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Deutsche Telekomwatch
This release
: #74
July 2018: 54pp
Releases/year: 10+
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Executive brief

GROUP

Strategy

Höttges doubles down with Trans-Atlantic vision [p.6]

  • TMUS still cousin rather than sibling
  • Onboarding completed; Höttges has new squad in place for new cycle
  • Tiger Tim
  • DT rejects big bang theory
  • Table 1: DT (ex-US) indirect cost reduction strategy composition
  • More FY14-FY18 hangovers
  • Table 2: DT Technology strategy review, FY14-FY18
  • Nemat lays out industrious 5G vision
  • Deals

Flames of Höttges' BT love still flicker [p.13]

  • DT has opening for BT collaboration reboot as Patterson exits

DT discussing new investment fund with other telcos [p.14]

  • Cash in the SoftBank
  • Langheim's rising ambition
  • Look at our track record, guys
  • Table 3: DTCP ventures forth: VC and private equity investments and exits at a glance (to June 2018)
  • Partnerships

DT in operator talks over Access 4.0 expansion [p.17]

  • Fibre cost mitigation a key focus for innovation and procurement

Toll Connect dispute reaches end of road [p.18]

  • Green light from Höttges
  • Table 4: Toll Collect overview
  • DT to exit Toll Collect, but might loop round through the back door

EAN targets business aviation market [p.19]

  • Reasons to be cheerful…
  • …but obstacles and 'kerfuffle' remain
  • Table 5: People movement highlights

GERMANY

  • Strategy

Wössner seeks to cement Germany's growth revival [p.25]

  • No new growth menu
  • Patchy FY14-FY17 record
  • Spend: DT seeks maximum flexibility for fibre strategy
  • Table 6: Germany segment strategic and financial objectives, FY17-FY21

EUROPE

  • Strategy

Gopalan seeks to revive Europe lustre [p.29]

  • 'All-for-one and one-for-all'
  • Dutch separation shows lost EU love
  • Leading from the front
  • Changing the 'why we won't miss this time' storyline
  • Gopalan stamps mark: revamps HQ and moves beyond PANNET
  • Table 7: Europe strategic and financial objectives, FY17-FY21
  • Austria

DT adds Austrian assets to regional TowerCo cache [p.35]

  • Langheim's ever-expanding reach
  • The quality flipside
  • Table 8: Deutsche Funkturm overview, FY17 (31 December 2017)

DT goes NB-IoT roaming with Vodafone [p.37]

  • The scale game
  • Ecosystem building
  • Slovakia

ST ups max LTE speed to 500Mbps [p.38]

  • Hello neighbour, can I borrow your expertise?

SYSTEMS SOLUTIONS

  • Strategy

Al-Saleh unveils the (latest) T-Sys Grand Plan [p.40]

  • Double-take on cost strategy
  • Al-Saleh turns product focus up to eleven
  • Table 9: T‑Sys' “re-defined” portfolio structure
  • Modest targets focus on earnings and cash

USA

  • Strategy

Langheim emerges from shadows as Sprint deal fixer [p.44]

  • Langheim lore
  • Sievert and Ray double-act

FURTHER READING

INDEX

Symbols

3rd Generation Partnership Project (3GPP) 47

A

Africa
- South Africa 37
Alphabet
 - Google 8, 16, 20
Amazon.com Inc. 8
Americas
 - Brazil 22
 - Canada 25
 --North America 15, 22
 - Paraguay 21
 -- United States of America (USA) 6, 8, 16, 20, 22, 29, 31, 33, 37, 43, 45, 46, 47
  -- Federal Communications Commission (FCC) 46, 47
  -- States
    -- Califormia 46
    -- New York 16
    -- Washington 47
Apple 8
AppNexus 14
Asia-Pacific 15, 21
 - Australia 37
 - China 47
 - India 29, 33, 40
Atlantia 19
AT&T 14, 45, 46

B

Baidu Inc. 16
Blackstone Group 44
BT Group 13, 22
 - BT Global Services 22
EE 13

C

Capgemini 22
Cellnex Telecom 16, 35
 - Swiss Towers 16, 35
Cisco Systems 33
Comcast Corp. 16
Comverse Technology 36
Cosmote Romanian Mobile Teleco. SA (see OTE/DT) 33

