DT lorry


Deutsche Telekomwatch
This release
: #77
November 2018: 58pp
Releases/year: 10+
Click for more details of this release

Executive brief

Group: Deals [p.6]

  • DTCP adds two more tech stakes to the pile
  • Access 4.0 still on agenda, as DT makes partner cash injection
  • Table: Telekom Innovation Pool overview

People [p.10]

  • DT revamps tech division for flexibility and focus
  • Table: People movement highlights

Supply chain [p.14]

  • Orange seeks DT piggyback on content, elsewhere

Group Development [p.17]

  • DT set to meet EC halfway on Dutch buyout

Technology & Innovation [p.19]

  • Deutsche Telekom welcomes growing TIP 'maturity'
  • DT tightening TIP ties
  • Table: TIP top-ups at a glance
  • Terragraph gets airing in Hungary, RFI in pipeline
  • DTCP joins TIP as ecosystem warrior
  • MobiledgeX attracts SKT, approaches TIP

Telecom infra Project [p.27]

  • TIP faithful and followers gather in London

Germany: Network [p.30]

  • TDE targets more business parks with fibre

Partnerships [p.30]

  • Telefónica to use TDE fibre to support 5G
  • Growing rapprochement between rivals
  • Telefónica willing to work with everyone

Products and services [p.33]

Europe: Deutsche Telekom Global Carrier [p.35]

  • ICSS becomes 'Deutsche Telekom Global Carrier'

Systems Solutions: Deals [p.38]

  • Toll4Europe gains Shell as new shareholder
  • DT at Road Charging crossroads
  • Toll Connect controversy rumbles on

Partnerships [p.41]

  • T-Sys-SAP collaboration goes Platinum
  • Table: T‑Sys's “re-defined” portfolio structure
  • Pallet-tracker comes off Open IoT Labs' production line

USA: Commercial [p.47]

  • Team of Experts to extend beyond USA

Network [p.49]

  • Sprint, TMUS align handset and network demands
  • From rivals to friends

Supply chain [p.50]

Further reading

Index

A

Acacia Communications 15
ADVA Optical Networking 22
Africa 13
Airrays 24
Alphabet
- Google
- Android 9
Amazon.com Inc. 27, 50
Americas
- Canada 9, 23
- Latin America 23
- United States of America (USA) 8, 13, 15, 18, 22, 25, 36, 46, 47, 50, 54
-- Government 50
-- States
--- New York 54
Apache Foundation 26
Apple 50
- iOS 9
Aricent Inc. 21, 23, 51
Asia-Pacific
- Australia 15
- China 15, 21, 50
-- Government 54
-- Province/Municipality/Region
--- Shanghai 44
- India 6, 8
- Japan 31
- South Korea 24, 31
AT&T 13, 50
Axiata Group Bhd (TM International)
- Cambodia (TM International (Cambodia) Co. Ltd./hello) 14

B

Bharti Group 23
- Bharti Airtel 23
Bloomberg L.P. 54
BT Group 22, 23, 24
- EE 13

C

CenturyLink Inc. 50
China Telecom 21
Ciena Corp. 22, 36
Cinco Capital 24
Cisco Systems 8, 13, 22, 51
Comarch SA 8
Comcast Corp. 50
CommScope Inc. 31
Cox Communications Inc. 50
Crown Castle International Corp. (CCI) 51

