IoT


Deutsche Telekomwatch
This release
: #81
March 2019: 76pp
Releases/year: 10+
Click for more details of this release

EXECUTIVE BRIEF

MANAGEMENT UPDATE

Q4 FY18: USA-fuelled DT gains more ground [p.6]

  • Headline data: targets hit
  • Spend: growth doesn’t come cheap
  • Table: Deutsche Telekom, financial summary, FY18
  • Pushing the boundaries
  • Table: Deutsche Telekom, capex and spectrum investment development, FY12–18
  • Guidance: DT’s European reboot to get real
  • Table: Deutsche Telekom, financial development picture, FY13–FY21

GROUP

Deals: DT takes high-altitude punt on comms-in-the-sky player [p.14]

  • Group looks into thin air for network gains
  • A new layer for Integrated Networks Strategy

Partnerships: DT seeks to widen IoT presence with new ‘ecosystem’ [p.17]

  • DT unveils IoT Solution Optimizer
  • Table: DT’s “global IoT ecosystem”
  • Less than an eSIM: new integrated platform for low‑cost IoT devices

People [p.21]

  • Table: People movement highlights

Supply Chain: DT quiet as Huawei pressure eases (slightly) in Germany  [p.25]

  • Pragmatism versus suspicion
  • DT walking a political tightrope
  • Calming measures, home and abroad
  • The US dimension: Höttges goes to Washington
  • End-game approaching in Sprint–TMUS battle

Technology and Innovation: DT says game on for 5G; first antenna shoots appear [p.31]

  • More 5G trials in Germany
  • Investment catch-up
  • DT takes 5G on the MWC dancefloor

DT gains a friend in the ULE Alliance [p.35]

  • DT and Orange remain homies

GERMANY

Q4 FY18: TDE staying the course on cost-cutting [p.39]

  • Table: Deutsche Telekom, Germany area financial summary (as reported), FY18
  • Table: Deutsche Telekom, Germany area operational indicators, Q4 FY18
  • €750m savings still the main prize
  • IP transplant will be worth the wait

Strategy: TDE sounds emergency alarm on 5G auction [p.41]

  • Fuzzy roaming rules
  • First-mover disadvantage

Commercial: Political cover‑up [p.44]

Partnerships: Drillisch in the game [p.45]

  • Table: Not playing by the BNetzA rulebook

Network: Reply responds to Access 4.0 call [p.47]

  • Has DT’s Four Play been a bit full-on?

EUROPE

Q4 FY18: Gopalan’s regional refresh gathers momentum [p.50]

  • Table: Deutsche Telekom, Europe area financial summary (as reported), FY18
  • Table: Europe segment strategic and financial objectives, FY17–FY21
  • Bugs in Poland and Romania suggest reboot hasn’t worked completely
  • Table: Deutsche Telekom, Europe area revenue by territory (adjusted), FY18
  • Recovery building, but not yet signed off

Austria: TMAT eyes 5G jumpstart after auction gains [p.53]

  • 5G launch “within weeks”
  • A prelude to the main event
  • Table: Deutsche Telekom’s Europe spectrum agenda FY19–20

Czech Republic: CTÚ makes moves towards 5G auction [p.55]

  • Been there, done that
  • Huawei matters

SYSTEMS SOLUTIONS

Q4 FY18: “Solid” year for T‑Sys but change still the focus [p.58]

  • Table: Deutsche Telekom, Systems Solutions financial summary (adjusted), FY18
  • Go-to-market gains
  • Table: T‑Sys’ “re-defined” portfolio structure

USA

Q4 FY18: TMUS powers on but DT eyes yet more gains [p.63]

  • Table: Deutsche Telekom, US area financial summary (as reported), FY18
  • Table: Deutsche Telekom, US area operational indicators, Q4 FY18
  • America first

Strategy: TMUS gears up for 5G; unlimited data plans in store [p.65]

  • TMUS won’t forget its Un-Carrier roots
  • 600MHz on the move
  • Sprint key to TMUS’ bid for 5G gold

FURTHER READING

INDEX

Symbols

3rd Generation Partnership Project (3GPP) 68

A

Affirmed Networks 15, 16

Africa 22

Allianz 16

Alphabet

 - Google 14, 15, 36, 37, 67

  --  Android 56

Altair Semiconductor 19

Amazon.com Inc. 15, 36, 69

Americas

 - Brazil 22

 - Canada 27, 29, 44

 - Latin America 22

 - Mexico 22

 - North America 21, 23

 - United States of America (USA) 6, 7, 10, 11, 12, 15, 18, 23, 25, 26, 27, 29, 31, 33, 36, 52, 56, 61, 69, 73

