Group Chief Executive Timotheus Höttges used a trip to Poland to stress Deutsche Telekom’s (DT) commitment to the country, despite T-Mobile Poland’s (TMPL) recent struggles.

In an early-June 2017 speech at the Impact 17 conference in Krakow, Poland, Höttges positioned TMPL as a prominent player as DT moves towards a planned release of 5G around 2020. He indicated the NatCo will be an early 5G proponent within DT, saying the Group will “make sure Poland is among the first countries that will have 5G networks”.

He further announced that hub:raum Krakow, the regional branch of DT’s incubation and acceleration business, is in the process of launching a “prototyping hub” focused on working with startups on 5G and low-latency network use-cases. The facility will particularly focus on robotics, Höttges said. It follows on from two Narrowband Internet of Things (NB-IoT) prototyping hubs, opened by hub:raum in Bonn and Krakow earlier in 2017, to encourage ecosystem development to support DT’s NB-IoT rollout (Deutsche Telekomwatch, #55 and #61).

“ The fact we have hub:raum in Poland, in Krakow, and that it covers the whole [central and eastern Europe] region just proves our commitment in this region, the country, and long-term planning… Let’s use hub:raum as a platform for further collaboration between Poland and DT. ” – Höttges.

  • The establishment of a 5G research function in Poland adds to an emerging theme of NatCo participation in Group research and development (R&D) efforts focused on 5G, beyond DT’s German operations and Group 5G standard-bearer T-Mobile US. In Europe, OTE is closely involved in the European Union-led 5G Infrastructure Public Private Partnership initiative, while Magyar Telekom (MT) recently flagged the city of Zalaegerszeg as a “regional centre” of 5G development. MT said it had started building a pilot 5G mobile network, supported by the national government and city authorities, and will primarily use it to test automotive use-cases and develop “smart transport solutions”. T-Systems will also be involved in 5G R&D within Zalaegerszeg.

TMPL not yet back in the game, though

  • It is too early to definitively say whether the warmth of Höttges’s comments reflects a turning point in DT’s thinking on TMPL, whose future within DT has been open to question for some time now, amid rising pressure to deliver results improvement in its European businesses.
  • TMPL has been flagged as one of the Europe segment’s under-performers since at least 2015, and in the interim has undergone a series of management changes aimed at improving its fortunes.
  • The NatCo has in recent years been haemorrhaging mobile subscribers to rivals, ending DT’s last financial year, to 31 December 2016 (FY16), with 10.6 million mobile users, down from 12.1 million at the start of the year, and 15.7 million twelve months before that. Across FY16, the NatCo posted sharp declines in both revenue (-3.6%) and core earnings (-16.9%). In the current FY, it is also yet to show evidence of a comeback, reporting a 3.7% drop in revenue and 16.7% fall in earnings during the quarter to 31 March 2017 (Deutsche Telekomwatch, #63 and passim).
  • DT is known to have dedicated a Board of Management session to the NatCo’s situation during 2016, while also reportedly commissioning a review of its Polish presence (Deutsche Telekomwatch, #61, #62, and passim).
  • Even if DT has decided against a full divestment of TMPL, Höttges’s comments may not suggest the NatCo is out of the woods in terms of serious reorganisation. There remains the possibility DT has identified an internal “solution”, perhaps akin to 2016’s transfer of fellow struggler T-Mobile Netherlands to management by the central Group Development division.
  • Of further note, with DT planning a broader revamp of tower assets in Germany, and perhaps elsewhere, is that the NatCo’s NetWorkS! infrastructure-sharing joint venture with Orange Poland has separately been the subject of M&A speculation (Deutsche Telekomwatch, #56 and #58).

Image: Pixabay CC0.

Table of Contents

3 Executive brief

Group

6 Group Development
6 Group sits on hands as Orange offloads BT shares
6 A brave face from BT on Orange departure
7 BT-DT joint research plans have yet to get off the ground
9 Group Development
9 Scout24 exit all-but-completed
10 Not done yet
10 Advisors take their slice
11 Partnerships
11 DT and Inmarsat trumpet EAN satellite launch
12 Airbus to provide EAN retrofit solution
12 EAN faces court challenge, with DT’s terrestrial element a key focus
13 Technology & Innovation
13 DT: less to lose?
14 People
14 Table 1 People movement highlights
16 Technology & Innovation
16 DT looks beyond “classical” vendors, flags 5G concerns
17 Technology & Innovation
DT seeking disruption via xRAN… 17
… and TIP 17
18 ROCE not good enough, innovation slow…
18 … RAN out of steam
19 Is my network slice the same as yours?
20 Technology & Innovation
20 Cloud TV browser pencilled in for 2018 launch
20 Tuning into TV expansion