D

Daimler AG 38, 39
Deloitte Touche Tohmatsu 23
Deutsche Telekom 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 30, 31, 33, 35, 36, 38, 39, 42, 43, 44, 47, 48, 49, 51, 52, 53
- Corporate
- Headquarters 8, 15, 24, 25
- Deutsche Telekom Capital Parrtners
- Deutsche Telekom Strategic Investments
-- Skorpios Technologies (see separate) 9
- Deutsche Telekom Capital Partners 6, 8, 9, 12, 18, 24, 52
-- BENOCS 7, 8
-- Deutsche Sportwetten 8
- Deutsche Telekom Strategic Investments 8, 9
-- ZenMate (see separate) 9
- Digital Media Audience Products 8
-- emetriq 8
-- Fornova (see separate) 18
-- Kumukan 8
-- Lite Elements 8
-- Morphisec (see separate) 18
-- Motionlogic 8
-- Next Generation Enterprise Network Alliance (ngena) 8
-- SafeBreach (see separate) 18
-- SoundCall 8
-- SureNow 8
- Telekom Innovation Pool 7, 8, 25
-- MobiledgeX 20, 22, 25, 26, 51, 52
-- The Digitale 8
-- Trust2Core 8
- Europe
-- Czech Republic 12, 36
-- Hungary (see Magyar Telekom) 12, 22, 23, 36
--- International Carrier Sales & Services (ICSS) 11, 35
-- Netherlands 12, 17, 18
-- Poland (Polska Telefonia Cyfrowa/PTC) 12
-- UK (EE) 13
- European Aviation Network 36
- Executives
-- Al Saleh, Adel 42
-- Calian, John 11
-- Chupalov, Igor 13
-- Clauberg, Axel 15, 19, 26, 52
-- Goldenits, Walter 7
-- Höttges, Timotheus 13, 17, 25, 30, 39
-- Jacobfeuerborn, Bruno 12
-- Kahan, Irit 12
-- Kyllesbech Larsen, Kim 12
-- Leukert, Peter 12
-- Nafziger, Rolf 35
-- Nemat, Claudia 10
-- Rekasi, Tibor 12
-- Rickmann, Hagen 30
-- Schulte-Sprenger, Bernd 12
-- Sievert, Mike 47, 49
-- van der Walt, Mardia 11
-- van Lammeren, Tisha 12
-- Wössner, Dirk 32
- Ex-executives
-- Snoep, Marieke 12
- Germany 7, 8, 11, 12, 25, 30, 31, 32, 33
- Investments
-- Magyar Telekom (see separate) 12, 22, 23, 24, 36
- Product and Innovation
-- hubraum 9, 18
-- Telekom Innovation Laboratories (T-Labs) 11, 12, 18
- Products and services
-- EntertainTV 33
-- immmr 8
-- QIVICON 26, 27
-- Smart Speaker 27
- Strategy
-- Connected Home 12
- Systems Solutions 13, 37, 53
- Telekom IT 11
- T-Systems 8, 12, 13, 38, 41, 43, 44, 53
-- Detecon 44
-- Deutschland 13
- Satellic 39
- South Africa 13
- Toll4Europe 38, 39, 53
- Technology
-- 5G
-- haus 22
-- Toll Collect 38, 39, 40, 53
- USA 13, 22, 33, 47, 48, 49, 50, 51, 54
Deutsche Telekom Capital Partners 6, 7, 8, 9, 18, 24, 52
Deutsche Telekom Strategic Investments 8
DSP Group 27

E

Emblaze Group
- European Telecom 13
Ericsson 10, 12, 51
Europe
- Austria 39
- Belgium 24, 39
- Commonwealth of Independent States (CIS) 13
- Croatia 8
- Czech Republic 36, 53
- France 14, 24, 39
- Germany 6, 7, 8, 9, 11, 12, 13, 14, 15, 24, 26, 27, 29, 30, 31, 32, 33, 39, 40, 41, 53
-- Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 31, 53
-- Government 39
- Hungary 8, 12, 23, 24, 36, 53
- Netherlands 17, 52
-- Ministry of Economic Affairs 18
- Poland 39
- Portugal 31
- Spain 31
- Sweden 8, 12, 17
- Switzerland 25
- Turkey 23
- United Kingdom (UK) 13, 15, 23, 24, 31
-- Office of Communications (Ofcom) 31
European Telecommunications Network Operators' Association (ETNO) 13, 17
European Union 38, 52
European Commission 17, 18

F

Facebook 22, 23, 24, 26
- Telecom Infra Project 19, 26, 52
Fireglass 18
Fornova 18
France Télécom 13, 17
- Orange 13, 14, 22, 23, 24, 27, 52
- UK (see EE, DT) 13
Fraunhofer Institute 27, 43

