Deutsche Telekomwatch
This release
: #85
July/August 2019: 72pp
Releases/year: 10+
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A

Accenture 33

Adtran 46, 47, 69

Africa 12

South Africa 60

Akzo Nobel N.V. 15

Alphabet

Google 42, 60

Android 42

Amazon.com Inc. 8, 24, 60

Amdocs 26

Americas

Brazil 15, 60

Canada 52, 67

Mexico 67

North America 15, 52

United States of America (USA) 6, 7, 12, 14, 15, 47, 51, 52, 58, 61, 65, 66, 67, 70

Department of Justice (DoJ) 6, 7, 68

Federal Communications Commission (FCC) 6, 8, 64, 66

States

Califormia 65

Maryland 66

New York 63

Ohio 65

Washington 64

Apple 60

Asia-Pacific 9, 10

Australia 52

China 30, 42, 47

South Korea 10, 11

AT&T 7, 21, 30, 50, 52, 66, 67, 70

B

Battery Ventures 11

BearingPoint 26

Bloomberg L.P. 28

BMW 13

BT Group 12, 13, 25, 26, 28, 47

BT Global Services

BT iNet 31, 32, 34, 35

EE 12, 13

Openreach 47

C

Carl Zeiss 9, 10

Český Telekomunikační Úřad (ČTÚ) 49, 69

China Mobile

Research Institute 45

China Telecom 30

Chunghwa Telecom 26

Cisco Systems 11, 17

CK Hutchison

Three Group

Three UK 35

Computacenter

Allnet 63

Cumulocity 58, 59

D

Daimler AG

Mercedes-Benz 17

Deutsche Telekom 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 21, 24, 25, 26, 27, 28, 29, 30, 39, 40, 41, 42, 43, 44, 45, 46, 47, 49, 50, 51, 52, 53, 54, 55, 56, 58, 59, 60, 63, 64, 65, 67, 68, 69, 70

Corporate

Headquarters 41, 44, 65

Deutsche Telekom Capital Partners 9, 68

Deutsche Telekom Strategic Investments 10

Dynamic Signal (see separate) 11

Fastly (see separate) 11

Guardicore (see separate) 10, 11

Mojio (see separate) 67

Pipedrive 10, 11

Telekom Innovation Pool 11

MobiledgeX 16

tooz technologies 9

Europe 27, 28, 54, 56

Austria 15, 16, 51, 56

Croatia (Hrvatski Telekom) 26, 28

Czech Republic 14, 49, 50, 56

Hungary (see Magyar Telekom) 13, 28, 52, 53, 69

Netherlands 14, 56

Poland (Polska Telefonia Cyfrowa/PTC) 14, 15, 55, 69

NetWorkS! 56

Slovakia (Slovak Telekom/T-Mobile) 14

UK (EE) 12, 13

Executives

Al Saleh, Adel 59

Curley, Stuart 15

Dodd, Alison 15

Eger, Stephan 14

Gopalan, Srini 28

Hadrbolec, Pavel 14

Hensen, Leo 14

Henze, Thomas 16

Höttges, Timotheus 11, 12, 13, 54

Illek, Christian 14, 40

Katz, Mike 65

Legere, John 8, 62

Libovsky, Volker 15

Lips, Thomas 14, 15

Meijer, Erik 24

Nemat, Claudia 44, 45

Pehkonen, Petri 15

Ray, Neville 64

Vento, Vicente 9

Wössner, Dirk 41, 46

Young, Jack 10

Ex-executives

Bronder, Anette 15

Geha, Jean-Claude 14

Germany 15, 16, 40, 41, 42, 43, 44, 45, 46, 47, 55, 69

Investments

Magyar Telekom (see separate) 13, 28, 52, 53, 54, 69

OTE (see separate) 12

Product and Innovation

hubraum 44

Telekom Innovation Laboratories (T-Labs) 17

Products and services

Smart Connect 16

Systems Solutions 15, 57, 70

T-Systems 15, 52, 53, 54, 58, 59, 60, 65, 67, 69

Telekom Security 51, 60

Technology

harmonised application programming interface (HAL) 27

OneApp 27, 28, 29, 30

USA 6, 7, 8, 15, 58, 62, 63, 64, 65, 66, 67, 68, 70

Deutsche Telekom Capital Partners 9, 10, 11, 68

Drillisch AG 43

du (Emirates Integrated Telecommunications) 26

Dynamic Signal 11

E

EchoStar Communications Corp.