Germany

23 Network
23 TDE talks a “fibre” game but rivals unimpressed
23 Facts on the ground
24 Legal and regulatory
24 Some contrition?
25 Products and services
25 TDE kick-starts NB-IoT, hails “rapid” ecosystem growth
26 Operations
26 Smart parking
26 Economies of scale
27 The bigger European picture
27 DT’s horizons extending beyond NB-IoT

Europe

30 Croatia
30 HT gains go-ahead for Optima tie-up ‘phase two’
30 Watchdog reluctant, but few other cards to play
31 Region
31 Czech Republic
31 TMCZ expands Mojio-powered Smart Car offering
32 ICSS
32 Macedonia
32 Greece
32 Cosmote rivals trumpet broadband plans
33 Competitors on high fibre plans
34 Poland
34 Poland
34 Höttges more positive than usual on Poland
35 Table 2 Deutsche Telekom, Europe area revenue by territory (adjusted), FY16
35 TMPL not yet back in the game, though

Systems Solutions

38 Strategy
38 Lookout and Splunk tie-ups further security partner push
39 Table 3 Magenta Security portfolio and partner ecosystem, early-2017
39 Contracts
39 Partnerships
40 People
40 Products and services
40 T-Sys UK in cloud business development push

USA

43 Table 4 The millimetre wave path to 5G: Spectrum Frontiers at a glance
43 Legal and regulatory
43 TMUS urges FCC to look beyond mmWave for 5G
44 Legal and regulatory
44 Think more about 3.5GHz
45 Legal and regulatory
45 Network
45 600MHz deployment begins
46 Network
46 TMUS launches LTE-U, starts commercial LAA tests
46 LAA law
47 Supply chain
47 TMUS adds further to IoT ecosystem
47 Mavenir points to role in DIGITS evolution

49 Further reading

53 Index

Index

Symbols

3rd Generation Partnership Project (3GPP) 27, 45, 46, 47

A

Africa
South Africa 14
– Agencija za Zastitu Trzisnog Natjecanja (AZTN) 30
Alliance for Internet of Things Innovation 13
Alphabet
Google 45
– Android 25, 38, 47
– – Amdocs 47
OpenMarket Inc. 47
– Americas
United States of America (USA) 7, 10, 12, 17, 27, 39, 42, 43, 44, 45
– Federal Communications Commission (FCC) 43, 44, 45, 46
– – Government 43
– – States
– – Califormia 46
– – – Idaho 44
– – – Michigan 44
– – – New York 46
– – – Apple
iOS 25, 38, 47
– Aricent Inc. 17
Asia-Pacific 44
Australia 14
– China 30, 39
– Japan 46
– Singapore 14
– South Korea 7, 19, 20
– AT&T 16, 17, 27, 44, 47
Axiata Group Bhd (TM International)
Singapore (Mobile One, see separate listing) 27
– B
Barclays plc 10, 18
Barclays Bank 10
– Bharti Group 14
Bharti Airtel 14
– Blue Coat Systems 39
British Broadcasting Corp. (BBC) 12, 13
BT Group 6, 7, 13, 14, 17
BT Global Services 7
– EE 6, 7
– C
CDU/CSU (Christian Democratic Union of Germany/Christian Social Union) 23
CeBIT 40
CenturyLink Inc. 44
Check Point Software Technologies Ltd. 39
Ciena Corp. 17
CipherCloud 39
Cisco Systems 17, 39, 40
Comverse Technology 39
Credit Suisse 10

