Deutsche Telekomwatch – release #83

16 May 2019

Featured insight: Q1 FY19

Timotheus Hottges

  • Deutsche Telekom kept up momentum with a solid set of results for the three months to 31 March 2019, contrasting with the struggles of key European rivals.
  • T-Mobile US remained the star, reporting double-digit revenue and earnings growth, but with rockiness in the Sprint–TMUS deal clouding the results.
  • DT’s ballooning outlay in the German 5G auction increased focus on the Group’s rising debt pile, with asset tie-ups on the agenda to reduce cash pressure.

Get complete coverage, plus much more, in the full May release – click to get access.

Image: Deutsche Telekom


Deutsche Telekomwatch
This release
: #83
May 2019: 54pp
Releases/year: 10+
Click for more details of this release

EXECUTIVE BRIEF

MANAGEMENT UPDATE

Q1 FY19: Tim maintains Zen despite tension in airwaves [p.6]

Management Update: Headline data: a team effort but TMUS still talismanic [p.7]

  • Segments getting on the same page
  • Table: Deutsche Telekom, financial summary, Q1 FY19
  • User retention call-to-action
  • Table: Deutsche Telekom, customer summary, Q1 FY19
  • US powers on; flux in Germany; T‑Sys yet to prove execution

GROUP

Deals: DT creates new central unit to oversee tower reset [p.12]

  • DT playing long game on asset sale

Partnerships: MobiledgeX expands to Canada [p.15]

Edge of tomorrow

People [p.16]

  • Table: People movement highlights

Technology & Innovation: Long-range drone JV comes on radar [p.18]

  • DT ditches solo missions for formation flying

DT highlights further mmWave tests with Ericsson [p.20]

  • Microwave fare for time/cost-constrained DT

GERMANY

Legal & Regulatory: DT bites the bullet in German 5G auction [p.23]

  • 5G business model up in air
  • Huawei still on the 5G dance floor

Last‑mile fee hike proposed [p.25]

  • Rivals are not impressed
  • Playing the fibre game

EUROPE

Bosnia & Herzegovina: Ericsson Nikola Tesla lands another core and RAN win [p.31]

Greece: OTE set to meld sales and services functions [p.33]

  • Europe: earnings growth still on default

SYSTEMS SOLUTIONS

Strategy: T‑Sys hangs up on user support [p.37]

Partnerships: Part of the plan [p.38]

  • Table: T‑Sys's “re‑defined” portfolio structure
  • Mainframe and WAN refreshes still in pipeline

USA

Deals: TMUS-Sprint deal on knife edge; mixed signals from DoJ [p.41]

  • WSJ whiplash
  • Question marks lead to Sprint spin-out suggestions
  • Political football
  • Legere spits at “haters”

Products & Services: TVision Home flickers into life; bundling bigger picture [p.46]

  • Un‑Carrier pay-TV
  • The price is right?
  • Fuzzy picture without New T-Mobile tuning
  • Broadband broadside

FURTHER READING

INDEX

A

Africa 17

Alphabet

 - Google 17

Android 47

 - YouTube 47

Amazon.com Inc. 48, 51

Americas

 - Canada 15, 49

 - North America 7

 - United States of America (USA) 6, 7, 8, 14, 16, 19, 32, 40, 51

  --  Department of Justice (DoJ) 41, 42, 43, 51

  --  Federal Communications Commission (FCC) 41, 43, 45

  --  government 45

  --  Securities & Exchange Commission (SEC) 14, 41

  --  States

   ---   Califormia 15

   ---   Kansas 44

   ---   New York 47

   ---   Philadelphia 47

   ---   Washington 41, 44, 47

Apple 45

 - iOS 47

Aryaka 14

Asia-Pacific 21

 - China 21, 24, 43

 - India

  --  Licence Circles

   ---   Himachal Pradesh 19

 - Singapore 21

AT&T 35, 43, 45, 46

Axiata Group Bhd (TM International)

 - Cambodia (TM International (Cambodia) Co. Ltd./hello) 51

B

British Standards Institute (BSI) 24

BT Group 14

 - EE 14

C

Capgemini 37

China Unicom 21

Comcast Corp. 45, 46

 - NBCUniversal, LLC

CNBC 42

Commerzbank AG 16

Cyfrowy Polsat SA 35

D

Deutsche Post 19, 37

Deutsche Telekom 6, 7, 8, 9, 10, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 23, 24, 26, 27, 28, 31, 32, 33, 34, 35, 37, 38, 39, 42, 43, 44, 45, 46, 47, 48, 49, 50

