Deutsche Telekomwatch Report #5 November-December 2011 Snapshot
4 January 2012
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Table of Contents
1 Executive brief
4 Q3 FY11 management update
4 Group “stands ground” amid macro woes
4 Forecasts reaffirmed; new efficiency drive planned for 2012
5 Table 1. Deutsche Telekom, financial summary, Q3 and 9m FY11
6 Expectations suitably managed, so far
6 Table 2. Deutsche Telekom, operational indicators, Q3 FY11
7 Germany — iPhone release gap hits revenue, but signs of a fight back
7 Europe — sales reduction universal amid gloomier outlook
8 USA — churn continues to bite, as exit eludes
8 Systems Solutions — costs of “big deal execution” hurt DT
8 Headquarters and Shared Services
8 Table 3. Deutsche Telekom, Group Headquarters and Shared Services financials (as reported) and operational indicators, Q3 and 9m FY11
8 Save for Service ‘phase two’ in pipeline
9 Europe, IT, and Headquarters in frame for more cuts
10 Guidance maintained, to investor relief
10 Table 4. Deutsche Telekom, FY11 financial guidance
11 Group
11 M&A
11 AT&T, DT rethink TMUS deal, after further FCC blow
12 Operations
12 DoJ seeks to cut off tactical withdrawal
12 VZW sticks knife in with spectrum deal
12 Still alive, but at what cost?
14 People
14 Arnold takes over as T-Labs refreshes
14 Lebara rumours reappear
14 Management, price barriers
14 Kozel springs surprise with exit request
15 Suppliers
15 LogMeIn claims traction with device fix app
15 Job not finished
15 CIO also departs, amid reports of further IT integration
17 LogMeIn claims traction with device fix app cont’d
17 People movement highlights
18 Products and services
18 DT, Blue Jeans launch VideoMeet conferencing tool
18 USA appears out of range
18 DT pushing value
19 Technology & Innovation
19 Regulatory
19 Obermann plays down EU copper proposals
20 Technology & Innovation
20 DT calls for vendor support on network resource
20 Terminals
20 Mobile terminal highlights
22 Germany
22 Q3 FY11
22 Q3 FY11: Cost savings boost TDE, but sales dip further
22 Out of sync iPhone launches hit equipment revenue
23 Germany
23 euromicron flags fibre support deal
23 Table 5. Deutsche Telekom, Germany area financials (as reported), Q3 and 9m FY11
23 Push to widen data uptake bears fruit
23 Entertain Sat bolsters TV user acquisition
24 Table 6. Deutsche Telekom, Germany area key performace and operational indicators, Q3 and 9m FY11
25 M&A
25 Consolidation again mooted among TMDE rivals
25 Vodafone, KPN, linked with O2
26 Network
26 Vodafone gains early LTE lead
27 Wholesale LTE not yet on agenda
27 Products and services
27 TDE trumpets sat TV growth, despite device shortage
28 Entertain Sat mooted as conduit for Bundesliga rights expansion
29 TMDE becomes latest OpCo to add HD voice
29 Back in vogue, as retention tool
31 Europe
31 Albania
31 Austria
31 Q3 FY11: TMAT still cost-focused as sales dip again
31 3, Orange talks add investment uncertainties
32 Table 7. Deutsche Telekom, Austria financials (adjusted) and operational indicators, Q3 and 9m FY11
33 Croatia
33 Q3 FY11: Outlook grimmer but HT boosts margins
33 Region-leading margin retained
33 ICT, IPTV growth again highlighted
33 Removal of contentious mobile tax firmed up
34 Table 8. Deutsche Telekom, Croatia financials (adjusted) and operational indicators, Q3 and 9m FY11
35 Czech Republic
35 Q3 FY11: TMCZ provides jolt with 19% drop in EBITDA
35 Table 9. Deutsche Telekom, Czech Republic financials (adjusted) and operational indicators, Q3 and 9m FY11
