The multinational corporate division followed up 2017’s, Internet of Things-focused China Unicom partnership by tieing with Brazilian provider Embratel to strengthen its national connected services connectivity.

  • DT continues to push more self-sufficient and maverick partnership model for next-generation services.

T-Systems (T-Sys) upped its Internet of Things (IoT) game in Brazil by forming a local mobile virtual network operator (MVNO) and preparing a launch of its IoT Service Portal management application in the country.

The IoT-focused MVNO relationship — presumably designed to improve the economics and reliability of T-Sys’s connectivity supply for Brazil-focused IoT clients — has been created through a partnership with Embratel, a local carrier and corporate service provider controlled by regional giant América Móvil (AM).

The underlying wireless capacity is being provided by Claro Brasil, AM’s local fixed-line and mobile operator.

The venture is scheduled to go live in 2018, alongside the release of the IoT Service Portal, which DT pitches as a “cockpit” for enterprise IoT clients to monitor and manage their IoT assets. The application (previously called the M2M Service Portal) is currently offered in some of DT’s European markets, as well as China.

Ingo Hofacker, Head of IoT in T-Sys’s Digital Division, described the move as down to the division’s desire to “make digitisation easier on a global scale because the international demand for intelligently managed IoT services is high”. “With the support of Embratel, T-Systems will have connectivity, availability, and network quality to support the IoT operations of its global customers in Brazil”, added Marcello Miguel, Executive Director of Marketing and Business at Embratel.

  • While T-Sys does not break out figures for its Brazilian business, local unit T-Systems Brazil has appeared relatively active at a time when several other of the division’s in-country operations have been rolled back, or sold under efficiency efforts (Deutsche Telekomwatch, #66). Recent years have seen T-Sys investing in additional local data centre capacity, and trumpeting growth opportunities in sectors such as automotive, manufacturing, and mining (Deutsche Telekomwatch, #62 and passim).

Two BRICs laid

It seems plausible that the MVNO approach will be extended to other ex-footprint markets in future, most likely in Latin American, African, or Asia-Pacific territories where T-Sys has businesses but does not benefit from a DT network presence. In early-2017, DT formed an IoT partnership with China Unicom — which was not specifically presented as an MVNO tie-up, but still appeared set to provide T-Sys IoT clients in China with dedicated connectivity (Deutsche Telekomwatch, #61).

More power-hungry DT moving beyond stock partnership patterns

  • A note to the AM tie-up is that T-Sys did not end up partnering Telecom Italia’s (TI) majority-owned TIM Brasil business, rival of Embratel and Claro. Whether this was precluded by legal or technical barriers is unclear, but a TIM link-up would have appeared a logical move, considering TI is a partner of Deutsche Telekom (DT) in international mobility groupings FreeMove and the Global M2M Association, focused on extending their operator members’ network footprints for the benefit of their enterprise clients.
  • Both the AM and China Unicom relationships indicate DT now sees bilateral link-ups as a more effective vehicle to support international IoT ambitions than these traditional multi-operator ‘alliances‘ (whose ability to provide speed and direction has long been open to question).
  • In turn, it is clear DT has become more confident about projecting power in the industry and ‘leading’ ecosystem-building, rather than merely joining in on more collegiate, multi-operator organisations. As well as IoT — an area where DT sees opportunity to make a much stronger global mark than European rivals, such as TI — this has also been evident in the broader enterprise services and technology realms (with the Group’s recent China Unicom and SK Telecom engagements, and the DT-led Next Generation Enterprise Network Alliance, for example).
  • By securing wholesale IoT connectivity in this more independent and self-sufficient way, rather than waiting to form an organisation of equals, with accompanying Mobile World Congress press release, DT is taking a leaf from rival Vodafone Group’s play-book. The UK operator has long sought to project global power, beyond its own network footprint, through its international Partner Markets organisation, and as part of this, it formed an IoT-led MVNO with Brazilian enterprise service provider Datora Telecom in 2013 (Vodafonewatch, passim). It also has an enterprise-focused MVNO relationship with T-Mobile US, although the extent to which this is geared towards IoT connectivity versus other corporate applications is unclear.

Image: T-Systems Brasil.