 - Corporate

  --  Headquarters 43

 - Deutsche Funkturm 12, 28, 34

 - Deutsche Telekom Capital Partners 14, 16

  --  Deutsche Telekom Strategic Investments 19

  --  Fastly (see separate) 14

  --  Next Generation Enterprise

  --  Network Alliance (ngena) 21, 39

  --  Spearhead 19

  --  Telekom Innovation Pool 15

   ---   Comfortcharge 19, 34

   ---   MobiledgeX 15, 19, 49

   ---   tooz technologies 19

 - Digital Business Unit 19

 - Europe

  --  Austria 9, 13, 32

  --  Bulgaria (see OTE) 33

  --  Croatia (Hrvatski Telekom) 17, 31, 34, 50

  --  Czech Republic 16, 17, 34

  --  Greece (see OTE) 10, 34

  --  Hungary (see Magyar Telekom) 10, 16, 34

  --  Montenegro (see Magyar Telekom) 31, 34

  --  Netherlands 9, 12

  --  Poland (Polska Telefonia Cyfrowa/ PTC) 35

  --  Slovakia (Slovak Telekom/T-Mobile) 16, 34

  --  UK (EE) 14

 - Executives

  --  Al Saleh, Adel 37, 38

  --  Blankenburg, Dido 28

  --  Clauberg, Axel 39, 50

  --  Drake, Nicholas 16, 17

  --  Frause, Max 17

  --  Freier, Jon 17

  --  Gary, Robert 17

  --  Hottges, Timotheus 6, 13, 24, 38

  --  Illek, Christian 38

  --  Legere, John 41, 46, 51

  --  Obaidi, Arash 17

  --  Ray, Neville 47

  --  Seaton, Sean 16

  --  Sievert, Mike 47

  --  Staneff, Matt 17

  --  Wossner, Dirk 27

 - Ex-executives

  --  Binder, Jeff 17

  --  Obermann, Rene 17

  --  Rathgeber, Rainer 17

 - Germany 8, 9, 10, 15, 25, 26, 27, 28, 32, 33, 49

  - Investments

  --  Magyar Telekom (see separate) 10, 16, 34

  --  OTE (see separate) 33, 34, 50

 - Products and services

  --  T-Mobile TV 51

 - Systems Solutions 8, 17, 36, 50

  --  T-Systems 8, 14, 17, 37, 50

   ---   Slovakia 17

 - Technology

  --  TeraStream 21

 - T-Mobile Infra 12

 - T-Mobile International 17

 - USA 6, 7, 8, 10, 16, 17, 35, 41, 42, 43, 44, 45, 46, 47, 48, 51

Deutsche Telekom Capital Partners 14, 16

DHL Worldwide Express 19

Dido 28

Drillisch AG 23, 24

E

EADS

 - Airbus 17

EchoStar Communications Corp.

 - Dish Network 43, 46

Enio 19

Ericsson 17, 20, 24, 31, 49, 50

 - Croatia (see Ericsson Nikola Tesla) 31, 50

Ericsson Nikola Tesla d.d. (see Ericsson) 31

Ernst & Young 14

Europe

 - Albania 10, 33, 34

 - Austria 18, 32, 34, 50

 - Bulgaria 34

 - Croatia 31

 - Czech Republic 16, 17, 32

 - Germany 6, 8, 9, 10, 12, 13, 16, 17, 18, 19, 22, 23, 24, 25, 26, 27, 28, 34, 37, 39, 43, 49

  --  Bundeskartellamt (Federal Cartel Office) 18, 39

  --  Bundesnetzagentur (BNetzA, or German Federal Network Agency) 24, 25, 49

  --  Bundesnetzagentur fur Elektrizitat, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 24, 25, 49

 - Greece 18, 33, 34, 50

 - Montenegro 31, 34, 50

 - Netherlands 12, 18, 32

 - Poland 32, 35, 50

 - Romania 10, 33, 34

 - Spain 17

 - Switzerland 15, 17, 37

 - United Kingdom (UK) 14

  --  British Standards Institute (BSI) 24

European Union 25

 - European Commission 25, 41

EWE

 - EWE Tel 27, 28

F

Facebook 15

 - Telecom Infra Project 15, 39

Fastly 14

France Telecom

 - Orange 14, 16, 24, 35

 - Poland (see Telekomunikacja Polska) 35

 - UK (see EE, DT) 14

G

Goldman Sachs 14

GSM Association

 - Mobile World Congress 19

H

Hewlett-Packard 19

Hrvatski Telekom (see DT, Croatia) 31, 34, 50

Huawei Technologies 23, 24, 35, 43, 49

I

IBM 39

Intel 15

K

KPMG International 14

L

LG Electronics 45

Liberty Global

 - UPC Austria 9, 10, 32

Liberty Global Inc.

