Deutsche Telekomwatch
This release
: #84
June 2019: 44pp
Releases/year: 10+
Click for more details of this release

A

Africa 10, 32

Congo 10

Alphabet

Google 15

Android 15, 24

Amazon.com Inc. 11, 21, 38

Americas

Brazil 11

North America 11

United States of America (USA) 10, 11, 13, 14, 15, 24, 32, 33, 34, 38, 39, 41

Department of Justice (DoJ) 24, 38

Federal Communications Commission (FCC) 34, 35, 36, 41

Federal Trade Commission (FTC) 35

Apple 24

iOS 24

iPhone 24

ARM 15, 39

Asia-Pacific 15, 32

China 13, 14, 15, 39

Singapore 38

Atos 28

AT&T 24, 34, 35, 36

B

BMW 9

British Standards Institute (BSI) 14

BT Group 38

EE 12, 15

C

Capgemini 11

Comcast Corp. 38

Computacenter

Allnet 35, 36, 41

Continental AG 32

D

Daimler AG 9, 10, 30

Deutsche Telekom 7, 8, 9, 10, 11, 12, 13, 14, 15, 17, 18, 19, 20, 21, 23, 24, 25, 26, 28, 29, 30, 32, 34, 35, 36, 38, 40, 41

Corporate

Headquarters 32

Deutsche Funkturm 21

Deutsche Telekom Capital Partners 15

Guardicore (see separate) 15

Telekom Innovation Pool 12

Comfortcharge 21

Droniq 12

Europe 7

Austria 7, 8, 11, 23, 26

Croatia (Hrvatski Telekom) 7, 8, 9, 11, 24

Czech Republic 7, 8, 24

Greece (see OTE) 24

Hungary (see Magyar Telekom) 8, 24

Montenegro (see Magyar Telekom) 7, 8, 11

Netherlands 7, 8, 14, 26

Poland (Polska Telefonia Cyfrowa/PTC) 7, 8, 11, 25, 26

Slovakia (Slovak Telekom/T-Mobile) 7, 8

UK (EE) 12, 15

European Aviation Network 26

Executives

Al Saleh, Adel 29, 30

Bohle, Birgit 10

Clauberg, Axel 29

Daub, Daniel 11

Dodd, Alison 30

Höttges, Timotheus 9

Illek, Christian 29

Junker, Claudia 10

Klingenburg, Peter 11

Kremer, Thomas 10

Pedroso, Alexandre 11

Ray, Neville 36

Rochel, Michael 11

Rode, Christoph 30

Tsamaz, Michael 6

Vadas, Gergely 11

Wössner, Dirk 18, 40

Ex-executives

Melles, Manuel 10

Schaefer, Anette 10

Germany 8, 11, 18, 19, 20, 21, 24

Investments

Magyar Telekom (see separate) 8, 24

OTE (see separate) 6, 7, 8, 39

Product and Innovation

hubraum 10

Products and services

nuSIM 24

Systems Solutions 11, 27, 41

T-Systems 8, 11, 28, 30, 31, 32, 41

Toll4Europe 30

Toll Collect 10

USA 8, 10, 11, 24, 34, 35, 36, 37, 38, 41

Deutsche Telekom Capital Partners 15

Drillisch AG 17, 18, 19

E

EchoStar Communications Corp.

