Huawei MWC


Deutsche Telekomwatch
This release
: #78
December 2018: 56pp
Releases/year: 10+
Click for more details of this release

Executive brief

Management update

Q3 FY18: Bullish DT seeks to leave struggling peers in dust [p.6]

  • Made in America, but Europe starting to get involved upstream
  • Table: Deutsche Telekom, financial summary, Q3 FY18
  • Figure: DT net debt development, FY14-FY18 (EURbn)
  • Another uprating in earnings
  • Table: Deutsche Telekom, Europe area revenue by territory (adjusted), Q3 FY18
  • The costs of aggression

Group

Deals: FT hints at BT-DT deal on the QT [p.12]

  • BT down the list of DT global domination plans…

DT doesn't dance to EC tune in the Netherlands

People [p.15]

  • Table: People movement highlights
  • Partner/supplier people movement highlights

Group Development: Comfortcharge makes low-powered debut [p.19]

  • DT seeks to socket to them

Technology & Innovation: 5G tests at Hamburg port going swimmingly [p.21]

  • Group ties with Airbus to explore inflight media-sharing

Germany

Strategy: Höttges: no progress in United Internet talks [p.26]

  • Friends could be re-United, but only after 5G squabble is patched up

Network: TDE turns to Facebook for 'advanced' network planning [p.30]

  • Facebook digs deeper into ecosystem mix
  • Pole dancing in Berlin

Supply chain: DT ties with Huawei under scrutiny in Germany [p.33]

  • We've got it covered, says Höttges
  • Security Innovation Lab opened up

Systems Solutions

Legal and regulatory: T-Sys SA ends court battle with state-owned Transnet [p.36]

  • Disengagement begins

Operations: T-Sys lands in Indonesia [p.38]

  • Optimisation elsewhere

USA

Deals: 'America First' noises get louder against TMUS-Sprint [p.41]

  • Protection or protectionism?
  • Legere sanguine, Son edgy
  • TMUS extends Sprint ties to PCS spectrum
  • Closer -- merger, or no merger

Partnerships: TMUS readies Un-Bank launch [p.47]

Products and services: TMUS ties success of '5G TV' to Sprint merger [p.48]

  • TV on standby

TMUS updates call-blocking services

  • TMUS first to adopt new STIR/SHAKEN standards

Further reading

Index

A

AAA 37
ADC 36, 37
Africa
 - South Africa 53
  --  Black Economic Empowerment (BEE) 37
Algorithms 31
Alphabet
 - Google 17
  -- Android 51
Amdocs 17
Americas
 - Brazil 17, 38
 - United States of America (USA) 6, 8, 17, 23, 24, 33, 34, 40, 42, 43, 46, 49, 51, 53
  --  Commerce Department 43
  --  Department of Justice (DoJ) 42
  --  Federal Communications Commission (FCC) 42, 43, 49, 51
  --  government 51
  --  Securities & Exchange Commission (SEC) 45, 47, 53
  --  States
    ---   Kansas 46
    ---   New York 43, 46
    ---   Washington 46, 49
Apple
 - iOS 51
 - iPhone 43
Asia-Pacific
 - Australia 33, 34, 39, 53
 - China 33, 34, 42, 43, 53
  --  Government 34
    ---  Beijing 34
 - India 17
 - Indonesia 38, 39, 53
 - Japan 38, 42, 43
 - Singapore 38
Atos 22
AT&T 42, 51

B

BMW 20
British Standards Institute (BSI) 34
BT Group 12, 13
 - Openreach 12

C

Choice (Australia) 41, 42
Cisco Systems 18
Comcast Corp. 9, 51
 - NBCUniversal, LLC
CNBC 53
Committee on Foreign Investment in the United States 42
Covata 39
CTIA 51