  --  Department of Justice (DoJ) 30, 69

  --  Federal Communications Commission (FCC) 30, 69, 71

  --  government 29

  --  States

   ---   Califormia 68, 69

   ---   Kansas 67, 68, 71

   ---   New York 68

   ---   Washington 29

Apple

 - iOS 56

 - iPhone 68

Asia-Pacific 20, 25, 31, 34, 61

 - Australia 27, 28

 - China 16, 23, 25, 26, 27, 28, 29, 30, 37, 56

  --  Government 25

 - India 47, 51

  --  Licence Circles 68

 - New Zealand 27, 28, 71

 - Singapore 61

 - South Korea 20, 33, 34

Atos 36

AT&T 37, 52, 66, 67, 68, 69

Axiata Group Bhd (TM International)

 - Cambodia (TM International (Cambodia) Co. Ltd./hello) 36

B

Blackstone Group 16

British Broadcasting Corp. (BBC) 71

British Standards Institute (BSI) 25, 26, 27

Broadcom 47

C

Český Telekomunikační Úřad (ČTÚ) 55, 72

China Unicom 37

Chordant 18

Committee on Foreign Investment in the United States 30

D

Deutsche Bank 16

Deutsche Telekom 6, 7, 8, 9, 10, 11, 12, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 25, 26, 27, 28, 29, 31, 32, 33, 34, 35, 36, 37, 39, 40, 41, 42, 43, 44, 45, 47, 48, 50, 51, 52, 54, 55, 56, 58, 59, 60, 61, 65, 66, 67, 68, 69, 70, 71, 72, 73

 - Deutsche Telekom Capital Partners 15, 16, 21

 - Deutsche Telekom Strategic Investments 16

  --  Mojio (see separate) 15, 56

  --  Next Generation Enterprise Network Alliance (ngena) 14, 20

  --  Telekom Innovation Pool 14, 34, 47

   ---   BENOCS 15

   ---   Comfortcharge 14

   ---   MobiledgeX 14, 33, 71

   ---   Rtbrick 15

   ---   Stratospheric Platforms 14, 15

 - Europe 50, 51, 52

  --  Austria 23, 28, 50, 53, 54, 72

  --  Croatia (Hrvatski Telekom) 14, 22

  --  Czech Republic 21, 22, 28, 34, 55, 56

  --  Hungary (see Magyar Telekom) 22, 34, 37

  --  Netherlands 10, 12, 14, 28, 36, 52

  --  Poland (Polska Telefonia Cyfrowa/PTC) 23, 28, 51, 56

  --  Slovakia (Slovak Telekom/T-Mobile) 21, 22

  - European Aviation Network 15

 - Executives

  --  Al Saleh, Adel 59

  --  Arnold, Heinrich 22

  --  Bierwirth, Andreas 54

  --  Calian, John 20

  --  Clauberg, Axel 22, 37

  --  Dannenfeldt, Thomas 6

  --  Daub, Daniel 14

  --  El Hattachi, Rachid 14

  --  Fleutiaux, Francois 60

  --  Gopalan, Srini 51

  --  Hischke, Sven 21

  --  Hollaender, Stefan 22

  --  Höttges, Timotheus 6, 10, 16, 29, 40, 41, 58, 72

  --  Illek, Christian 6, 39, 42, 50, 60

  --  Kopf, Wolfgang 43

  --  Legere, John 30, 67, 69

  --  Lehner, Dr. Ulrich 44

  --  Lesser, Andy 22

  --  Nemat, Claudia 31, 32, 33, 48

  --  Ray, Neville 65

  --  Schröder, Lothar 44

  --  Streibich, Karl-Heinz 44

  --  van der Walt, Mardia 21

  --  Wössner, Dirk 40

 - Ex-executives

  --  Munhoz, Ideval 22

  --  Obermann, Rene 7

 - Germany 7, 8, 9, 11, 21, 25, 26, 27, 28, 32, 33, 34, 39, 40, 41, 42, 43, 44, 45, 47, 48, 61