D

Deutsche Telekom 6, 7, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 23, 24, 25, 26, 27, 30, 31, 32, 33, 34, 35, 38, 39, 40, 43, 44, 45, 46, 47
ClickandBuy (Firstgate) 10
– Corporate
– Headquarters 27, 34, 38
– – Deutsche Telekom Capital Partners 9, 10
– Deutsche Telekom Strategic Investments 38
– – Kumu Networks (see separate) 19
– – – Fireglass (see separate) 9
– – Mojio (see separate) 31
– – Morphisec (see separate) 9
– – SafeBreach (see separate) 9
– – Strato (see separate) 10
– – Digital Business Unit
– DeTeMedien 10
– – Scout24-Gruppe
– – AutoScout24 10
– – – ImmobilienScout24 10
– – – Europe
– Croatia (Hrvatski Telekom) 30
– – Czech Republic 31
– – Greece (see OTE) 32
– – Hungary (see Magyar Telekom) 14, 24, 33, 34
– – International Carrier Sales & Services (ICSS) 32
– – Netherlands 27, 35
– – Poland (Polska Telefonia Cyfrowa/PTC) 14, 34
– – NetWorkS! 35
– – – Slovakia (Slovak Telekom/T-Mobile) 31
– – UK (EE) 6, 7
– – European Aviation Network 11
– Executives
– Abolhassan, Ferri 14
– – Abrahamson, Jonathan 14
– – Backofen, Dirk 38
– – Banerjee, Debanjan 14
– – Calian, John 14
– – Clemens, Reinhard 14, 26
– – Fleutiaux, Francois 14
– – Gopalan, Srini 14
– – Höttges, Timotheus 7, 18, 34
– – Jacobfeuerborn, Bruno 18
– – Janssen, Uwe 16
– – Langheim, Thorsten 10
– – Nikutta, Randolph 20
– – Pruchnow, Johannes 24
– – Ray, Neville 43, 46
– – Rickmann, Hagen 26
– – Sievert, Mike 43
– – van Damme, Niek Jan 23
– – Vasina, Milan 31
– – Vento, Vicente 10
– – Wunderer, Dr. Felix 14
– – Ex-executives
– Gyenes, Andras 14
– – Hedberg, Jeffrey 14
– – Koszolko, Slawomir 14
– – Germany 14, 23, 24, 25, 26, 27, 32
– T-Online 10
– – InteractiveMedia 10
– Investments
– Magyar Telekom (see separate) 14, 24, 33, 34
– – OTE (see separate) 32, 34
– – Product and Innovation
– hubraum 27, 34
– – Telekom Innovation Laboratories (T-Labs) 13, 14, 20
– – Products and services
– immmr 47
– – MagentaMusik 360 25
– – Scout24 9, 10
– – Strategy
– Growth Areas 9
– – One Company 14
– – Systems Solutions 37
– T-Systems 7, 9, 14, 24, 25, 34, 38, 39, 40
– – Detecon 14
– – – South Africa 14
– – – Telekom Security 9, 38
– – – Technology
– 5G
– – haus 17, 19
– – – BNG (Broadband Network Gateway) 33
– – USA 31, 34, 38, 43, 44, 45, 46, 47
– Deutsche Telekom Capital Partners 9, 10
Dual Inventive 27

E

EADS
Airbus 12
– EchoStar Communications Corp. 13
Ecrio Inc. 47
Emblaze Group
European Telecom 16
– Ericsson 17, 19, 45, 46
Europe
Austria 13, 27, 35
– Belgium 24
– Croatia 27, 30, 35
– Czech Republic 27, 31, 35
– France 6, 11, 12, 24, 47
– Autorite de Regulation des Communications Electroniques et des Postes (ARCEP) 12
– – Germany 7, 9, 10, 11, 12, 14, 19, 20, 22, 23, 24, 26, 27, 34, 35, 39, 40
– Government 24
– – Greece 27, 32, 33, 35
– Hellenic Telecoms and Post Commission (EETT) 32, 33
– – Hungary 14, 20, 24, 27, 35, 39
– Ireland 27, 47
– Italy 6
– Luxembourg 10
– Macedonia 14, 32
– Netherlands 27, 35
– Norway 11
– Poland 27, 34, 35
– Romania 20, 35
– Slovakia 27, 31, 35, 47
– Spain 27
– Sweden 25
– Switzerland 11, 39, 47
– United Kingdom (UK) 6, 7, 12, 40, 44, 47
– Office of Communications (Ofcom) 12
– – European Telecommunications Standards Institute 16
European Union 11, 12, 24, 32, 34, 44
European Commission 12, 13
– European Court of Justice 11, 12
– European Parliament 9
– Eutelsat Communications 12, 13

F

F5 Networks Inc. 39
Facebook 16, 17, 45
Telecom Infra Project 16, 17
– FireEye 39
Fireglass 9
Forthnet 33
France Télécom
Orange 6, 7, 13, 14, 34, 35
– Poland (see Telekomunikacja Polska) 34, 35
– – UK (see EE, DT) 6, 7
– – Fujitsu 14

G

Georg Fischer 39
Goldman Sachs 10
GSM Association
Mobile World Congress 17, 18, 19, 20, 27, 46
– GSM Association (GSMA) 27
GTS Central Europe 14