Dish Network 7, 68

Electronic Frontier Foundation 67, 70

Elisa 15

Energous Corporation 65

Ericsson 14, 26, 28, 44, 45, 52, 62, 64, 70

Europe

Austria 14, 15, 27, 51, 52, 56, 67, 69

Croatia 26, 27, 51

Czech Republic 27, 39, 49, 50, 51, 67, 69

Czech Telecommunications Office (CTU) 69

Finland 15

France 12, 13, 16

Germany 9, 13, 15, 17, 27, 30, 38, 39, 40, 41, 43, 44, 45, 46, 47, 51, 52, 54, 58, 59, 60, 67, 69

Bundesnetzagentur (BNetzA, or German Federal Network Agency) 43, 44

Bundesnetzagentur für Elektrizität, Gas, Telekommunikation, Post und Eisenbahnen (BNetzA, RegTP, FNA, or German Federal Network Agency) 43, 69

Government 13

Greece 27, 51, 52, 69

Hungary 14, 27, 28, 39, 51, 52, 53, 54, 69

Italy 13

Macedonia 27, 51

Montenegro 27

Netherlands 15, 27, 51

Poland 14, 27, 51, 55, 56, 67, 69

Portugal 60

Romania 15, 27, 39, 51, 56, 69

Scandinavia 15

Serbia 12

Slovakia 27, 51, 65

Spain 59, 60

Switzerland 15, 60

United Kingdom (UK) 12, 13, 15, 47

European Union 13, 44

Council of the European Union 68

European Commission 13, 39, 51, 69

EXFO 20, 21, 31, 32, 33, 34, 35, 36

F

Fastly 11

France Télécom

Orange 12, 13, 14, 26, 28, 56

Poland (see Telekomunikacja Polska) 56

UK (see EE, DT) 12, 13

G

Gemalto NV 17

GitHub Inc. 17

Google 21

GSM Association

Mobile World Congress 11

GSM Association (GSMA) 13, 16

Guardicore 10, 11

H

Hamburg Port Authority 44

HarbourVest Partners 9

High Tech Computer Corp. (HTC) 42

Hrvatski Telekom (see DT, Croatia) 26, 28

Huawei Technologies 28, 41, 42, 45, 47, 69

I

IBM 15, 26, 28, 33, 60

IDEMIA 16

Infosys Technologies 26

Intel 64

K

KPN

iBasis 14

L

LG Electronics 42

Liberty Global

UPC Austria 15

Liberty Global Inc. 15, 39, 69

Unitymedia GmbH 15, 40

UPC Broadband 15, 51

Germany (Unitymedia) 15, 40

M

Magyar Telekom (see DT) 13, 28, 52, 53, 69

T-Systems Hungary 52, 53, 69

Market segments

Mobile virtual network operator (MVNO) 26, 65

Microsoft 11, 60

Skype 24

Middle East 12, 67

Israel 10, 11

Mojio 67

N

NASDAQ 69

Netflix 55

Nokia 44, 45

NTT 26

O

OASIS 26

Ontology Systems 32

Open Handset Alliance (OHA)

Android 42

Oracle 25, 28

Orange 23, 35

Osram 44

OTE (Hellenic Telecom. Org. SA, see DT) 12

Cosmote 52

P

Phones4U 13

Pipedrive 10, 11

Q

Qualcomm 60, 62, 64, 68, 70

R

Remedy 6

Rhenus Group 59

S

Salesforce 30

Samsung 42, 62, 70

SAP 15

Siemens AG 17, 60

Sistema 59

SK Telecom 9, 10, 68

Slovak Telekom (see DT, Slovakia) 14

Software AG 58, 59, 70

Sprint Corporation 6, 7, 8, 62, 63, 64, 65, 66, 67, 68

Boost Mobile 7

Swisscom 11

T

Technology

2.5G 7, 64

2G 7, 16, 64

GSM 13, 16

3G 16, 22

Evolved HSPA (HSPA+/I-HSPA)

MIMO 24

4G 13, 16, 50, 63, 67

Long Term Evolution (LTE) 13, 16, 42, 44, 62, 67

5G 7, 9, 10, 11, 13, 20, 22, 23, 24, 25, 26, 31, 32, 33, 35, 36, 41, 42, 43, 44, 45, 47, 49, 50, 51, 52, 54, 62, 63, 64, 67, 68, 69, 70