36 Lottery firm troubles hits sales
36 Retention spend forced up
37 Greece
37 Q3 FY11: OTE touts cost progress, as challenges mount
37 Real estate tax, price restrictions drag on fixed-line sales
37 Tsamaz calls for rivals to push through merger
38 Table 10. Deutsche Telekom, Greece financials (adjusted) and operational indicators, Q3 and 9m FY11
39 Cosmote adds 900MHz, 1800MHz frequencies
39 Cosmote to “plan next steps” for network
39 Auction pushes Vodafone, Wind closer together
41 Hungary
41 Q3 FY11: Contract retention measures hurt MT
42 Montenegro
42 Table 11. Deutsche Telekom, Hungary financials (adjusted) and operational indicators, Q3 and 9m FY11
42 MT ties with Cellum, MasterCard on mobile payments
43 TMHU takes less involved, partner role
43 Future integration with NFC, mobile remittance offerings mooted
44 Netherlands
44 Q3 FY11: “iPhone effect” colours TMNE figures
44 Table 12. Deutsche Telekom, Netherlands financials (adjusted) and operational indicators, Q3 and 9m FY11
45 Poland
45 Q3 FY11: Currency, competition thwart TMPO progress
45 Table 13. Deutsche Telekom, Poland financials (adjusted) and operational indicators, Q3 and 9m FY11
46 Re-branding response looks positive
46 Romania
46 Phorm tie-up hits regulatory scrutiny already
47 Tie-up could be risky, but Phorm insistent on upside
47 Slovakia
47 Q3 FY11: Cost cutting remains top of agenda for ST
48 Table 14. Deutsche Telekom, Slovakia financials (adjusted) and operational indicators, Q3 and 9m FY11
49 United Kingdom
49 EE inks multi-bank loan deal for debt refinancing
49 Bond issue also mooted
49 FT denies pressure to absorb or exit EE, cites UK “risk”
51 Tweaks to EE spectrum sale obligations mooted
51 Proceeds could be ring-fenced for investment
51 Table 15. 2011 UK mobile operator spectrum allocations
52 Q3 FY11: sales fall accelerates, but trend reportedly “in line”
52 Table 16. Deutsche Telekom, UK financials (adjusted) and operational indicators, Q3 and 9m FY11
53 EE flags another tranche of redundancies
55 USA
55 USA
55 Q3 FY11
55 DT warns over TMUS’ ongoing iPhone isolation
55 Table 17. Deutsche Telekom, USA area financials (as reported)and operational indicators, Q3 and 9m FY11
56 Android push unlikely to mitigate 4S release
56 Obermann backs Humm
57 Products and services
57 TMUS expands Google ties with music alliance
57 Can Android disrupt Apple again?
57 No word yet on other DT tie-ups
58 Systems Solutions
58 Q3 FY11: contract squeeze pressures margins
58 Renegotiation, “quality assurance” expenses hit again
58 Cloud traction claimed
59 Table 18. Deutsche Telekom, Systems Solutions’ financials (as reported) and operational indicators, Q3 and 9m FY11
60 Index
Index
A
Africa
- South Africa 58
Albtelecom
- Eagle Mobile 31
Aliph Inc.
- Jawbone 20
Amazon.com Inc. 57
Americas
- Brazil 47
- United States of America (USA) 4, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 18, 27, 33, 55, 56, 57
- – Department of Justice (DoJ) 12, 13
- – Federal Communications Commission (FCC) 4, 11, 12, 13
Apple 8, 19, 20, 44, 55, 57
- iOS 19, 20, 41, 42
- iPhone 7, 8, 10, 13, 20, 21, 22, 44, 55, 56, 57
Asia-Pacific 47
- Australia 14
- India
AT&T 4, 8, 10, 11, 12, 13, 25, 55, 56
Axel Springer AG 18
B
Bank für Tirol und Vorarlberg AG (BTV) 59
Bank of Tokyo 49
Barclays plc
- Barclays Capital 49
BKS Bank AG 59
Blue Jeans Network Inc. 18
Bookline.hu Nyrt 43
Bortársaság Boltok Kft (Budapest Wine Society) 43
BT Group 47, 49
- BT Global Services 49
Bundesliga 28
C
Cellular South Inc.
