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German Telekom seeks path to growth


Telekom-Chef Obermann erklärt seine neue Strategie. Quelle: dpa

Deutsche Telekom CEO René Obermann said his new strategy. Source: Reuters

BONN. The German telecom moves its focus from traditional business phone lines and mobile phone contracts out to five growth areas – mobile Internet, the networked home, on-demand IT services for businesses, internet and intelligent networks – which will contribute to sales in 2015 nearly half . Today, their share is just under one quarter. This shift is designed to ensure that the group is growing again.

Has high hopes for Deutsche Telekom CEO René Obermann in the growth of the mobile Internet, so the web usage on mobile phones, and Internet offerings like music downloads. "We want to be the best partner of the Internet economy," Obermann said yesterday at the launch of its new strategy. To achieve this goal, smaller acquisitions are planned. The Group sources said that Deutsche Telekom is preparing the takeover of the online payment service, Click & Buy.

On ease of use of services, it is

Telekom executives had their march towards the new introduced several weeks ago. As reported by the Handelsblatt, were disappointed by some managers Obermanns program. They criticized it as visionless and conservative. Katja Ruud from the market research firm Gartner sees the featured plans rather than an evolution of what has been a new strategy. "The areas in which the telecoms want to grow the same, in which all want in," she says. "For there to be successful, it depends on how easily customers to use the services is done."

In fact, the telecom plowed most of the five areas of growth for many years. In the leading group says grudgingly, the efforts were not driven hard enough. "It was not necessary because we are also grown so," says one manager. Those days are over: For 2010, Obermann expects that the telecom shrinks.

From 2012 to the telecom grow again, "he said on Wednesday. By 2015, Obermann expected in the markets in which the telecom active, an annual growth of 2.5 percent. To meet the Group Obermann is vague and only says that he would grow at least as strong as the gross domestic product. Competitor France Telecom maintains its own forecast similarly vague.

For most telecom companies, the rapid growth phase is over. Reason, saturated markets and an ongoing price declines in landline and mobile. Only companies with subsidiaries in emerging countries are developing against the trend, such as Telefónica and its holdings in Latin America.

Dating in the U.S.?

Deutsche Telekom CEO René Obermann joined billionaire acquisitions in emerging markets again. It is not effective, as the tenth providers to enter into a growth market like India. What’s on too small a provider learns the telecom in the U.S.: There she is cut off in fourth place behind the U.S. giant, and wins new customers for months, barely. Experts reckon that Telekom is looking for its U.S. business for a partner. With him she could easily lift the upcoming investment in the next generation of mobile networks.

Even in Germany, high investment, too. In Dresden, the Deutsche Telekom is building by the end of 2010 in a pilot experiment speed fiber optic lines into the houses, in the jargon as FTTH. By 2012 it wants to wire up ten percent of households. This is an attempt to keep cable competitors at bay, whose lines reach into the living room of their customers and are very fast.

In internet services, Telekom plans to offer other companies in the settlement of small amounts over the telephone, as well as authentication and security programs. The company sources said that Obermann would this offer for a stake in sales of enterprise customers. Thus, Telekom would benefit from the success of content providers. So far, though booming Web companies like Google and Apple, Deutsche Telekom, however, only the networks available. The need to expand it for the ever-increasing traffic for a lot of money, but otherwise go without.

Obermann said that the margin of internet services can not possibly compete with the high returns of up to 40 percent, as used for example in mobile telephony in earnings before interest, taxes, depreciation and amortization (EBITDA). Therefore we must invest in this business but not billions. The bottom line is crucial that the return on investments climbed to eight percent. It currently stands at just over six percent.