Table of Contents

EXECUTIVE BRIEF

GROUP

Deals

DT and Orange linked again as Macron seeks EU revival [p6]

  • Figure 1: Deutsche Telekom and Orange fixed-line and mobile footprint comparison
  • An imbalanced friendship
  • Figure 2: Revenue split by geography, DT and Orange (FY16)
  • Table 2: European operator market capitalisation comparison, February 2018
  • An unrealistic mismatch, but no harm done for DT’s attempts to shape Europe
  • DT and Orange by numbers – they don’t add up, for now
  • Table 1: European operator financial and other metric comparison

Partnerships

Nationalisation plan puts Toll Collect JV future in doubt [p9]

  • Government clears way for a partner refresh
  • DT on or off the hook?
  • Troubles mounting up
  • Table 3: Toll Collect overview, 2018 unless stated

DT trumpets completion of ground network for EAN [p13]

  • EAN part of DT’s strategy to connect everyone everywhere
  • Legal challenges not expected to delay EAN launch
  • EAN timeline

People

Table 4: People movement highlights

Technology & Innovation

Höttges: Forget B2C – EU’s digital future is B2B [p18]

  • Höttges remains long on 5G ecosystems
  • Banking on 5G-based B2B revival is ambitious
  • More IoT/B2B tie-up activity; Hamburg and Munich testbeds
  • NB-IoT rollout on schedule, assures DT

GERMANY

Network

TDE extends testing of FTTH demand to Markkleeberg [p23]

  • Public subsidies and industrial zones

EUROPE

Czech Republic

TMCZ to expand FTTH network [p26]

  • Table 5: T-Mobile Czech Republic and Slovak Telekom, financials and KPIs, Q3 FY17
  • Table 6: Selected DT NatCo mobile-wireline broadband user base weighting, at 30 September 2017 (pre-latest M&A)
  • M&A follow-up?

Hungary

MT obliged to provide passive network access [p29]

SYSTEMS SOLUTIONS

Strategy

New T-Sys chief enters with intent [p32]

  • Shaking Systems: Clemens lieutenants and partnerships to be mixed up
  • Thyssenkrupp breakup illustrates the task Al-Saleh faces

T-Sys strengthens Brazil footing with IoT-led MVNO [p34]

  • Two BRICs laid
  • More power-hungry DT moving beyond stock partnership patterns

USA

Network

TMUS typically bullish over 600MHz progress [p37]

  • Taking the low road
  • AT&T 600MHz snub shrugged off
  • LTE coverage lag is old hat, says Ray
  • Macro facts on the ground
  • Add-on M&A action to continue

TMUS keeps up 5G banter [p40]

  • Ray gets claws out in race for 5G bragging rights
  • Mapping out TMUS’ 5G tilt for air supremacy
  • Table 7: National weighted average of spectrum depth, band class *

TMUS seeks allies for densification drive [p42]

  • Europe in network shade again

FURTHER READING

INDEX

Index

Symbols

3rd Generation Partnership Project (3GPP) 40

A

Africa 7, 17, 35
– Congo 7
Alcatel-Lucent 15, 35
Alibaba Group Holding Ltd 18
Alphabet
– Google 8, 18, 19
Amazon.com Inc. 18, 19
América Móvil 34
– Claro 34, 35
Americas
– Brazil 17, 34
– Colombia 42
– Latin America 35
– United States of America (USA) 6, 7, 8, 15, 18, 20, 36, 37, 40
– – Federal Communications Commission (FCC) 38, 39, 41
– – States
– – – Califormia 40
– – – Georgia 9
– – – Illinois 39
– – – Iowa 39
– – – Nebraska 39
– – – New York 38
– – – Washington 41
Apple 39
Asia-Pacific 15, 17, 35
– China 18, 34, 35
– Japan 42
– Singapore 42
– South Korea 17
Atos 33
AT&T 19, 38, 40, 41

B

Banco Santander, SA 17
Bango 27
Bloomberg L.P. 18
BMW 19
Boku 27
BOKU Inc. 27
BroadSoft 6
BT Group
– EE 7

C

CenturyLink Inc. 9
China Unicom 34, 35
Cisco Systems 9, 19
Cleverlance 26
Comarch SA 9
Comcast Corp. 41
Crown Castle International Corp. (CCI) 42