D

Daimler AG 20
Deutsche Bahn 24
Deutsche Telekom 6, 7, 8, 9, 10, 12, 13, 14, 16, 17, 18, 19, 20, 21, 22, 23, 24, 26, 27, 28, 31, 32, 33, 34, 38, 39, 42, 43, 45, 46, 48, 49, 50, 51, 52
 - Corporate
  -- Headquarters 6, 19, 20, 24, 32, 33, 34, 53
 - Deutsche Telekom Capital Partners
  --  Telekom Innovation Pool 20
   ---   Comfortcharge 19, 20
 - Europe
  -- Austria 10
  -- Croatia (Hrvatski Telekom) 16
  -- Hungary (see Magyar Telekom) 16
  -- Netherlands 10, 14
  -- Poland (Polska Telefonia Cyfrowa/PTC) 17
 - European Aviation Network 24
 - Executives
  --  Andrasi, Judit 16
  --  Blankenburg, Dido 27
  --  Dannenfeldt, Thomas 7
  --  Gievska, Slobodanka 16
  --  Gopalan, Srini 10
  --  Höttges, Timotheus 6, 13, 14, 26, 34
  --  Illek, Christian 7
  --  Jacobfeuerborn, Bruno 20, 52
  --  Kaymer, Ingo 17
  --  Legere, John 43, 46
  --  Molefe, Dineo 37
  --  Pohlink, Claudia 16
  --  Pruchnow, Johannes 27
  --  Schumann, Sebastian 16
  --  Sievert, Mike 48
  --  Wössner, Dirk 9
 - Ex-executives
  --  Munhoz, Ideval 17
  --  Werner, Rolf 17
  --  Germany 9, 20, 26, 27, 28, 30, 31, 32
 - Investments
  --  Magyar Telekom (see separate) 16
  --  OTE (see separate) 13
 - Product and Innovation
  --  Telekom Innovation Laboratories (T-Labs) 16
 - Products and services
  --  Business Marketplace 16
  --  immmr 16
  --  QIVICON 16
  --  T-Mobile TV 48
 - Systems Solutions 7, 17, 35, 53
 - T-Systems 6, 16, 17, 21, 24, 36, 38, 39, 53
  --  South Africa 36, 39, 53
 - Telekom Security 39
 - Technology
  --  5G
  --  haus 22
  --  Toll Collect 8
 - USA 6, 7, 8, 9, 10, 17, 34, 41, 42, 43, 45, 46, 47, 48, 49, 50, 51, 53
Dialogue Communications 16
Dido 27
Drillisch AG 27

E

EADS
 - Airbus 23
eBay
 - PayPal 20
EchoStar Communications Corp.
 - Dish Network 42
Emblaze Group
 - European Telecom 16, 24
Energous Corporation 24
Europe
 - Albania 13
 - Austria 10, 17
 - Croatia 10
 - Czech Republic 10, 38
 - France 52
 - Germany 7, 8, 9, 16, 17, 19, 20, 25, 26, 27, 30, 33, 34, 39, 42, 43, 52, 53
  --  Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 27, 52
  --  Government 20
 - Greece 10
 - Hungary 10, 38
 - Italy 6, 22, 38
 - Netherlands 10, 14, 52
 - Poland 10, 17, 38
 - Romania 10, 16
 - Serbia 13
 - Slovakia 10
 - Spain 38
 - Turkey 41, 42
 - United Kingdom (UK) 13, 17
  --  British Standards Institute (BSI) 34
European Telecommunications Network OperatorsE Association (ETNO) 16, 24
European Union 22, 24, 52
 - European Commission 14, 21, 24, 45
EWE
EWE Tel 26, 27

F

Facebook 30, 31, 32, 53
 - Telecom Infra Project 22, 31
Ford Motor Company 20
 - Jaguar 17
France Télécom 12
 - Orange 13, 18
Fraunhofer Institute 32
Fujitsu 17

G

Gartner Group 37
Global Transit Solutions, LLC 17
GSM Association
 - Mobile World Congress 19
GSM Association (GSMA) 24