D

Daimler AG 18, 19
Dell 16
Deutsche Telekom 6, 7, 8, 9, 10, 11, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 25, 26, 27, 29, 30, 31, 32, 33, 35, 36, 37, 38, 40, 41, 42, 44, 45, 46, 47
 - Corporate
  -- Headquarters 36
  -- Deutsche Telekom Capital Partners 14, 35, 45
  -- Deutsche Telekom Strategic Investments 14
    -- AppNexus (see separate) 14
    -- DocuSign (see separate) 16
    -- Fireglass (see separate) 16
    -- Morphisec (see separate) 16
    -- NSONE (see separate) 16
    -- Paxata (see separate) 16
    -- SafeBreach (see separate) 16
    -- Strato (see separate) 45
    -- Swiss Towers (see separate) 16, 35
 - Europe
  -- Austria 21, 32, 35, 37
  -- Croatia (Hrvatski Telekom) 14, 21, 30, 32
  -- Czech Republic 21, 30, 32, 33, 38
  -- Greece (see OTE) 8, 30, 32
  -- Hungary (see Magyar Telekom) 21, 30, 31, 32
  -- International Carrier Sales & Services (ICSS) 16, 32
  -- Montenegro (see Magyar Telekom) 21, 30, 32
  -- Netherlands 21, 29, 35, 36, 37
  -- Poland (Polska Telefonia Cyfrowa/PTC) 21, 32, 36
  -- Romania (see Cosmote Romania/OTE) 33
  -- Slovakia (Slovak Telekom/T-Mobile) 8, 21, 30, 32, 33, 38
  -- UK (EE) 13
 - European Aviation Network 19, 32
 - Executives
  -- Al Saleh, Adel 7, 29, 40
  -- Clemens, Reinhard 40
  -- Dannenfeldt, Thomas 7, 13
  -- Elsner, Andreas 21
  -- Gopalan, Srini 7, 21, 29
  -- Heusschen, Roger 22
  -- Höttges, Timotheus 6, 13, 14, 18, 25, 31, 45
  -- Illek, Christian 7
  -- Jacobfeuerborn, Bruno 35
  -- Korst, Jeremy 22
  -- Kremer, Thomas 18
  -- Langheim, Thorsten 7, 13, 15, 29, 35, 44
  -- Legere, John 7, 22, 29, 45
  -- Michalakis, Dimitris 21
  -- Nemat, Claudia 9, 10, 11, 17, 29, 31, 32, 33
  -- Ray, Neville 7, 46, 47
  -- Schmidt, Frank 21
  -- Sievert, Mike 7, 22, 45
  -- Toet, Leon 21
  -- van Damme, Niek Jan 25
  -- Vasina, Milan 21
  -- Wittig, Hannes 44
  -- Wössner, Dirk 7, 25
  -- Young, Jack 16
 - Germany 8, 9, 21, 25, 26, 27, 31, 36
 - Investments
  -- Magyar Telekom (see separate) 21, 30, 31, 32
  -- OTE (see separate) 21
 - Product and Innovation
  - hubraum 37
 - Products and services
  -- MagentaEINS 27
  -- QIVICON 8
  -- Scout24 45
 - Systems Solutions 7, 39
  -- Telekom IT 40
 -- T-Systems 9, 11, 16, 19, 21, 22, 29, 31, 36, 40, 42
    -- Satellic 19
    -- Telekom Security 36
    -- Toll4Europe 19
 - Toll Collect 18, 19
 - USA 6, 7, 11, 14, 20, 22, 29, 44, 45, 46, 47
Deutsche Telekom Capital Partners 14, 15, 16
Deutsche Telekom Strategic Investments 14
Dido 21
DocuSign 16