 - Investments

  --  Magyar Telekom (see separate) 22, 23, 34, 37

 --  OTE (see separate) 51, 52, 55

 - Product and Innovation

  --  hubraum 32

  --  Telekom Innovation Laboratories (T-Labs) 20, 22

 - Products and services

  --  IoT Solution Optimizer 18, 70

  --  nuSIM 19, 70

  --  QIVICON 35

  --  Smart Speaker 35, 36

 - Strategy

  --  Connected Home 35

 - Systems Solutions 8, 10, 12, 22, 57, 58, 73

 - Telekom IT 10, 12

 - T-Systems 7, 17, 21, 22, 23, 37, 58, 61

  --  Detecon 22

  --  Deutschland 23

  --  Slovakia 23

  --  South Africa 23

  --  Telekom Security 22

  --  USA 6, 7, 8, 10, 11, 18, 23, 25, 29, 30, 33, 52, 65, 66, 67, 68, 69

Deutsche Telekom Capital Partners 15

DLA 20

Drillisch AG 45

DSP Group 35, 71

E

EADS

 - Airbus 15

Emblaze Group

 - European Telecom 20

EMC

 - VMware 61

Ericsson 25, 30, 32, 67, 69

Europe

 - Albania 50, 54, 55

 - Austria 7, 15, 18, 22, 31, 44, 51, 52, 53, 54, 55, 72

  --  Rundfunk und Telekom Regulierungs (RTR) 53, 54, 72

 - Central & Eastern Europe (CEE) 23

 - Croatia 18, 22, 52, 54, 55

 - Czech Republic 15, 18, 44, 52, 54, 55, 56, 72

 - Denmark 32

 - Finland 32

 - France 16, 32, 35, 36, 44

 - Germany 7, 8, 9, 10, 12, 15, 16, 18, 21, 22, 25, 26, 27, 31, 32, 33, 34, 38, 39, 40, 41, 42, 43, 44, 45, 48, 52, 53, 54, 55, 56, 61, 71, 72

  --  Bundesnetzagentur (BNetzA, or German Federal Network Agency) 25, 26, 27, 41, 42, 43, 44, 45

  --  Government 26

 - Greece 31, 51, 52, 54, 55

  --  Hellenic Telecoms and Post Commission (EETT) 55

 - Hungary 18, 22, 23, 31, 34, 52, 54, 55

 - Italy 47

 - Macedonia 22, 54, 55

 - Netherlands 7, 18, 22, 31, 32, 36, 54, 55, 61

 - Poland 15, 18, 31, 32, 51, 52, 54, 55, 56, 72

 - Romania 51, 52, 54, 55

 - Scandinavia 19, 56

 - Slovakia 18, 52, 54, 55

 - Spain 45

 - Switzerland 20, 23

 - United Kingdom (UK) 14, 15, 27, 32, 36, 71

  --  British Standards Institute (BSI) 25, 26, 27

European Telecommunications Standards Institute 20

European Union 16, 34, 55

 - European Commission 55, 72

ExxonMobil Corp. 44

F

Facebook 22, 37, 69

 - Telecom Infra Project 22, 37, 48

France Télécom

 - Orange 21, 35, 36, 71

G

GCSB, New Zealand 28

GSM Association

 - Mobile World Congress 31, 32, 33, 34, 36, 37, 43, 71

GSM Association (GSMA) 28, 71

H

Hellman & Friedman 16

HiSilicon 19

Hrvatski Telekom (see DT, Croatia) 14, 22

Huawei Technologies 25, 26, 27, 28, 29, 30, 32, 33, 56, 71

I

IBM 22, 23

Inmarsat 15

Intel 35, 37, 67

Intellectual Ventures 69

L

LG Electronics 33, 66

Liberty Global

 - UPC Austria 7, 50, 52, 54

Liberty Global Inc.

 - UPC Broadband 7, 50, 51, 52, 54

M

Magyar Telekom (see DT) 22, 34, 37

 - Executives

  --  Mattheisen, Christopher 23

 - Macedonia (Makedonski Telekom/T-Mobile) 52

 - T-Systems Hungary 22

Market segments

 - Mobile virtual network operator (MVNO) 44, 45, 61, 67

 - Multinational corporations (MNCs) 17

Microsoft 17, 23, 61

Middle East 22

 - Iran 29

 - Israel 32

 - Qatar 23

Mojio 15, 56

Mozilla Foundation 69

Mozilla Corporation 69

N

Nokia 30, 32

Nomura 20

Nuance Communications Inc. 36

O

Omnicom

 - DDB 43

Open Handset Alliance (OHA)