H

Hamburg Port Authority 21
Hitachi 17
Hrvatski Telekom (see DT, Croatia) 16
Huawei Technologies 22, 32, 33, 34, 42, 43, 53

I

Inmarsat 24

K

KPN 13, 14

L

Land Rover 17
Liberty Global
 - UPC Austria 8, 10
Liberty Global Inc.
 - UPC Broadband 8, 10
Lufthansa 24

M

Magyar Telekom (see DT) 16
 - Macedonia (Makedonski Telekom/T-Mobile) 16
 - T-Systems Hungary 16
MetroPCS Communications Inc. 45
Microsoft 39
Middle East
Saudi Arabia 41, 42, 43

N

Nokia 21, 22

O

Open Handset Alliance (OHA)
 - Android 51
OTE (Hellenic Telecom. Org. SA, see DT) 13
 - Cosmote
   --  Albania (Telekom Albania) 13

P

Portugal Telecom 39

Q

Qatar Telecom (Qtel) 12
Quantenna Communications 28

S

Samsung 22
SAP 17, 38
Satelindo 39
SK Telecom 24
SOFTBANK CORP. 41, 43
 - Son, Masayoshi 41
Sprint Corporation 6, 8, 34, 41, 42, 43, 45, 46, 48, 49, 53
Symantec 39

T

Technology
 - 2G
  --  GSM 24
 - 4G
  --  Long Term Evolution (LTE) 45, 46
 - 5G 6, 7, 8, 16, 21, 22, 24, 26, 27, 30, 33, 34, 48, 49, 52, 53
 - Fibre 26, 27, 30, 31, 32
 - FTTH 30, 32
 - GPS 32
 - IP 16, 31
 - IPTV 48
 - MMS 17
 - mobile TV 48, 49
 - OTA 24
 - R&D 16, 34
 - RF 24
 - Smartphone 49
 - Spectrum
   --  Advanced Wireless Spectrum 45
 - W-LAN 24, 28
Tele2 10, 14, 52
 - Netherlands 10, 14
Telecom Italia 22
Telefonica Group 18
Telekom Slovenije
 - ONE 50
Telekom Srbija a.d. 13
TeliaSonera 13
Transnet 36, 37, 53

U

United Internet 26, 27, 52
 - 1&1 Internet 27
 - Versatel 27

V

Verizon Communications 42, 45, 51
 - Verizon Wireless 45
Vodafone 16, 17, 18
 - Europe Region
   --  Romania 16
   --  UK 17
Volkswagen AG 20

W

Wipro 17
Worldpay Group 12

Z

ZTE Corp. 33, 34, 42, 43

  • ‘Senior German officials’ get jitters over Chinese suppliers ahead of upcoming 5G auction.
  • Höttges plays down security threats.
  • Huawei opens previously mooted Security Innovation Laboratory in Bonn; aims to assuage security concerns ahead of 5G rollout.

The fresh wave of anti-Chinese supplier sentiment being seen in markets such as Australia and the USA spread to Deutsche Telekom’s (DT) heartland in Germany. In doing so, the Group’s close relationship with Huawei Technologies looked set to be put under closer scrutiny.

According to a report by Reuters, some “senior Germany officials” – unnamed, but apparently from the country’s interior and foreign ministries – are lobbying the government to prevent Chinese suppliers from building 5G infrastructure. An auction of 5G-friendly frequencies is slated for early-2019. Reuters said German officials have exchanged their security qualms with counterparts in Australia and the USA.

There is serious concern”, claimed one anonymous Reuters source, adding that, “if it were up to me, we would do what the Australians are doing”. In August 2018, on the grounds of national security, the Australian government effectively barred Huawei and ZTE from supplying 5G kit to local operators, ahead of the country’s own ‘5G’ auction (Vodafonewatch, #168).