- C Spire Wireless 8, 56
Cellum Zrt 42
Cisco Systems 14
Comcast Corp. 12
Communication Workers’ Union (CWU) 52
Communology GmbH 22
Consol Glass (Pty) Ltd 58
Cosmote Romanian Mobile Teleco. SA (see OTE/DT) 20, 21, 29
D
Daimler AG 11
Dell 17
Deutsche Post 11
Deutsche Telekom
- Corporate
- – Fix – - Transform – - Innovate 14, 15
- – Headquarters 14
- Europe 45
- – Austria 17, 20, 29, 31, 36
- – Bulgaria (see OTE) 20, 21
- – Croatia (Hrvatski Telekom) 20, 21, 33, 34, 35
- – Czech Republic 29, 33, 35, 36, 41
- – Greece (see OTE) 20, 39
- – Hungary (see Magyar Telekom) 15, 17, 20, 41, 42, 43
- – Montenegro (see Magyar Telekom) 42
- – Netherlands 17, 29, 37, 44, 45
- – Poland (Polska Telefonia Cyfrowa/PTC) 5, 10, 20, 29, 36, 45, 46
- – - NetWorkS! 46
- – Romania (see Cosmote Romania/OTE) 20, 21, 29
- – Slovakia (Slovak Telekom/T-Mobile) 17, 20, 21, 33, 35, 47, 48
- – UK (Everything Everywhere) 17, 20, 25, 29, 49, 50, 51, 52, 53, 58
- Executives
- – Arnold, Heinrich 14
- – Höttges, Timotheus 9, 22, 28
- – Humm, Philipp 8, 56
- – Kozel, Edward 9, 14, 15
- – Lesser, Andy 20
- – Mahler, Roland 17
- – Missler, Philip 17
- – Nemat, Claudia 17
- – Obermann, René 4, 8, 9, 10, 14, 19, 22, 23, 27, 35, 36, 56, 58
- – van Damme, Niek Jan 26, 28
- Ex-executives
- – Moeckel, Peter 14
- – Sachs, Guido 17
- Germany 4, 7, 9, 14, 18, 20, 21, 22, 23, 25, 26, 27, 28, 29, 36
- – Strato 23
- Investments
- – Magyar Telekom (see) 15, 17, 41, 42, 43
- – OTE (see) 7, 10, 17, 37, 38, 45
- Management Board 14
- Marketing
- – Developer Garden 19
- Product and Innovation
- – T. Innovation Labs. (T-Labs) 14
- Products and services
- – Bobsled 18
- – Call & Surf 23
- – Entertain 7, 23, 27, 28
- – Lieferheld Rescue 15
- – MyClickNet 46
- – PagePlace 18
- – Telekom Music App 22
- – VideoMeet 18
- Strategy
- – Connected Home 14
- – Growth Areas 14, 15, 58
- – One Company 47
- – Save for Service 4, 8, 9, 22, 58
- Systems Solutions 5, 6, 8, 9, 15, 41, 58, 59
- – T-Systems 18, 59
- – - SDS 59
- T-Venture 14
- USA 4, 8, 10, 11, 12, 13, 19, 21, 25, 55, 56, 57
Drillisch AG 22
E
EADS 11
Ericsson 42, 47, 55
- Croatia (see Ericsson Nikola Tesla) 42
- Tandberg 18
Ericsson Nikola Tesla d.d. (see Ericsson) 42
euromicron solutions GmbH 23
Europe
- Albania 31
- Austria 7, 18, 31, 32, 45, 59
- – Rundfunk und Telekom Regulierungs (RTR) 31
- Croatia 7, 33, 34, 42
- – Prva Liga 33
- Czech Republic 7, 35, 36
- France 14, 15, 18, 25, 29, 31, 46, 49, 50
- Germany 5, 6, 7, 10, 11, 12, 14, 18, 19, 22, 23, 24, 25, 26, 28, 31, 35, 50
- – Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 25, 26
- – Federal Ministry of Economics and Technology (BMWi) 11
- – Government 19
- Greece 7, 10, 17, 25, 31, 37, 38, 39, 45
- – Hellenic Telecoms and Post Commission (EETT) 37, 39
- Hungary 7, 41, 42, 43, 50