H

H1 Telekom 30
Hellman & Friedman 9
Hewlett-Packard 39
Hrvatski Telekom (see DT, Croatia) 30
Huawei Technologies 13, 17, 19, 23

I

IBM 13, 38, 39
Informa Telecoms & Media
Ovum 45
– Inmarsat 11, 12, 13
Intel 12, 17, 39
International Airlines Group SA
British Airways 12
– Vueling Airlines SA 12
– Intracom Holdings
Hellas On Line (HOL) 33
– Itho Daalderop 27

J

Juniper Networks 39

K

Kaspersky Lab 39
Kumu Networks 19

L

Lookout, Inc. 38, 39
Lufthansa 12

M

Magyar Telekom (see DT) 14, 24, 33, 34
Macedonia (Makedonski Telekom/T-Mobile) 14, 32
– T-Systems Hungary 39
– Market segments
Machine-to-machine (M2M) 40
– Mavenir Systems 17, 47
McKinsey & Co 14
MetroPCS Communications Inc.
Carter, Braxton 44
– Microsoft 40
Skype 13
– Middle East
Israel 9, 47
– Mobile One (Singapore) 27
Mojio 31
Morgan Stanley 10
Morphisec 9
MTN 14

N

NEC 13
NetTest 32
Nokia 11, 17, 19, 20, 25, 46

O

Open Handset Alliance (OHA)
Android 25, 38, 47
– Optima Telekom 30
OTE (Hellenic Telecom. Org. SA, see DT) 32, 34
Cosmote 32, 33
– Greece 32
– – Hellas Sat 11
– P
Palo Alto Networks Inc. 39
Panasonic 12
Polkomtel 34

Q

Qualcomm 13, 19
Qualys 39
Quantum Corp. 20

R

Rakuten 10, 14
Red Hat 40
Riverbed Technology 39
RSA Security 39
RWE AG 24

S

SafeBreach 9
Samsung 19, 25, 47
SAP 39
Sequans 27, 47
Sigfox 27
Singapore Telecom 14
Optus (Australia) 14
– SK Telecom 7, 17, 19, 20
Slovak Telekom (see DT, Slovakia) 31
Sophos 39
Splunk Inc. 38, 39
Sprint Corporation 45
Strato 10
Symantec 9, 38, 39
Synchronoss Technologies Inc. 14

T

Technology
2G
– GSM 27
– – 3G 44, 47
– Evolved HSPA (HSPA+/I-HSPA)
– – MIMO 46
– – – 4G 46
– Long Term Evolution (LTE) 11, 20, 27, 32, 45, 46, 47
– – 5G 16, 17, 18, 19, 23, 26, 34, 43, 44, 45
– Blockchain 14, 38
– Fibre 23, 24, 33
– FTTH 23, 24, 33
– IMS 47
– IP 16, 17, 32, 33, 47
– IPTV 20
– Linux 17
– M2M 40
– MMS 38, 40
– Narrowband Internet of Things (NB-IoT) 25, 26, 27, 34
– NFV 16
– OpenStack 16, 18, 20
– Personal computer 25
– RAN 17, 18
– R&D 7, 34
– RF 19, 43
– SDN 16
– SIM 24, 25
– Smartphone 38, 45, 46
– Spectrum 43, 44, 45, 46
– 700 MHz 45
– – 3500 MHz 44
– – VDSL 32, 33
– VDSL2 33
– W-LAN 31, 46
– Telecom Italia 13
Telefónica Group 24, 45
Telit 47
Telstra 17
Texas Instruments 17
Thales Group 11
Time Warner
AOL 45
– U
Unilever 14
United Internet 10

V

Value-added services 34, 43
Verizon Communications 16, 17, 27, 44, 45, 47
ViaSat 12
Vodafone 13, 14, 17, 24, 27, 32, 33, 45
Africa, Middle East, and Asia Pacific Region (AMAP)
– India 14
– – Europe Region
– Germany 24
– – Greece 32
– – W
Weather Investments
Orascom Telecom
– WIND Hellas 32
– – Wind Telecomunicazioni 14, 32, 33
– – Wells Fargo 45
Western Europe 11
World Wide Web Consortium 13, 20

Y

Yahoo! 45

Z

Zagrebacka banka 30
Zscaler 38, 39
ZTE Corp. 19

About

About Deutsche Telekomwatch

Report: #65
Covering: July 2017
Published: July 2017
Next report: September 2017
For more information visit: Deutsche Telekomwatch