Dish Network 35, 38

Emblaze Group

European Telecom 10

E.ON AG 11

Ericsson 9, 10, 13, 19, 37

Europe

Albania 7

Austria 7, 10, 11, 21, 23, 30, 40

Belgium 30

Central & Eastern Europe (CEE) 31, 32

Croatia 7, 10, 23, 24, 31

Czech Republic 7, 23, 31, 39

France 11, 30

Germany 8, 9, 10, 11, 12, 13, 14, 16, 17, 18, 19, 20, 21, 23, 28, 30, 32, 40, 41

Bundeskartellamt 28, 41

Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA) 14, 17, 18, 19, 20, 40

Bundesverband der Energie- und Wasserwirtschaft 21

Government 9

Greece 6, 7, 8, 23, 31

Hungary 7, 11, 23, 24, 31

Ireland 30

Macedonia 31

Montenegro 23, 31

Netherlands 13, 14, 23

Government 14

Poland 7, 23, 25, 26, 31, 40

Portugal 30

Romania 6, 7, 8, 23, 31

Slovakia 7, 23, 31

Spain 30, 32

Sweden 21

Switzerland 10

Ukraine 8

United Kingdom (UK) 11, 30, 39

British Standards Institute (BSI) 14

European Union 9

European Commission 9, 32

European Parliament 9

F

Facebook 12

Finanz Informatik GmbH & Co. KG 28

France Télécom

Orange 8, 25, 26, 38

Poland (see Telekomunikacja Polska) 25

Romania 8

Fraunhofer Institute 12

G

Goldman Sachs 38

GSM Association (GSMA) 9, 24, 32

Mobile World Congress 24

Guardicore 15

H

Hrvatski Telekom (see DT, Croatia) 7, 8, 9, 11, 24

Huawei Technologies 9, 13, 14, 15, 19, 32, 39

I

IBM 28, 29, 41

Inmarsat 26

Intel 35

International Airlines Group SA

British Airways 26

K

KPN 14

L

Land Rover 9

Liberty Global Inc. 7

LivePerson 10, 38

M

Macquarie Bank 25

Magyar Telekom (see DT) 8, 24

Macedonia (Makedonski Telekom/T-Mobile) 7, 8

Montenegro (Crnogorski Telekom) 7, 8, 11

Romania

Combridge 8

Microsoft 31, 32, 41

Middle East 10

N

Nokia 9, 13, 19, 26

Novatel Wireless 8

NXP Semiconductors 9

O

Open Handset Alliance (OHA)

Android 15, 24

OTE (Hellenic Telecom. Org. SA, see DT) 6, 7, 8, 39

Cosmote 24, 39

Albania (Telekom Albania) 7

Greece 24

Germanos 24

Tsamaz, Michael 6

Q

Qualcomm 9, 35

R

Rathbone 30

Renault 9

Rhenus Group 12

Romania Cable Systems & Romania Data Systems (RCS & RDS) 8

Royal Dutch Shell plc 30

S

Samsung 21, 24

Sanford C. Bernstein & Co. 10

SAP 11, 30

Singapore Telecom 38

Slovak Telekom (see DT, Slovakia) 7, 8

Software AG 10

Sprint Corporation 35, 36, 38

Starbucks Corp. 11

Syniverse Technologies 11

T

Technology

2.5G 36, 38

2G 36, 38

GSM 9, 24, 32

4G 24, 39

Long Term Evolution (LTE) 37

5G 8, 9, 13, 14, 15, 17, 18, 19, 20, 34, 35, 36, 37, 39, 40, 41

BSS 40

Fibre 26

M2M 23

MAN 9

Narrowband Internet of Things (NB-IoT) 12

OSS 40

SIM 23, 24

Spectrum 17, 18, 34, 35, 37, 40

700 MHz 36

Advanced Wireless Spectrum 34

Telemedicine 13

W-LAN 9, 24

Telefonica Group 18, 19, 20

Telekom Austria 23, 40

Telstra 38

ThyssenKrupp AG 10

Toyota 9

U

United States Cellular Corp. (US Cellular) 34, 35, 36

V

Value-added services 20

Verizon Communications 24, 34, 35, 36, 37, 41

Vodafone 7, 9, 11, 12, 18, 20

Europe Region

Germany 18

Romania 7, 11

Volkswagen AG 9

W

Warburg Pincus LLC 25

Wien Energie GmbH 11

Windstream Corp. 35

Z

ZTE Corp. 14

 

 

Executive brief

Group

Deals: “All options” being explored in Romania [p6]

  • Table: Deutsche Telekom, Europe area revenue by territory (adjusted), FY18

5G spectrum cost sensitivities heightened, post-German auction

  • Table: DT “principal subsidiaries” and their affiliates

Deals

Legal and regulatory

Supply chain

  • Table: Partner/supplier people movement highlights

People [p10]

  • Table: People movement highlights

Partnerships

Supply chain: DT keeps head down but Huawei problem not going away [p13]

  • Prague Proposals
  • US-China trade war ratchets up
  • Huawei feels pinch

USA & Corporate Development

Germany

Strategy: DT left with “bitter aftertaste” from German 5G auction [p17]

Regrets, we've got a few

  • Table: 2GHz and 3.6GHz licence auction outcome

Site locations and rural cooperation

Headmaster Homann

See you in court, BNetzA

  • Table: Not playing by the BNetzA rulebook

Empowered BNetzA reminds operators of coverage responsibilities

Partnerships

Europe

Austria: Magenta Telekom rows back on eSIM [p23]