 - Unitymedia GmbH 27

 - UPC Broadband 9, 10, 32

  --  Germany (Unitymedia) 27

M

Magyar Telekom (see DT) 10, 16, 34

 - Montenegro (Crnogorski Telekom) 31, 34

Market segments

 - Mobile virtual network operator (MVNO) 42

MetroPCS Communications Inc. 44, 51

Microsoft 17

Midas

 - Aero2 35

Middle East 17

N

Netflix 47

Niantic 15

O

oneM2M 32

Open Handset Alliance (OHA)

 - Android 47

OTE (Hellenic Telecom. Org. SA, see DT) 33, 34, 50

 - Bulgaria (Globul) 33

 - Cosmote 10, 34

  --  Albania (Telekom Albania) 34

 - Greece 10, 34

  --  Germanos 33

  --  Hellas Sat 33

P

P4 sp. z o.o. (Play) 35

PCCW 21

Philippine Long Distance Telephone Co. (PLDT) 21

Phones4U 14

Polkomtel 35

 - Plus GSM 35

Polsat 35

PricewaterhouseCoopers 14

R

Reliance-Anil Dhirubhai Ambani Group

 - Reliance Communications (RCom) 21

Robin Radar Systems 19

Roche 17

Rohde & Schwarz 19

RWTH Aachen University 19

S

Samsung 15, 45

SAP 17, 38

Sferia SA 35

SK Telecom 15

Slovak Telekom (see DT, Slovakia) 16, 34

SOFTBANK CORP. 43

Spearhead 19

Sprint Corporation 6, 8, 17, 35, 41, 42, 43, 44, 46, 48, 51

Squarehead Technology 19

T

Target Corporation 38

Technology

 - 2G

  --  CDMA 35

  --  GSM 35

 - 4G 15, 43, 46, 48

  --  Long Term Evolution (LTE) 35, 48

 - 5G 6, 10, 15, 17, 20, 23, 24, 25, 35, 42, 43, 44, 46, 48, 49

 - DVR 47

 - Ethernet 27, 28

 - Fibre 20, 25, 26, 27, 28, 46

 - IMS 31

 - IP 9, 21, 31

 - IPTV 46

 - LAN 27, 28

 - Linux 21

 - MPLS 39

 - Narrowband Internet of Things (NBIoT) 32

 - .Net 28

 - RAN 21, 31

 - Smartphone 37, 45

 - Spectrum 23

  --  800 MHz 35

 - WAN 14, 21, 39

Tele2 12

 - Netherlands 12

Telecom Italia 24

Telefonica Group 7, 14, 23, 27

 - Europe

  --  UK 14

Telekom Austria 32

 - Austria

  --  A1 32

Telenor ASA 16

 - Hungary 16

Telus Corporation 15, 49

Tesla 50

tooz technologies 19

Twitter Inc. 41

U

USA

 - Communications Workers of America (CWA) 43

V

Value-added services 35

Verizon Communications 43, 45

Viacom Inc. 48, 51

 - MTV Networks 48

Vodacom Group

 - Gateway Communications 32

Vodafone 7, 10, 14, 23, 24, 25, 26, 27

 - Europe Region

Germany 10, 23, 26

W

Warburg Pincus LLC 17

Top stories from Deutsche Telekomwatch #83

DT creates new central unit to oversee tower reset

The new DT entity will manage tower assets in Germany and the Netherlands ahead of a prospective strategic infrastructure deal. Read more…

DT’s long-range drone JV comes on radar

DT reportedly expanded collaboration with Germany’s state-owned air traffic control operator on commercially operated drones. Read more…

DT highlights further mmWave tests with Ericsson

DT remains keen on microwave-based 5G backhaul, highlighting further work with Ericsson on microwave link development. Read more…

DT Group: OTE set to meld sales and services functions

OTE is reportedly preparing a major operational revamp to reduce overlapping functions as part of DT’s drive to cut regional costs. Read more…

T-Sys hangs up on user support

T-Systems’ IT user support business is the latest area to be terminated as part of the division’s ongoing business overhaul. Read more…

Featured insight:
Deutsche Telekomwatch #83 highlights

TMUS: Are you with us?

  • A management reshuffle at TMUS saw Home & Entertainment Head Jeff Binder depart, a shift of focus for senior digital marketing figure Nicholas Drake, and a change at the top of TMUS’ Metro by T Mobile prepaid operation.
  • T‑Mobile Austria became “Magenta Telekom in a rebrand following on from its 2018 takeover of UPC Austria. The move reduces the number of markets where DT retains the T‑Mobile brand to four.
  • Recent reports suggest a for‑sale sign has been mounted in front of Telekom Romania, with OTE entering a phase of significant operational restructuring following the pending sale of Telekom Albania.

Deutsche Telekomwatch subscribers can access these full stories, and much more, in May’s release – click to get access.

Image: T-Mobile US

Also within Deutsche Telekomwatch #83

54 pages of perspectives on Deutsche Telekom’s key people, deals and strategy that you can’t get anywhere else…

  • 28 people movements uncovered, including coverage of the ongoing TMUS management reshuffle;
  • 28 vendors featured, including coverage of Ericsson’s tie-ups across the Group;
  • 7 deals analysed, including further partner acquisitions for DT-backed ventures Fastly, Mobiledgex and ngena.

…and much more! Click to get access to the full May release of 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

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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.

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