 - Android 56

Osram 34

OTE (Hellenic Telecom. Org. SA, see DT) 51, 52

 - Cosmote

  --  Albania (Telekom Albania) 51, 52

P

Panasonic 35

Philippine Long Distance Telephone Co. (PLDT) 20

Premiere AG 71

Q

Qualcomm 16, 19, 34

Quectel Wireless Solutions 19, 70

R

Reliance-Anil Dhirubhai Ambani Group

Reliance Communications (RCom) 51

S

Salesforce 22

Samsung 18, 19, 33, 66, 69, 71

SAP 17, 58, 60, 61

Scout24 16

Scout24-Gruppe 16

 - AutoScout24 16

Sequans 18, 19, 70

Siemens AG 16

Sierra Wireless 19

SK Telecom 33, 71

Slovak Telekom (see DT, Slovakia) 21, 22

SOFTBANK CORP. 29

Software AG 44

Sprint Corporation 6, 7, 10, 11, 25, 29, 30, 37, 66, 67, 68, 71, 73

Swisscom 20

T

Target Corporation 60

Technology

 - 2.5G 67

 - 2G 67

  --  CDMA 56

  --  GSM 28

 - 3G

  --  Evolved HSPA (HSPA+/I-HSPA)

  --  MIMO 32

 - 4G 27, 28, 68

  --  Long Term Evolution (LTE) 10, 18, 19, 34, 66, 68, 69

 - 5G 7, 10, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 41, 42, 43, 45, 48, 53, 54, 55, 56, 65, 66, 67, 68, 71, 72, 73

 - Fibre 32, 40, 48

 - Fixed-mobile convergence (FMC) 51

 - FTTH 40

 - IP 14, 22, 37, 40

 - LTE-Vehicular (LTE-V) 34

 - Mozilla 69

 - Narrowband Internet of Things (NB-IoT) 18, 19

 - OpenStack 48

 - Personal computer 65, 73

 - RAN 25, 28, 32, 37

 - R&D 15, 36

 - SIM 19, 70

 - Smartphone 19, 33, 56, 66, 69

 - SMS 19

 - Spectrum 32, 44, 55, 67

  --  700 MHz 54, 55, 67

  --  800 MHz 54

  --  1800 MHz 54

  --  2100 MHz 54

  --  2300 MHz 54

  --  2600 MHz 54

 - ultra-low energy (ULE) 35, 36, 71

 - VDSL 40

 - WAN 20

 - W-LAN 37, 56, 61

Tele2 7

 - Netherlands 7

Telefonica Group 41, 44, 45, 72

 - Europe 55

Telekom Austria 22, 53

 - Austria

  --  A1 22, 53

Telit 19

Telus 15

Total S.A.

 - Saft Groupe 18

U

United Internet 45

V

Value-added services 45

Venfin Ltd

 - Tracker Network (Proprietary) Limited (TRACKER) 56

Veolia Environnement SA 18

Verizon Communications 52, 66, 67, 68, 69

Visa 20

Vodafone 16, 17, 28, 34, 41, 44, 55, 61, 72

 - Europe Region

  --  Czech Republic 55

  --  Germany 41, 61

X

Xiaomi 23

Z

ZTE Corp. 25, 26, 28, 29, 30, 56

  • Latest schemes signal desire to extend IoT focus beyond large enterprises.

Deutsche Telekom (DT) — perhaps with a touch of hyperbole — presented what it described as the “first global IoT ecosystem”; a grouping of InternetofThings (IoT) technology and services specialists that will work with the Group on client projects.

The “strong network of globally recognised IoT players” — which currently numbers 31 partners — cuts across IoT battery, chipset, device, and module sellers, as well as consultancy, platform, and service providers.

While clearly tied in with the Group’s “BigIoT” strategy, the collective does not include key strategic partners that have worked with T‑Systems’ (T‑Sys) IoT unit on major (and often multinational) enterprise projects, such as Microsoft, Roambee Corporation, and SAP (Deutsche Telekomwatch, #71 and #74). Instead, the “ecosystem” appears directed at lower-level corporate segments, such as the “mid-market” layer where NatCos are seeking to generate enterprise ICT growth (Deutsche Telekomwatch, #74 and passim).

DT did not release any details on how the group will be run — including any commercial or financial terms that underpin its relationships. Nor did it go into any detail on its future ambitions. It is therefore not clear how it differs from numerous other operator IoT ecosystems, such as arch-rival Vodafone’s IoTPartnerNetwork (which numbered 95 members, as of February 2019). DT itself has made multiple IoT ecosystem and developer network plays in the past.

DT said it was open to accepting additional mobile network operators and suppliers to support the network.

Table: DT’s “global IoT ecosystem”.