- – Hungarian Mobile Wallet Association 43
- Italy 18
- Kosovo
- – Posta dhe Telekomunikacioni i Kosovës (PTK)
- – - Albania (PLUS, see seperate) 31
- Montenegro 42
- – Agencija za Elektronske Komunikacije i Poštansku Djelatnost (EKIP) 42
- Netherlands 7, 14, 25, 44, 50
- Poland 7, 18, 31, 45
- Romania 7, 21, 46
- – ANSPDCP (Autoritatea Naţională de Supraveghere a Prelucrării Datelor cu Caracter Personal) 46, 47
- Slovakia 7, 21, 47, 48
- Southern Europe 10, 38
- Spain 14, 18, 25
- Sweden 42
- Switzerland 14
- United Kingdom (UK) 12, 14, 18, 20, 25, 47, 49, 50, 51, 52
- – London Borough of Lambeth Council 49
- – Office of Communications (Ofcom) 51
European Digital Rights (EDRi) 46, 47
European Union 19, 39
- European Commission 50, 51
Evans Randall 12
Everything Everywhere Ltd (see DT, FT) 10, 17, 20, 25, 29, 49, 50, 51, 52, 53, 58
- Executives
- – Dunn, Pippa 17
- – Jackson, Stuart 17
- – O’Kelly, Robin 17
- – Sears, Mat 49
- – Swantee, Olaf 51, 52, 53
- Ex-executives
- – Hardy, Lysa 17
- Orange UK 17, 20, 29, 49, 52
- T-Mobile UK 17, 20, 21, 49, 52
ExxonMobil Corp. 23
F
Fairesearch GmbH & Co KG 22
FHB Mortgage Bank Co. Plc. (FHB Hypotheken- und Bodenkreditbank AG) 43
France Télécom 15, 25, 29, 31, 46, 49, 50
- Orange 17, 20, 21, 29, 31, 32, 48, 49, 50, 52, 53
- – Austria 31, 32
- – Poland (see Telekomunikacja Polska) 46
- – Romania 29
- – Slovakia 48
- – UK (see Everything Everywhere, DT) 10, 17, 20, 25, 29, 49, 50, 51, 52, 53, 58
G
Google 18, 20, 57
- Android 15, 19, 20, 21, 22, 41, 42, 56, 57
G’Roby Supermarketek Kft 43
H
High Tech Computer Corp. (HTC) 20, 21, 29
Hrvatski Telekom (see DT, Croatia) 33, 34, 35
- Combis d.o.o. 33
- MAXtv 33
HSBC 49
Huawei Technologies 21
Hutchison Whampoa 31, 32
- 3 Group 17, 50
- – Austria 31
- – UK 50, 51
I
Informa Telecoms & Media
- Datamonitor 21
J
JPMorgan Chase 49
K
KfW Bankengruppe 11
KPN 14, 25, 26, 44
- E-Plus 25
- Simyo 25
L
Leap Wireless International Inc. 13
Lebara Group 14
LG Electronics 20, 21
Liberty Global Inc.
- UPC Broadband 44
Lloyds Banking Group plc 49
Logitech International SA
- LifeSize Communications 18
LogMeIn Inc. 15, 17
M
M2M Telematics 19
Magyar Telekom (see DT) 15, 17, 41, 42
- Montenegro
- – Crnogorski Telekom 42
- MusicCenter 41
- T-Mobile Hungary 20, 43
MasterCard 42, 43
MetroPCS Communications Inc. 13
Microsoft 17, 18, 20
- Skype 18
- Windows Mobile 42
- Windows Phone 20, 21
Middle East
- Israel 14
MIPS 59
Mitsubishi 49
- Mitsubishi UFJ Securities 49
MobilParkolás 43
Montenomaks Control & Logistic 42
Morgan Stanley 25, 49
N
Nelson Bostock Group 49
Nokia 17, 20, 21, 29, 36
Nokia Siemens Networks 55
O
Oberbank AG 59
OTE (Hellenic Telecom. Org. SA, see DT) 7, 10, 17, 37, 38, 45
- Bulgaria (Globul) 20, 21
- Cosmote 20, 21, 29, 39
- – Albania (Albanian Mobile Comms./AMC) 31