G

Goldman Sachs 47, 49, 51, 54
Green Party 40
GSM Association
- Mobile World Congress 21, 25
GSM Association (GSMA) 22

H

Hamburg Port Authority 43
Hewlett-Packard 22
High-Tech Gründerfonds 24
Huawei Technologies 15, 44

I

Infinera Corporation 22
Inmarsat 36
Intel 22, 23, 26

K

KPN 12, 18
- E-Plus 33

L

LivePerson 48

M

Magyar Telekom (see DT) 12, 22, 23, 36
Market segments
- Machine-to-machine (M2M) 35
- Mobile virtual network operator (MVNO) 36
Mavenir Systems 21, 23
MetroPCS Communications Inc.
- Carter, Braxton 48, 51
Microsoft 13
Middle East 13
- Israel 9, 12, 18
Morphisec 18
MTN 23

N

Nokia 23, 36, 51
NTT 22, 41
Nuance Communications Inc. 27

O

Open Handset Alliance (OHA)
- Android 9
Opera Software 9
Osram 26

P

Parallel Wireless 23
Partner Communications, Israel 13

Q

Quantum Corp. 25

R

Ranovus 9
Red Hat 12
Royal Dutch Shell plc 38, 53

S

SafeBreach 18
Salesforce 13
SAP 41, 42, 43, 53
Skorpios Technologies 9
SK Telecom 11, 23, 24, 25, 52
Sonae SGPS 9
Sprint Corporation 49, 50, 54
Starbucks Corp. 13
Swisscom 6

T

Target Corporation 42
Technology
- 2G 31
-- GSM 22
- 3G 31, 32
-- Evolved HSPA (HSPA+/I-HSPA)
-- MIMO 50
- 4G 22, 26, 31, 32, 33, 50, 51
-- Long Term Evolution (LTE) 23, 26, 36, 49
- 5G 11, 13, 15, 17, 18, 21, 22, 23, 25, 26, 31, 32, 33, 35, 50, 51, 53
- Blockchain 11
- CRM 6, 8, 52
- CWDM 22
- Ethernet 23
- Fibre 7, 23, 30, 31, 32, 33, 51, 53
- FTTH 53
- IP 7, 15, 19, 26
- IPTV 33
- Linux 21
- M2M 35
- Narrowband Internet of Things (NB-IoT) 43
- NGN 33
- OpenStack 21, 44
- RAN 12, 20, 21, 23
- R&D 7, 11, 12, 14, 24, 25
- Spectrum 31
-- 700 MHz 18
-- 2100 MHz 18, 52
Tele2 17, 18, 52
- Netherlands 17
Telecom Italia 23
- Telecom Italia Mobile 22
Telefonica Group 19, 20, 22, 23, 32, 33, 36, 53
- Europe
-- Czech Republic 36
TeleManagement Forum
- TM Forum 12, 13
Telstra 23

V

Venfin Ltd
- Tracker Network (Proprietary) Limited (TRACKER) 43, 52
Verizon Communications 21, 50
VINCI Group
- Cofiroute, S.A. 39
Vodafone 19, 20, 21, 22, 23, 33, 36
- Africa, Middle East, and Asia Pacific Region (AMAP)
- India 23
- Europe Region
-- Czech Republic 36
-- Germany 33

Z

ZenMate 9
ZTE Corp. 15

  • Shell deal looks to strengthen venture’s go-to-market plan.
  • DT still positive on Road Charging opportunities, despite Toll Collect fiasco.

Deutsche Telekom (DT) flagged a further shift in its road charging systems portfolio with the sale of a 15% stake in the Toll4Europe joint venture (JV) to a subsidiary of Shell.

The Group announced that euroShell Cards, which provides the Shell Card fuel card to professional drivers and fleet managers, will also become one of the sales partners for Toll4Europe’s toll payment services.