Artificial intelligence 20

BSS 69

CRM 11

DVB 43

DVB-T 43

Fibre 30, 32, 39, 41, 47, 55, 56

Fixed-mobile convergence (FMC) 29

Linux 26

LTE-Vehicular (LTE-V) 13

MPEG 11

Narrowband Internet of Things (NB-IoT) 45, 65

OSS 28, 69

OTA 65

Personal computer 60

RF 65

SaaS 10

SIM 16, 65

Smartphone 16, 42, 62, 67

Spectrum 43, 46, 51, 63

700 MHz 7, 43, 49, 50, 51, 64, 67, 69

800 MHz 7, 8, 51

900 MHz 50

1800 MHz 50, 51

2100 MHz 43, 51

2300 MHz 51

2600 MHz 51

W-LAN 13, 16

Telecom Italia 26

Telefónica 21

Telefonica Group 13, 28, 40, 43

Europe 49

UK 13

Telekom Srbija a.d. 12

TeleManagement Forum

TM Forum 24, 25, 26, 27, 28, 30

Telenor 32, 34

Telenor ASA 14, 28

Hungary 14

Telstra 52

Telus 26, 52

Texas Pacific Group (TPG) 11

TM Forum 20

tooz technologies 9

V

Venfin Ltd

Tracker Network (Proprietary) Limited (TRACKER) 52

Verizon Communications 7, 26, 65, 66, 67

Virgin Group

Virgin Mobile 7

Vodacom Group

Gateway Communications 52

Vodafone 10, 13, 15, 21, 23, 25, 26, 28, 39, 40, 41, 42, 43, 49, 59, 69

Europe Region

Czech Republic 49

Germany 40, 42, 69

UK 13, 42

W

Wal-Mart Stores Inc. 65

WhatsApp Inc. 24

World Economic Forum 50

X

Xiaomi 42

Executive brief

Group

Deals: DT and TMUS find key to unlock Sprint treasures [p6]

Carve-out confirmed

Remedies remedied

Trans-Atlantic dream close

DT strengthens ties with SK Telecom, Zeiss [p9]

DTCP now a 'platform'

Fund fecundity

Table: Fund II ventures forth with handful of investments

DT gets into 5G testbed with SKT

Höttges and Park Jung-ho double act

Figure: BT Group share price

Partnerships

Legal and regulatory

People

Table: People movement highlights

Technology & Innovation

Digital Transformation World 2019

TM Forum: DTW19 underlines need for collaboration and speed [p20]

Meijer and Kulkarni among the high-flyers

Get the full Digital Transformation World 2019 Special Report

Collaboration a constant in tumultuous times

Foundations for 5G (and maintaining relevance)

A living framework

Technology & Innovation: DTW 2019: introvert telcos plan mould-breaking 5G party [p24]

Operators admit they need to be better at making 5G friends

Fast telecoms: repeatability and openness

Catalyst updates

HAL's odyssey: DT grows API framework to drive savings

Shiny API people: the moving parts and players

Table: Europe Region strategic and financial objectives, FY17-FY21

Next steps: HAL goes shopping…

… and turns on TV, while tying it all together with experience data

APIs for fibre

An open (API) future

Profile: EXFO offers assurance in changing world [p31]

About EXFO's Service Assurance division

Strategic priorities for an automated future

Change as a constant in virtual world

Telenor partnership highlights common cause

Passive potential runs deep

Three UK showcases assurance for virtualised infrastructure

Catalyst contributions provide additional proof

5G and a more consultative way of doing business for vendors and operators

Germany

Legal and regulatory: DT up in arms over Vodafone-Liberty approval [p39]

The remedies don't work (for DT)

Network: TDE makes tentative 5G start with limited rollout [p41]

No data limits, but smartphone choice restricted

Vodafone bolder on coverage and go-to-market

Coverage? Much obliged

Coverage battleground

Bonn on-boarded for 5G testing; end of Monarch's reign in Hamburg

Huawei still under review

Supply chain: TDE likely suspect as Adtran trims revenue guidance [p46]

Business as usual next year?