D

Daimler AG 9, 11
Deutsche Telekom 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 23, 24, 26, 27, 28, 29, 32, 33, 34, 35, 37, 38, 39, 40, 41, 42
– Corporate
– – Headquarters 20
– Deutsche Telekom Capital Partners 10
– – Deutsche Telekom Strategic Investments 6
– – – Swyx (see separate) 6
– – Mojio (see separate) 34
– – Next Generation Enterprise Network Alliance (ngena) 9, 35
– Europe
– – Austria 17, 20, 26, 27, 28, 34
– – Croatia (Hrvatski Telekom) 28
– – Czech Republic 16, 26, 27, 28, 34
– – Greece (see OTE) 28
– – Hungary (see Magyar Telekom) 16, 28, 29
– – Netherlands 27, 28
– – Poland (Polska Telefonia Cyfrowa/PTC) 27, 28
– – Slovakia (Slovak Telekom/T-Mobile) 16, 26, 27, 28
– – UK (EE) 7
– European Aviation Network 13
– Executives
– – Binder, Jeff 16, 37
– – Boni, Bill 16
– – Bush, Ken 16
– – Camuso, Stefano 17
– – Clemens, Reinhard 33
– – Fazakas, Andras 16
– – Fleutiaux, Francois 33
– – Gedrovics, Alexander 16
– – Höttges, Timotheus 18, 24
– – Katz, Mike 16
– – Kemal, Kosemehmetoglu 16
– – Kimberger, Michael 17
– – Klose, Fabian 17
– – Konya, Laszlo 17
– – Kralova, Ursula 16
– – Legere, John 40
– – Lenz, Peter 11
– – Ray, Neville 37, 40
– – Salm, Olaf 16
– – Schlaberg, Steffen 17
– – Sievert, Mike 16
– – Slooten, Erik 16
– – Thygesen, Dan 16
– – Vacek, Jiri 16
– – Vasina, Milan 26
– – Wittig, Hannes 42
– Ex-executives
– – Rubim, Camillo 17
– – Zamani, Phil 17
– Germany 6, 17, 20, 23, 24, 26, 27, 28, 34
– Investments
– – Magyar Telekom (see separate) 16, 28, 29
– – OTE (see separate) 15, 16, 20
– Product and Innovation
– – hubraum 20
– Products and services
– – T-Mobile TV 16, 37
– Systems Solutions 31
– – T-Systems 7, 9, 17, 18, 19, 32, 33, 34, 35, 37
– – – Satellic 11
– – – Telekom Security 32
– – – Toll4Europe 11
– Toll Collect 9, 10, 11
– USA 6, 7, 15, 16, 17, 19, 28, 34, 35, 37, 38, 39, 40, 41, 42
Deutsche Telekom Capital Partners 10
Dr. Ing. h.c. F. Porsche AG 17

E

EADS
– Airbus 15
eBay
– PayPal 27
EchoStar Communications Corp. 14
Ericsson 18, 41, 42
Europe
– Albania 7
– Austria 7, 8, 9, 14, 17, 26
– Belgium 7, 11, 33
– Croatia 7
– Czech Republic 7, 20, 26, 27, 28
– Estonia 27
– Finland 13
– France 6, 7, 8, 9, 13, 14, 15, 42
– Germany 6, 7, 8, 9, 10, 13, 14, 15, 17, 18, 19, 20, 22, 24, 26, 32, 33, 35, 42
– – Government 19
– Greece 7, 15, 20
– Hungary 7, 16, 19, 20, 29
– – Gazdasági Versenyhivatal (Hungarian Competition Authority/GVH) 29
– – National Media and Communications Authority (NMHH) 29
– Ireland 42
– Italy 9, 14
– Luxembourg 7
– Macedonia 7
– Montenegro 7
– Netherlands 6, 7, 8, 9, 20
– Norway 13
– Poland 7, 20
– Portugal 9, 13
– Romania 7, 17, 27, 28
– Russia 9
– Slovakia 7, 20, 27
– Spain 7, 9
– Switzerland 13, 17, 19, 33, 34
– Ukraine 9
– United Kingdom (UK) 6, 7, 9, 13, 15, 35, 42
– – Office of Communications (Ofcom) 14, 15
European Organisation for Nuclear Research 19
European Union 6, 13, 18, 20
– European Commission 14, 15
– European Court of Justice 14, 15
Eutelsat Communications 14

F

Facebook 18
Fortumo 27
France Télécom
– Orange 6, 7, 8, 28
– – Poland (see Telekomunikacja Polska) 28
– – UK (see EE, DT) 7
FreeMove Alliance (DT-FT-TeliaSonera-TI) 35

