Deutsche Telekom

Business in Russia

Deutsche Telekom has been represented in Russia for more than 14 years. Licenses for communication services were obtained in 2005. Deutsche Telekom has two communication nodes in Russia located in Moscow. The interests of all Deutsche Telekom divisions in Russia and the CIS are represented by T-Systems SiEs LLC, which was registered in 2002.

Performance indicators

2013

The net profit of the German telecommunications operator Deutsche Telekom in 2013 amounted to 930 million euros against a loss of 5.35 billion euros in 2012, according to the company. Earnings per share were €0.21 against a loss of €1.24 a year earlier. The company's revenue for the reporting year grew by 3.4%, amounting to 60.13 billion euros.

History

2023: Lufthansa names cause of IT glitch that delays hundreds of flights

The reason for the violations in the Lufthansa check-in and boarding system, which on February 15, 2023 led to mass cancellations of flights throughout Germany, is cable damage during work carried out by the Deutsche Telekom provider. Frankfurt Airport, where the accident occurred, is the airline's main hub. Read more here.

2021

Reduction of 3,000 jobs

On October 21, 2021, it became known that Deutsche Telekom is cutting about 3 thousand jobs in Germany. The telecom operator is taking these measures as part of a cost-cutting plan and as a result of expanding the fiber optic network and increasing its stake in T-Mobile US.

According to Telecomaper, under the leadership of CEO Tim Höttges, Deutsche Telekom regularly breaks records, the concern earns more than ever since its IPO in 1996, but along with the profit of unprecedented heights, debts reach. The company's net liabilities amount to almost €128 billion, which is more than eight times the operating profit expected in 2021 and this makes investors nervous. Among other things, Höttges wants to invest billions in increasing his stake in the US branch of T-Mobile, which should grow to more than 50% and this is superimposed on the existing high costs of expanding infrastructure.

Deutsche Telekom plans to cut 3,000 jobs

Therefore, the team around Tim Höttges takes all sorts of measures, such as a share exchange with Japanese partner Softbank, organized by a board member from USA Torsten Langheim and the sale of the Dutch mobile unit were just the beginning in this direction. Höttges himself again uses the sale of mobile towers, which are expensive to value in the capital market. According to insiders, preparations are underway for a savings program. The money is needed to expand the fibre network, so a new programme called, save for fibre, is due to be completed by December 2021.

In Germany, lower office rents and reduced manufacturing processes will help save money, but jobs will be cut first. According to the group, this is about 3 thousand full-time positions in higher-level divisions, such as controlling, including many managers.^[1]

Sale of T-Mobile Netherlands for €5.1 billion

In early September 2021, Tele2 and Deutsche Telekom agreed to sell T-Mobile Netherlands to Apax Partners and Warburg Pincus. The transaction value was €5.1 billion. Read more here.

2020: Disclosure to the authorities of data on the movement of subscribers to contain the outbreak of coronavirus

At the end of March 2020, Vodafone,, and Deutsche Telekom Orange five other telecommunication providers agreed to exchange data on the movement of subscribers with. European Commission It is assumed that this data will help the authorities contain the spread. coronavirus More. here

2019

Agreement with Konica Minolta to jointly develop and distribute innovative solutions

On October 21, 2019, Konica Minolta announced that it had signed a memorandum of intent with Deutsche Telekom to jointly develop and distribute innovative solutions. The collaboration started with a project to integrate AIRe Lens smart glasses for service and production with Deutsche Telekom mobile services. Read more here.

Cooperation with Software AG in the field of IoT

July 23, 2019 Software AG announced the signing of an agreement with Deutsche Telekom to provide services in the field Internet of things (English Internet of things, or) IoT at the global level. Deutsche Telekom and its T-Systems corporate customer division will improve their solution with Cloud of Things a platform Cumulocity IoT developed by Software AG specialists. More. here

2018: In the top ten most expensive German brands

In January 2018, the company entered the top ten most expensive German brands, according to a rating compiled by advertising and communication holding WPP and marketing agency Kantar Millward Brown. Read more here.

2011: Sale to T-Mobile USA

In March 2011, AT&T announced the signing of a final agreement to purchase the operator T-Mobile USA, owned by the German concern Deutsche Telekom. The amount of the transaction, which has already received the approval of the boards of directors of both parties, will be $25 billion in cash and $14 billion in shares of^[2].

A subsidiary of T-Mobile USA was acquired by Deutsche Telekom in 2001 for $35 billion (then called VoiceStream Wireless) in the expectation that over time Deutsche Telekom will be able to take a fairly strong position in the mobile market. Years later dollars , however, with billions in investment, the company still remained in the shadow of the market's larger players. According to unofficial information, in 2010 Deutsche Telekom also negotiated the merger of T-Mobile USA with Sprint Nextel.

At the time of the transaction, the staff of T-Mobile USA is about 38 thousand. Deutsche Telekom representatives will sit on AT&T's board.

2012: €30 billion for IT and Telecommunications

Until 2015, the Deutsche Telekom group of companies, which includes T-Systems, invests 30 billion euros in the future of ICT solutions. Deutsche Telekom has been planning revenue growth since 2014, pushing free cash flow to about €6 billion by 2015. In the closer term, free cash is expected to amount to about 5 billion euros, adjusted EBITDA - about 18.4 billion euros. The planned amount of dividends for 2013 and 2014 is 0.5 euros per share.

The need for broadband channels continues to grow at an equally high rate for both mobile and fixed networks. Aware of this, Deutsche Telekom will be increasing its investment in broadband networks and products over the next three years to improve its market position in the long term. Capital investments of the group of companies should grow by about 9-10 billion euros and eventually amount to almost 30 billion euros.

End-to-end products, entertainment and cloud solutions are expected to drive revenue growth in the areas of mobile Internet access and smart home solutions. Due to this, EBITDA margin should be about 40%. Deutsche Telekom plans to enter the first position in terms of revenue from the provision of mobile services with a market share of 35%. The company also aims to take a leading position in Europe in terms of the number of broadband communication lines with a market share of 43%.

"If we wait now, then after that we will have to catch up with others. We are investing in the future - with determination and a clear strategy, "says René Obermann, chairman of the board of directors of Deutsche Telekom. "The investment plans we presented today will form the basis for future growth."

The DT Group intends to hold its A-/BBB rating and guaranteed unlimited access to the capital market. A two-year dividend plan for 2013-2014 was adopted, and in 2015, at the end of the increased investment period, the shareholder remuneration policy will be revised. It is planned to give shareholders the opportunity to choose the form of dividends - real or monetary. Thus, investors will be able to leave funds in the company to further improve financial performance and increase the return on investment in the long term.

2014: Creation of an investment fund with a capital of 500 million euros

In November 2014, Deutsche Telekom announced the creation of an investment fund with a capital of 500 million euros. The new company, called Deutsche Telekom Capital Partners (DTCP), will finance promising startups and innovative projects.

Notes