One issue ruffling feathers is China’s National Intelligence Law. Approved in 2017, the law states that Chinese organisations and citizens shall “support, cooperate with, and collaborate in national intelligence work”. The fear is that Huawei and ZTE could be asked to embed ‘back doors’ into equipment, so allowing Beijing access for the purposes of spying or sabotage.

A recent report in The Australian claimed that secret intelligence reports had outlined a case in which Chinese espionage services leaned on Huawei’s staff to get access codes to “infiltrate a foreign network”. The Australian government has repeatedly implied that Huawei and ZTE are not trustworthy custodians of 5G architecture, and that they pose cyber security risks because of the undue influence the Chinese government has over them.

For its part, Huawei issued a fresh round of statements denying all allegations of wrongdoing.

“Huawei’s products and solutions are sold in 170 countries worldwide serving 46 of the top 50 global operators, and meet the highest standards of security, privacy, and engineering in every country we operate globally, including the US. We remain committed to openness and transparency in everything we do, and want to reiterate that no government has ever asked us [to] compromise the security or integrity of any of our networks or devices. Huawei is an employee-owned company and will continue to develop its global business through a significant commitment to innovation and R&D, as well as to delivering technology that helps our customers succeed. ” – Huawei.

We’ve got it covered, says Höttges

Quizzed on a conference call about the expansive supplier role that Huawei plays for DT in Germany, which includes mobile kit, Open Telekom Cloud (public cloud infrastructure), and broadband access (Deutsche Telekomwatch, passim), Chief Executive Timotheus Höttges appeared to knock back any suggestion that there were immediate security or strategic concerns – either on its home turf or abroad.

He stressed that DT was “observing developments globally”, and that a dual-supplier strategy, along with business continuity plans, was in place in all markets. Despite Höttges’ outward calm, however, growing concern about undue foreign influences in the USA is giving handy ammunition to opponents of the proposed merger between T-Mobile US and Sprint (see separate report).

Security Innovation Lab opened up

Huawei opened a Security Innovation Lab on its existing site in Bonn (Deutsche Telekomwatch, #77). The Chinese supplier said the lab will “work closely” with German customers, partners, and research institutions, as well as government and supervisory authorities.

The opening ceremony was attended by Arne Schönbohm, President of the German Federal Office for Information Security (BSI), and Wolfgang Fuchs, City Director of Bonn. Within a collaborative environment, said Huawei, it intends to have “close and regular cooperation” with BSI, focused on new technologies (especially 5G, artificial intelligence, Internet of Things, and smart-cities), standardisation efforts, and the verification of product safety.

Image: Huawei Technologies

Sign up to receive more from Deutsche Telekomwatch

Deutsche Telekomwatch

Information and Insight into Deutsche Telekom, its people, deals and strategy that you won’t find anywhere else

Telco insight for Telco leaders - making information work for you to help you get ahead

Teams that use Deutsche Telekomwatch accelerate and grow their business faster....

WHAT'S INSIDE the FULL REPORTS?

Insider information and analysis that you will not find anywhere else, including:

  • Strategy and objectives.
  • Vendor partnerships.
  • People movements.
  • Deals and trends.
  • Industry and analyst events/activity.

"I regularly find current activities I was not aware of” - VP, Deutsche Telekom

CRITICAL AREAS of focus include:

  • Challenges/Opportunities.
  • Disruption and change.
  • Strategy and objectives.
  • Contracts and deals.
  • Innovation.
  • OPEX/capex.
  • Technology developments.

“Deutsche Telekomwatch gives me a global vision of what is coming and what is happening now... and if this could affect me” - Business Manager, Ingram Micro

EXCLUSIVE INSIGHTS uncovered to help you:

  • Get ahead of rivals and colleagues.
  • Open doors, find more deals, faster.
  • Go native as the expert on DTAG.

"Deutsche Telekomwatch provides me with a comprehensive overview of important DT activities within a single source, saving me time having to search for it” - Account Director, Juniper

Click here to download a sample to evaluate.