G

Global M2M Assocation (GMA) 35
Gogo 15
GSM Association
– Mobile World Congress 35
GTS Central Europe 16

H

Hamburg Port Authority 20
Hitachi 17
Hrvatski Telekom (see DT, Croatia) 28
Huawei Technologies 11, 26, 28, 32

I

IBM 17, 18, 19, 32
Inmarsat 9, 13, 14, 15
Intel 11, 19, 41
International Airlines Group SA
– British Airways 13, 15
– Vueling Airlines SA 15

K

Kohlberg Kravis Roberts 33
KPN 8, 9

L

Lebara Group 17
LG Electronics 39
Liberty Global
– UPC Austria 26, 28
Liberty Global Inc. 8
– UPC Broadband 26, 28
Lufthansa 13, 15

M

Magyar Telekom (see DT) 16, 28, 29
– Macedonia (Makedonski Telekom/T-Mobile) 16
Market segments
– Machine-to-machine (M2M) 34
– Mobile virtual network operator (MVNO) 34, 35
– Multinational corporations (MNCs) 34
– Value-added services (VAS) 34
MetroPCS Communications Inc.
– Carter, Braxton 42
Microsoft 6, 19
Middle East 7, 17
– Egypt 7
– Iraq 7
– Israel 42
Mojio 34
mopay 27

N

NFON 6
Nokia 13, 15, 20, 35, 38, 41, 42
Northgate Information Solutions Ltd 32

O

OTE (Hellenic Telecom. Org. SA, see DT) 15, 16, 20
– Cosmote 28
– – Albania (Telekom Albania) 28
– – Greece 28

P

PCCW 9
Portugal Telecom 9

R

Reliance-Anil Dhirubhai Ambani Group
– Reliance Communications (RCom) 9
Royal Dutch Shell plc 37

S

Samsung 39
SAP 17, 32
SES S.A. 14
– SES Astra S.A. 14
SK Telecom 9, 35
Slovak Telekom (see DT, Slovakia) 16, 26, 27, 28
Sprint Corporation 40, 41
Swisscom 17
Swyx 6

T

Technology
– 2.5G 40, 41
– 2G 39, 40, 41
– 3G 41
– – Evolved HSPA (HSPA+/I-HSPA)
– – – MIMO 11
– 4G 39
– – Long Term Evolution (LTE) 13, 15, 26, 27, 28, 37, 38, 39, 41
– 5G 11, 18, 19, 20, 37, 38, 40, 41, 42
– DSL 10, 26, 27
– Fibre 7, 10, 23, 24, 26, 27, 29, 42
– Fixed-mobile convergence (FMC) 14
– FTTH 7, 23, 24, 26
– IP 16, 26, 35
– IPTV 37
– M2M 34
– Narrowband Internet of Things (NB-IoT) 19, 20
– OpenStack 32
– R&D 7, 18
– RF 17
– SaaS 19, 33
– Smartphone 38, 40
– Spectrum 39, 41, 42
– – 700 MHz 38, 39, 41
– – 1000 MHz 38
– – 1900 MHz 41
– – 2300 MHz 41
– – 3500 MHz 41
– – Advanced Wireless Spectrum 41
– VDSL 28
– WAN 9
– W-LAN 13
Tele2 28
– Netherlands 28
Telecom Italia 35
– Telecom Italia Mobile 35
Telefonica Group 8
– Europe 26, 28
Telekom Austria 9, 28
– Austria
– – A1 9, 28
Telenor ASA 29
– Hungary 29
Telstra 9
Telus 9
Tencent Holdings Ltd 18
Thales Group 13, 14, 15
Twitter Inc. 40

U

United States Cellular Corp. (US Cellular) 41

V

Value-added services 37
Verizon Communications 38, 39, 40, 41
– Verizon Wireless 40, 41
ViaSat 14, 15
VINCI Group
– Cofiroute, S.A. 9, 10, 11
Vivendi
– SFR (Société Française de Radiotéléphone) 9
Vodafone 8, 26, 29, 35
– Europe Region
– – Czech Republic 26
– – Hungary 29

W

Walt Disney Company, The 19
Wells Fargo 38

About

About Deutsche Telekomwatch

Report: #70
Published: February 2018
Next report: March 2018
For more information visit: Deutsche Telekomwatch