  • Standards please

Poland: TMPL does broadband access deal number-three [p25]

  • M&A lever yet to be pulled, though

Deutsche Telekom Global Carrier

Poland

Systems Solutions

Deals: IBM mainframe offload doesn't compute for watchdog [p28]

  • More M&A options, says CEO
  • T-Sys turnaround looks to be proving heavy going
  • Table: T-Sys's “re-defined” portfolio structure

Operations

Partnerships: T-Sys strengthens cloud ties with Microsoft [p31]

  • More T-Sys cosying up to Microsoft
  • Deeper and deeper

USA

Operations

Network: TMUS adds mmWaves; maintains multi-band 5G focus [p34]

  • Table: Top-five bidders for 24GHz and 28GHz licences
  • Waves and ripples
  • Table: Weighing in after Auction 101 and Auction 102
  • mmWave icing on 5G cake, once software niggles sorted
  • Ray disses DSS claims by Vestberg

Deals

Supply chain

Further reading

  • Growing mix of fiscal, regulatory, and competitive difficulties looks to have made Group’s sceptical towards Telekom Romania’s prospects.

Michael Tsamaz, Chairman & Chief Executive (CEO) of OTE Group, confirmed the Greek telecoms player was considering jettisoning challenged NatCo Telekom Romania (TR).

Speaking during OTE’s latest results presentation, held in May 2019, Tsamaz indicated its 54%-stake in TR and other local interests could soon be put in play, despite claims of progress in efforts to improve its competitive fortunes.

While we are focusing on revising our operational performance [in Romania], on the same front, we are exploring all of our options as diligently as we do with our operational excellence in order to have all options open. And at this point of time, I cannot say more things. But I can assure you we are fighting on both fronts, both operational excellence and concluding what is the best thing to do strategically with the asset. ” – Tsamaz, via CQ FD Disclosure.

A subsequent report by Romanian newspaper Ziarul Financiar suggested OTE was preparing to perform an EUR800m capital increase in Telekom Romania Mobile Communications (TRMC), TR’s mobile arm, apparently with the purpose of reducing TRMC debt and freeing the way for a sale.

Historical debt attached to TRMC is a “problem” that hindered amalgamation of the two Romanian businesses and needs tidying up for a sale to go through, the newspaper intimated. In a convoluted local ownership structure, TR is 54.01%-owned by OTE and 45.99%-owned by the Romanian government. OTE holds 70% of TRMC shares and TR the remaining 30%.

Better out than in

Both Deutsche Telekom (DT) and OTE are evidently in tidy-up mode when it comes to peripheral and/or under-performing NatCos in Europe, having offloaded Telekom Albania to Bulgarian-based venture Albania Telecom Invest (ATI) earlier in 2019 (Deutsche Telekomwatch, #80). Other regional businesses have been strengthened through acquisitions, such as T-Mobile Austria and T-Mobile Netherlands, or mandated to extract a new range of efficiencies through in-Group soft consolidation, as in the case of Slovak Telekom-T-Mobile Czech Republic and Crnogorski Telekom-Hrvatski Telekom (Deutsche Telekomwatch, passim).

TR was highlighted by DT as a problem NatCo during the Group’s May 2018 Capital Markets Day, and Group feelings towards Romania will have been further downgraded in December 2018, with the announcement of a new special “Greed Tax” and regulatory tightening measures by the country’s government (Deutsche Telekomwatch, #79 and #80).

TR saw significant drops in both revenue (-4%) and core earnings (-17%) during the year to 31 December 2018, and is currently bracketed in DT’s “Converged Challenger” second-division of Europe segment NatCos, seen as in need of upgrade work to conform with the Group’s full-service vision. The business also faces a new, convergence-focused twist in Romania’s competitive story with rival Vodafone Romania’s pending takeover of cable operator UPC Romania.

Funds raised from a sale of TR could potentially be used to promote the Europe area’s other two Converged Challengers – T-Mobile Czech Republic and T-Mobile Poland – to Converged Leader status, either through organic or inorganic spend.

For more on this story, including a table outlining Deutsche Telekom’s revenue by territory, subscribe to access the full June release of Deutsche Telekomwatch.

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