Category

Partners

 

 

IoT chipset vendors

Altair Semiconductor

HiSilicon

MediaTek

Samsung Electronics

Sequans

 

IoT module original equipment manufacturers

Advantech

Fibocom

Foxconn

Gemalto

Lierda

Murata

Neoway

Quectel

Ruijie Networks

Sierra Wireless

SIMCom

Telit

Teltonika

u‑blox

 

IoT device suppliers

CompoTEK

DIGI International

Tekmodul

LUPUS-Electronics

Nedap Mobility Solutions

Sercomm

Battery manufacturer

Saft

 

 

IoT platform with oneM2M service layer

Chordant

 

 

IoT consultancy, acceleration, and prototyping

hub:raum

Detecon

ORBIT IT‑Solutions

IoT service provider

Veolia

 

 

Source: Deutsche Telekom.

DT unveils IoT Solution Optimizer

The grouping was unveiled as DT launched a new offering dubbed the “IoTSolution Optimizer”, a scalable online tool to provide technical consultancy and other services for enterprise clients deploying IoT solutions.

The Optimizer is currently focused on applications based on NarrowbandIoT (NB‑IoT) networks, and is said to bring together solution designs across application, hardware, and network elements. The service is currently available in eight of DT’s markets, comprising Austria, Croatia, Czech Republic, Germany, the Netherlands, Poland, Slovakia, and the USA — with Hungary to be added in the “coming months”. DT added that support for LTE‑for‑Machines (LTE‑M) technology will be introduced in the quarter to 30 September 2019, although its LTE‑M footprint is currently more restricted than with NB‑IoT.

DT has so far rolled out NB‑IoT in nine European markets and the USA, where T‑Mobile US claimed to have recently taken its NB‑IoT network “nationwide” (Deutsche Telekomwatch, #75). LTE‑M was live in four DT territories — Austria, Germany, Poland, and the Netherlands — at 31 December 2019, but the operator has indicated plans to extend LTE‑M to “several” European markets by mid‑2019, in order to benefit from the different use‑cases enabled by the higher-bandwidth technology (Deutsche Telekomwatch, #79).

The Optimizer offering is said to be aimed at helping businesses to improve the performance of IoT applications in sectors including asset tracking, security, and smart‑cities. Users can either model their own custom designs, or try an off‑the-shelf IoT offering. They are then able to test a “virtual twin” of the product they intend to deploy.

“DeutscheTelekom’s IoT Solution Optimizer is the first service which pairs technical IoT consultancy with a comprehensive solutions shelf. It is extremely easy to use, offering reliable guidance and exceptional choice throughout the process. Our clients can now make fact-based decisions before rolling out their intended IoT solutions, significantly improving time‑to-market, while minimising cost and risk.
— Ingo Hofacker, Senior Vice‑President of IoT, T‑Sys.

Less than an eSIM: new integrated platform for low‑cost IoT devices

Also tied with the new ecosystem was DT’s announcement of the development of nuSIM, a new integrated SIM card designed specifically for IoT devices.

Created with the help of a wide range of technology partners, the SIM card is said to be “perfect for use” in devices that are connected by NB‑IoT. The operator said nuSIM can also be adapted for networks based on LTE‑M, “if required”.

nuSIM is based on open specifications to ensure interoperability and is specifically designed for low‑cost devices used in mobile IoT applications with a long life‑span, including asset trackers and motion and temperature sensors. The product is expected to be available in the second half of 2019.

The primary objective of the nuSIM product is to integrate traditional SIM card functionality with the chipset, simplifying and reducing the cost of IoT devices, speeding up the implementation process, saving space in a device, and using much less power. It sounds similar to the embedded SIM (eSIM) used in smartphones as well as partner devices such as smart watches and fitness trackers, but DT went to some pains to explain that the two are not the same.

In a blog post attributed to Daniel Kunz, Digital Marketing Expert at T‑Sys, DT said an eSIM contains all the functions of a conventional SIM card, and is therefore too complex and costly for the needs of simpler and cheaper IoT devices. “A smart-meter, such as a networked water or electricity meter, for example, might send a tiny data packet into the network once-a-day. No voice or SMS functions are required”, Kunz said.

DT has been working with 13 solution partners on nuSIM, some of which are also part of the new IoT “ecosystem”:

  • For chipsets: Altair Semiconductor, Commsolid/Goodix, HiSilicon, Nordic Semiconductor, Qualcomm Technologies, Samsung Electronics, Sequans Communications.
  • For modules: Quectel Wireless Solutions, Sierra Wireless, Telit, u‑blox, Nordic Semiconductor.
  • For digital security: Giesecke+Devrient Mobile Security, which is providing the AirOn eSIM management platform for nuSIM‑based devices.

Image: Deutsche Telekom

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