced by France Télécom executive Olaf Swantee. [pp.15, 16, 18.]
- Group activity around near-field communications (NFC)-based mobile wallet services continued to bubble away, with: Giesecke & Devrient contracted to provide DT with “functionally expanded” SIM card technology to support rollout across its international footprint. At OpCo level: Everything Everywhere progressed its Quick Tap NFC partnership with Barclaycard, as well as teaming with rivals Telefónica UK and Vodafone UK to collectively push for greater consumer and partner adoption of NFC services; and T-Mobile USA enlisted credit card companies MasterCard and Visa to aid its Isis joint venture, ahead of trials in 2012. [pp.23, 46-48, 54.]
- T-Venture made another investment geared towards boosting the Group’s Intelligent Network Solutions drive, in the form of T-City wireless health partner BodyTel. [p.25.]
- GERMANY: The race between T-Mobile Deutschland and rivals on Long Term Evolution (LTE) rollout shifted up a gear, with the OpCo launching the technology in Cologne, and both it and Vodafone Germany flagging plans to perform similar moves in other major metro areas throughout the remainder of 2011. The operators also secured greater certainty for their network roadmaps via Germany’s Bundesnetzagentur, which ruled out a “revocation and re-assignment” of their 900MHz frequencies. [pp.26, 27.]
- Further termination rate pain hit Telekom Deutschland, although this time in relation to fixed-line rather than mobile interconnection. The company described proposed cuts of up to 17% in voice fees as “incomprehensible”. [p.28.]
- EUROPE: LTE testing continued in European markets beyond Germany, with Everything Everywhere agreeing to work with BT Wholesale on LTE trials in the UK, and Hrvatski Telekom introducing connectivity in the cities of Split and Zagreb [pp.30, 45.]
- Cosmote Romania, Crnogorski Telekom, T-Mobile Czech Republic, T-Mobile Slovakia, and T-Mobile USA all flagged progression of 3G/HSPA+ rollout. [pp.32, 35, 38, 40, 53.]
- T-Mobile Netherlands’ challenges mounted, with the government confirming plans to reserve spectrum for new entrants in the upcoming ‘digital dividend’ sell-off, and the OpCo confirming plans to shut its offices in Amsterdam and Breda, losing 150 staff in the process. [pp.35, 36.]
- Deutsche Telekom performed further integration of PTC, following its full takeover of the Polish operator: formalising its radio access network-sharing agreement with France Télécom-controlled mobile rival PTK Centertel, and confirming replacement of PTC’s Era branding with the Group’s T-Mobile marque. [p.37.]
- SYSTEMS SOLUTIONS: T-Systems and several of its national units released a slew of contract and partnership announcements bridging Q2 and Q3, including multinational contracts with oil major Total and trading group Valora, and go-to-market tie-ups with SAP and Chinese IT services player Beyondsoft. [pp.49, 50.]
- USA: T-Mobile USA outsourced its machine-to-machine communications (M2M) business to existing distribution partner RACO Wireless, in a move that will see the latter essentially “become the front-end of T-Mobile’s M2M operations”. TMUS said the deal will free it to better support service expansion in an increasingly competitive market, saying RACO will be able to bring the on-boarding of new offerings down from “weeks and months” to “days and hours”. [p.52.]
- The review and approval process surrounding AT&T’s pending $39bn (EUR27bn) purchase of T-Mobile USA continued to prove fractious and unpredictable, with numerous competitors, advocacy groups, and other stakeholders raising objections, but both parties insisting the deal remains on track for completion in early-2012. [pp.56, 57, 58.]
About Deutsche Telekomwatch
Report: 2
Covering: June-July 2011
Published: July 2011
Next report: August 2011
Central Europe’s communications titan — surveillance, analysis, insight.
A unique monthly report for the industry.
- Deutsche Telekomwatch is the only independent monitor of everything and anything to do with Deutsche Telekom Group, worldwide. Nothing else comes close. Thorough, impartial, accessible, and time-saving.
- Covering not just Germany's integrated telcoms leaders and all of its international operating companies, but also its wider interests, including OTE in Greece, Magyar Telekom in Hungary, and much more.
- Our ‘watch' titles are repeatedly described by clients and end-users as the single most valuable source of third-party sales intelligence, and are considered invaluable by many high-achieving commercial teams and account directors.
- A unique source of valuable opportunities, knowledge, planning, strategy, and much more, the reports represent both tactical tool and strategic reference, providing input and even a springboard for corporate planning, reporting, and meetings.
- A ‘must-have' for sales teams focused on high-value sales, maintaining strategic relationships, and managing extended sales cycles. Just one nugget, insight, or validation can pay for the service many times over.
- Pricing is typically USD $8.2k / EUR 5.7k / UKP £5k per year for an Account Team Licence, and can be tailored to meet your specific needs and situation. Copies of individual reports are also available, priced from GBP £999 (USD $1,650 / EUR 1,100). Multiple purchasing options available, including payment cards.
- Delivered electronically 10-12-plus times a year, with back issues also available, providing unparallelled reference and insight into major events, strategic initiatives, financials and KPIs.
- Contact us for further information, including samples and evaluation trial requests. info@marketmettle.com / +44-20-7183-0111.
Comments
Got something to say?