E

EchoStar Communications Corp. 20
Ericsson 38, 47
Europe
 - Austria 8, 19, 22, 33, 35, 37
 - Belgium 19, 20
 - Central & Eastern Europe (CEE) 22
 - Croatia 10, 21, 30, 32, 33, 37
 - Czech Republic 19, 21, 33, 37
 - France 18, 32
 - Germany 6, 7, 8, 9, 10, 13, 16, 17, 18, 19, 21, 24, 25, 26, 27, 29, 30, 31, 32, 35, 36, 37, 41, 42
  -- Government 19
 - Greece 10, 30, 32, 37
 - Hungary 10, 31, 32, 37
 - Ireland 37
 - Italy 8, 19
 - Netherlands 8, 22, 29, 33, 35, 37
 - Norway 8, 20
 - Poland 10, 21, 33, 36, 37
 - Romania 7, 10, 21, 32, 33
 - Russia 16
 - Slovakia 10, 21, 32, 33, 37, 38
 - Spain 16, 37
 - Switzerland 16, 20, 21, 35
 - United Kingdom (UK) 13, 20
European Union 20, 29
 - European Commission 20
 - European Court of Justice 20
EWE
 - EWE Tel 27
Expedia 22
Experian plc 45

F

Facebook
 - Telecom Infra Project 17
Fireglass 16
Flybridge Capital Partners 16
France Télécom
 - Orange 22
 - UK (see EE, DT) 13
Fraport AG 30

G

Gogo 20
Goldman Sachs 16
GSM Association (GSMA) 37
Mobile World Congress 41

H

Hewlett-Packard 16, 22
Hrvatski Telekom (see DT, Croatia) 14, 21, 30, 32
Huawei Technologies 29, 38, 47

I

Inmarsat 19, 20
Intel 16
 - Intel Capital 16
International Airlines Group SA
 - British Airways 19, 20
International Monetary Fund 14

K

KPN 8, 29

L

Liberty Global
 - UPC Austria 32
Liberty Global Inc.
UPC Broadband 32

M

Magyar Posta Pal Szabo 22
Magyar Telekom (see DT) 21, 30, 31, 32
 - Macedonia (Makedonski Telekom/T-Mobile) 21, 30, 32
 - Montenegro (Crnogorski Telekom) 21, 30, 32
 - T-Systems Hungary 22
Microsoft 16, 22, 33
Middle East 15
 - Israel 16
 - Saudi Arabia 14
Miele & Cie. KG 8
Millicom International Cellular
 - Tigo Ghana 21
Morphisec 16
Motorola Mobility Holdings Inc. 30

N

News Corp. 14
Nexmo 16
Nokia 20, 47
Norwest Venture Partners 16
NOVATOR 13
NSONE 16

O

OpenText 22
OTE (Hellenic Telecom. Org. SA, see DT) 21
 - Cosmote 8, 21, 30, 32, 33
  -- Albania (Telekom Albania) 32, 33
  -- Greece 8, 30, 32
  -- Romania 33
Romania (Romtelecom) 33

P

Paxata 16
Philips 8
PPF Group 19
PricewaterhouseCoopers 14

Q

Qatar Telecom (Qtel) 16
Qualcomm 38

R

Radware Ltd 36
Reliance-Anil Dhirubhai Ambani Group
 - Reliance Communications (RCom) 33
RWE AG 30

S

SafeBreach 16
Salesforce 22
Samsung 16
SAP 21, 33, 41
Saudi Telecom Company 21
Sequoia Capital 16
Sigma Prime Ventures 16
Singapore Telecom 16
Slovak Telekom (see DT, Slovakia) 8, 21, 30, 32, 33, 38
SOFTBANK CORP. 14, 47
Sonos 8
Splunk Inc. 36
Sprint Corporation 6, 8, 14, 22, 44, 45, 46, 47
Strato 45
Sunrise 16
Symantec 16
Syniverse Technologies 22