- – Greece 20, 39
- – Romania 20, 21, 29
- Romania (Romtelecom) 7, 46, 47
- Tsamaz, Michael 37
OTP Bank 43
P
Phorm Inc. 46, 47
PLUS Communication Sh.A. (see also PTK) 31
Polycom Inc. 18
Posta dhe Telekomunikacioni i Kosovës (PTK) 46
R
Research In Motion 21
- BlackBerry 21
Royal Bank of Scotland plc, The 14, 49
S
Samsung 21
Sanford C. Bernstein & Co. 13
SAZKA, a.s. 36
SES S.A. 27
- SES Astra S.A. 27
Slovak Telekom (see DT, Slovakia) 17, 21, 33, 35, 47, 48
Sonaecom
- Optimus 20, 21
Sony Corp. 57
Sony Music Entertainment 57
Sony Ericsson 29, 36
Sprint Nextel 56
T
Technology
- 2G 39
- 3G 29, 31, 36, 39
- – Evolved HSPA (HSPA+/I-HSPA) 55
- – - 64QAM 20, 55
- – HSPA 20, 55
- 4G 21, 31, 39, 51, 55, 56
- – Long Term Evolution (LTE) 26, 31, 56
- BiDi 43
- Bluetooth 20
- DSL 26, 27
- Fibre 19, 23, 34
- FTTH 23
- HD voice 29, 36
- IP 27, 33
- IPTV 27, 28, 33, 34, 38, 42, 48
- M2M 14, 19
- microSD 20
- NFC 43
- R&D 14
- RF 39
- SIM 42, 43
- Smartphone 15, 20, 21, 22, 23, 29, 36, 41, 42, 44, 45, 56, 57
- SMS 23, 35
- Spectrum
- – 800 MHz 25, 31, 51
- – 900 MHz 39, 42, 47, 51
- – 1000 MHz 20
- – 1800 MHz 39, 42, 47, 51
- – 1900 MHz 13
- – 2100 MHz 13, 42, 51
- – 2600 MHz 31, 44, 51
- – Advanced Wireless Spectrum 11, 12, 13
- – Digital dividend 25, 31, 44, 49, 51
- Telematics 19
- Web Services 57
- Windows 20, 21, 42
- – Windows Mobile 42
Tele2 44
- Netherlands 44
Telecom Italia 19
Telefónica Group 22, 25, 26, 36, 47, 48, 50, 51
- Europe 22, 25, 26, 51
- – Czech Republic 36
- – Germany 22, 25, 26
- – Slovakia 48
- – UK 50, 51
- Latin America
- – Brazil 47
Telekom Austria 31
- Austria
- – A1 31
Telekom Srbija a.d. (see OTE/DT)
- Društvo za telekomunikacije m-tel d.o.o. (m-tel) 42
Telekomunikacja Polska SA (see France Télécom)
- Telekomunikacja Polska SA
- – PTK Centertel Sp. z o.o. 46
Telemar Norte Leste S.A. (Oi) 47
Telenor ASA 17, 42, 43
- Hungary 43
- Montenegro 42
Terra Firma Capital Partners (TFCP)
- EMI Group Ltd 57
Time Warner 12
V
Verizon Communications 12, 56
- Verizon Wireless 12, 56
Virgin Media 49
Vivendi
- Universal Music Group 57
Vodafone 7, 14, 17, 22, 25, 26, 31, 35, 36, 37, 38, 39, 43, 44, 49, 50, 51
- Africa, Middle East, and Asia Pacific Region (AMAP)
- – India 32
- Europe Region
- – Albania 31
- – Czech Republic 35, 36
- – Germany 22, 25, 26
- – Greece 7, 37, 39
- – Hungary 43
- – Netherlands 44
- – UK 49, 50, 51
W
Warner Music 57
Weather Investments
- Orascom Telecom
- – WIND Hellas 7, 25, 37, 39
- – Wind Telecomunicazioni 7, 25, 37, 39
Wiener Versicherung Gruppe (Vienna Insurance Group, VIG) 41
Y
Yahoo! 14
yetu AG 14
Z
Ziggo 4 (see Liberty/UPC, Zesko) 44
ZTE Corp. 20
About Deutsche Telekomwatch
Report: #5
Covering: November-December 2011
Published: December 2011
Next report: January 2012
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