The move means that Toll4Europe – which was established by T-Systems (T-Sys), Daimler, and DKV Euro Service in early-2017 (Deutsche Telekomwatch, #62) – now has four owners. T-Sys remains the majority shareholder as it has retained its existing 55% stake. It appears that Daimler has reduced its stake from 30% to 15%, while DKV continues to hold 15% of the shares.

Strategically, Toll4Europe’s backers look to have identified commercial synergies between euroShell Cards and the venture’s other services. Katya Atanasova, Vice-President of Fleet Solutions at Shell, said the stake buy will enable Shell to “offer our euroShell Card customers a technology that enables digital toll payments and mobility services across all [European Union] countries”.

Toll4Europe’s aim is to provide operators of heavy goods vehicles on the European road network with a universal toll box and single contract, to “enable fast track payment for road, bridge, and tunnel tolls across multiple countries”. Its focus is on pushing harmonisation between national systems under the European Electronic Toll Service (EETS) initiative, initially providing coverage across Austria, Belgium, France, Germany, and Poland during 2018.

According to a tweet by Thomas Pferr, Chief Executive of the majority-T-Sys-owned Satellic toll collection business in Belgium, the Toll4Europe JV’s first on-board unit (OBU) started to collect payments on Belgian roads in early-August 2018.

DT at Road Charging crossroads

The changes at Toll4Europe come amid a recent rejig of DT and T-Sys’ road toll collection operations. They come hot on the heels of DT’s settlement in May 2018 of a 14-year dispute with Germany’s Bundesministerium für Verkehr und digitale Infrastruktur (Federal Ministry of Transport and Digital Infrastructure/BMVI) over Toll Connect, its troubled road-charging JV with Daimler and French company Cofiroute (Deutsche Telekomwatch, #74).

DT and Daimler each agreed to stump up EUR550m in cash to settle the dispute, although the total settlement amount came to around EUR3.2bn once previous payments to the German state were taken into account. The German government then assumed control of Toll Connect when the previous contract ended on 31 August 2018, and now intends to select a new operator by March 2019.

It is unclear if DT – which previously owned 45% of Toll Collect – will throw its hat into the ring for further involvement in the business. Points in favour of such a move include the fact that road payment remains a key area of focus for T-Sys, with Road Charging forming one of the Growth Portfolio units laid out within T-Sys’ organisational structure (Deutsche Telekomwatch, #74). At the same time, it is unclear whether Timotheus Höttges, Chief Executive of DT, would really want to return to a venture that he saw as becoming a “political disaster” for the Group, following eruption of the contractual dispute and other recent legal ructions.

According to the BMVI, the extension of the truck toll to all German roads from July 2018 will ensure annual revenue of more than EUR7bn.

The German government is reported to have set aside EUR278m in the 2018 budget for the purchase of shares in Toll Collect.

The contract to a new private operator is expected to be awarded before the end of 2018. The tender documents stipulate that the future buyer must pay a purchase price of EUR350m to the government.

Toll Connect controversy rumbles on

Toll Connect has continued to feature in the German media since the settlement was reached – primarily because of ongoing suspicions of fraud in its processing of payments.

WirtschaftsWoche reported that the BMVI had reclaimed excess payments to Toll Connect amounting to EUR182m for the period between 2004 and 2010 – a figure said to have been revealed in a response to a question submitted by a member of the Green Party to the German parliament. The Greens are said to have accused Toll Connect of trying to cheat the government, and are now calling for the collection of road payments to be kept under government control.

The government nevertheless claims that it has not paid a single euro more than it should have done to Toll Collect. The disputed payments relate to marketing costs for a classic car rally and overnight stays in a hotel, for example.

Furthermore, the publication Eurotransport said up-to-10,000 haulage companies could claim back tolls of up-to-EUR6.9m following an action by the Bundesverband Güterkraftverkehr Logistik und Entsorgung (Federal Association of Road Haulage, Logistics and Disposal). Toll Collect is alleged to have illegally rounded up tolls in the period from 1 January 2009 to 26 July 2013.

Image: Deutsche Telekom

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