T

Target Corporation 41
Technology
 - 2.5G 45, 47
-
2G 45, 47
  -- GSM 37
 - 3G
  -- Evolved HSPA (HSPA+/I-HSPA)
  -- MIMO 38
 - 4G 11
  -- Long Term Evolution (LTE) 10, 20, 37, 38
 - 5G 11, 22, 38, 47
 - Billing 30
 - BSS 6, 9, 10
 - DSL 17
 - Fibre 17, 27, 32
 - Fixed-mobile convergence (FMC) 33
 - GPS 18
 - IP 10, 27, 30, 31, 42
 - Narrowband Internet of Things (NB-IoT) 37
 - OTA 47
 - R&D 17
 - SIM 37
 - Smartphone 47
 - Spectrum 38
 - WAN 16, 42
 - W-LAN 19, 20, 30, 32
Tele2 29
 - Netherlands 29
Telekom Austria 21
Telstra 16
Two Sigma Investments
Two Sigma Ventures 16

V

Vattenfall 8
Verizon Communications 46
Vertex 16
ViaSat 20
VINCI Group
 - Cofiroute, S.A. 18
Vodafone 25, 37
 - Europe Region
 - Germany 25
Spain 37

W

WPP 14

  • The two NB-IoT frontrunners in Europe fittingly complete region’s first international roaming trial.
  • Project uses T-Mobile Austria network, as part of NatCo’s in-Group IoT hub role.

Deutsche Telekom (DT) and arch-rival Vodafone Group successfully completed Europe’s first international roaming trial using standardised Narrowband Internet of Things (NB-IoT) technology.

The trial – announced by the GSM Association (GSMA), perhaps for the sake of neutrality – was performed using international SIM cards from DT on Vodafone Spain’s network, and Vodafone SIMs on T-Mobile Austria’s (TMAT) network (accentuating TMAT’s position as a European hub for Group IoT initiatives – Deutsche Telekomwatch, #66). Commercial NB-IoT modules were used, although the GSMA did not name the suppliers.

Both DT and Vodafone are frontrunners in Europe when it comes to deploying NB-IoT. T-Mobile Netherlands (TMNL) was first out of the NB-IoT traps for DT, launching in May 2017. Vodafone kicked off its European NB-IoT rollout in Spain, where commercial services began in January 2017.

The scale game

The industry hopes that, once roaming is in place, NB-IoT projects can be more easily scaled, and the price of modules and devices will be pushed down.

The GSMA highlighted that NB-IoT roaming was critical for use-cases such as logistics tracking, where containers cross numerous international borders on a single trip, as well as for devices that are manufactured in one country but deployed in another, such as smart-meters.

DT jointly developed roaming test cases in partnership with Vodafone, such as power-saving mode, long periodic tracking area updates, and “various throughput and round-trip time measurements”. The trials were intended to provide guidance to other operators in delivering a consistent level of implementation, added the GSMA.

Both DT and Vodafone back the GSMA’s Mobile IoT Initiative, along with 70 other operators. Mobile IoT is the GSMA’s umbrella term for NB-IoT and LTE-M, both of which are low-power wide area (LPWA) networks using licensed spectrum, and designed to compete with non-cellular rivals. As of early-June 2018, the GSMA said that 29 operators had launched 51 commercial Mobile IoT networks around the world.

  • DT looks to have so far launched ten NB-IoT networks, either on a commercial or pilot basis. NB-IoT support can be found in Austria, Croatia, Czech Republic, Germany, Greece, Hungary, the Netherlands, Poland, Slovakia, and the USA (Deutsche Telekomwatch, #73). As of April 2018, Vodafonewatch reported that Vodafone had launched commercial NB-IoT services in seven markets: Australia, Czech Republic, Germany, Ireland, the Netherlands, South Africa, and Spain (Vodafonewatch, #164).

Ecosystem building

The roaming project has evident tie-in with various efforts DT is making to stimulate the NB-IoT ecosystem, including through the launch of the WARP NB-IoT programme set up by Group incubator hub:raumKraków and DT in summer 2017 (Deutsche Telekomwatch, #70). In November 2017, it established the European Smart Solutions Centre in Budapest, with a focus on the development and implementation of NB-IoT-based smart-city solutions in Europe.

Despite these efforts, DT has indicated that IoT in general remains a loss-making area for the Group, but one it is seeing backing for in terms of people and platform investments under its emerging “Big IoT” drive (Deutsche Telekomwatch, #71 and #72; see SAP bags early spot in T-Systems’ ‘Big IoT’ mission).

Image: Deutsche Telekom

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