Snapshots and insights from this Deutsche Telekomwatch report…

Report: #70
Covering: February 2018
Next report: March 2018


Nationalisation plan puts Toll Collect JV future in doubt

BMVI looking at structure to protect a new partner from risks associated with Toll Collect’s historical legal disputes. DT has been diversifying beyond challenged JV. Read more…

Höttges: Forget B2C — EU’s digital future is B2B

Tim Höttges voiced optimism that European tech companies can lay down a strong marker in business-to-business markets by focusing on IoT and 5G. China and the USA are too far ahead in the consumer platform space, he said. Read more…

New T-Sys chief Al-Saleh enters with intent

There were more signs of the potential for disruption to T-Systems’ commercial and technology relationships, as part of new Chief Executive Adel Al-Saleh’s plan to revamp the business. Read more…

T-Sys strengthens Brazil footing with IoT-led MVNO

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

DTAG: TMUS seeks allies for densification drive

T-Mobile US mooted that it may expand its tower relationship with Crown Castle in order to support expansion of its vision for small-cell rollout. Read more…


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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