US-China battle on super-vectoring

Europe

Czech Republic: New entrant plan resurfaces ahead of 5G auction [p49]

The fourth dimension

5G spectrum auction: key rules in draft

Other 5G tweak requests

DT's 5G shopping list remains lengthy, although big items ticked off

Table: Deutsche Telekom's Europe spectrum agenda FY19-20

Austria

Deutsche Telekom Global Carrier

Greece

Hungary

Hungary: Magyar Telekom gets out of enterprise [p53]

An abrupt turn for the exit

DT reading the political runes

Poland: TMPL completes two-year convergence reboot [p55]

Connectivity curbs

Crunch time for TMPL's promotion bid

Systems Solutions

Partnerships: Software AG reworks flagship cloud deal [p58]

From handshake to dap

Contracts

Supply chain

USA

Strategy: TMUS makes low-key 5G entrance [p62]

No 5G premium

Patchy mmWave coverage

Low-band prep

Commercial

Legal and regulatory: TMUS seeks arbitration in location data sales outcry [p66]

Network

Products and services

Further reading

  • DTCP in partner mode to sustain investment aggression.
  • Group looking to Asia for next wave of startup relationships.

Deutsche Telekom (DT) and SK Telecom (SKT) expanded their strategic partnership through investment management arm Deutsche Telekom Capital Partners (DTCP) and a 5G joint venture (JV).

SKT has reportedly invested $30m (€27m) in DTCP’s second “venture and growth” fund (Fund II).

Carl Zeiss – a German optical systems manufacturer that has tied with DT on tooz technologies, a 50:50 JV focused on ‘smart-glasses‘ and edge computing technology (Deutsche Telekomwatch, #75) – has also backed the new vehicle. How much Zeiss invested was not officially disclosed, but the combined extra capital took total money raised by Fund II to $350m, surpassing the €250m venture capital (VC) pot allocated to DTCP’s first fund, launched in 2015.

DTCP now a ‘platform’

Vicente Vento, Chief Executive (CEO) of DTCP, heartily welcomed SKT and Zeiss into the fold. “This is an important milestone in DTCP’s development from a single LP [Limited Partner] into a multi-LP technology investment platform”, he said. “Our first venture and growth fund’s track record since inception in 2015 has helped us attract top-tier corporate and financial investors”, he added.

DTCP subsequently announced it was closing the second fund to further investors. Existing fund backers include DT, HarbourVest Partners, and Neuberger Berman.

Fund fecundity

DT first flagged plans to open up a second, partner-backed fund at its last Capital Markets Day back in May 2018, but had largely remained quiet on progress with the new vehicle and has evidently taken some time to firm up co-investor relationships (Deutsche Telekomwatch, #74).

The move represents a clear vote of confidence from Group leadership in DTCP, which has been aggressively pursuing strategic and financial growth opportunities in telecoms and IT, at a time when rival operators (such as Vodafone) have been pulling back from corporate investment. At the 2018 event, DT revealed that DTCP had made 35 deals and five exits to that point (as well as enabling numerous other sales of legacy investments by both predecessor unit T-Venture and DT), and had achieved an internal rate-of-return on the five exits amounting to an impressive 70% (Deutsche Telekomwatch, #47 and passim).

The new fund brings an expansion of DTCP’s scope, although to what extent is not immediately clear. Piecing things together from various Group pronouncements since its inception, DT handed DTCP a €450m purse to pursue investments when it came into being – with €250m of this directed to the first VC fund, and €200m for “special situations” (i.e. larger scale M&A). At the time of the SKT and Zeiss announcement in June 2019, DTCP said it was managing or advising on assets worth $1.7bn, although did not drill down into the split between Fund I, Fund II, and legacy investments.

In terms of focus areas, DTCP indicates Fund II will centre on enterprise software-as-a-service (SaaS) specialists working in the fields of cloud and network infrastructure (such as US vendors Guardicore and Pipedrive – early Fund II investments highlighted in 2018), as well as 5G and Internet of Things, digital enterprise, cybersecurity, artificial intelligence (AI), and marketing technology. Investments will range between $5m and $50m. “From an investor’s perspective, an enterprise SaaS business is easily measurable and predictable”, Jack Young, Head of VC at DTCP, told Reuters. He expects digital transformation will accelerate as AI is increasingly deployed in software. There is a dual purpose to Group VC efforts: make profitable exits; and be closely involved in technology and innovation that might directly benefit DT’s digital operations. “The larger sized [second] fund will enable us to increase our involvement with top-tier deep-tech software companies in our investment scope”, said Vento.

Geographically, Fund II also brings a new twist to the DTCP story. “The new collaboration with SK Telecom will allow us to expand our geographic reach into Asia, said Vento. Expansion into Asia includes a new DTCP office in Seoul, South Korea, planned before the end of 2019. Prior to SKT’s arrival, DTCP positioned itself as a VC “bridge” linking Europe, Silicon Valley, and Israel.

For the rest of this article, including a list of Fund II‘s recent investments, subscribe to access the full July/August release of Deutsche Telekomwatch.

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