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Deutsche Telekom

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Deutsche Telekom AG
Company typePublic (Aktiengesellschaft)
FWB: DTE
DAX Component
IndustryTelecommunications
PredecessorDeutsche Bundespost
Founded2 January 1995; 29 years ago (1995-01-02)
HeadquartersBonn, Germany
Area served
Worldwide
Key people
Timotheus Höttges
(CEO)
Ulrich Lehner
(Chairman of the Supervisory board)
ProductsFixed-line
Mobile phone
Broadband
Digital television
Digital media
IT Services
Telecommunications
RevenueIncrease €101 billion (2020)[1]
Increase €12.8 billion (2020)[1]
Increase €4.2 billion (2020)[1]
Total assetsIncrease €264.9 billion (2020)[1]
Total equityIncrease €72.6 billion (2020)[1]
OwnerFree float (68.1%)[2]
Federal Republic of Germany (31.9%)
Number of employees
226,291 (2020)[1]
Subsidiaries
Websitewww.telekom.com
Footnotes / references
[3]
Previous logo (2013–2022)

Deutsche Telekom AG (German pronunciation: [ˌdɔʏtʃə ˈteːləkɔm ʔaːˌɡeː] ⓘ; short form often just Telekom, DTAG or DT; stylised as ·T·) is a German telecommunications company that is headquartered in Bonn and is the largest telecommunications provider in Europe by revenue. Deutsche Telekom was formed in 1995 when Deutsche Bundespost (at that time a monopoly under state ownership) was privatized. Since then, Deutsche Telekom has featured among Fortune 500 companies, with its latest ranking at number 62 (in 2022). The company operates several subsidiaries worldwide, including the mobile communications brand T-Mobile.

As of April 2020, the German government holds a 14.5% stake in company stock directly, and another 17.4% through the government bank KfW.[4] The company is a component of the EURO STOXX 50 stock market index.[5]

History

The Deutsche Bundespost was the federal German government postal administration created in 1947 as a successor to the Reichspost. It was also the major telephone company in West Germany.

On 1 July 1989, as part of a post office reform, Deutsche Bundespost was split into three entities, one being Deutsche Telekom. On 1 January 1995, as part of another reform, Deutsche Bundespost Telekom became Deutsche Telekom AG, and was privatized in 1996. As such, it shares a common heritage with the other privatized Deutsche Bundespost companies, Deutsche Post (DHL) and Deutsche Postbank.[6][7]

Deutsche Telekom was the monopoly Internet service provider (ISP) for Germany until its privatization in 1995, and the dominant ISP thereafter.[8] Until the early 21st century, Deutsche Telekom controlled almost all Internet access by individuals and small businesses in Germany, as they were one of the first German telecom units.[8]

On 6 December 2001, Deutsche Telekom became the first official partner of the 2006 FIFA World Cup.[9]

On 1 January 2005, Deutsche Telekom implemented a new company structure. The two organizational business units of T-Com and T-Online were merged into the Broadband/Fixed Network (BBFN) strategic business unit (T-Online merged with parent Deutsche Telekom in 2006). It provides around 40 million narrowband lines, over 9 million broadband lines, and has 14 million registered Internet customers.

In 2008, the structure was changed again. T-Online was separated from Deutsche Telekom and merged with T-Com to form the new unit T-Home. In September 2010, Orange parent France Télécom and T-Mobile parent Deutsche Telekom merged their operations in the United Kingdom to create the largest mobile network in Britain, EE.[10]

In April 2010, T-Mobile was merged with T-Home to form Telekom Deutschland GmbH. This unit now handles all products and services aimed at private customers. In October 2012, Deutsche Telekom and Orange created a 50-50% joint venture named BuyIn for regrouping their procurement operations and benefiting from economies of scale.[11]

In April 2013, T-Mobile US and MetroPCS merged their operations in the United States.[12] In February 2014, Deutsche Telekom acquired the remaining parts of its T-Mobile Czech Republic division for around €800 million. The size of the remaining stake was numbered at 40 percent.[13]

In December 2014, it was announced that Deutsche Telekom were in talks with BT Group on the acquisition of EE, and part of the deal was to provide Deutsche Telekom a 12% stake and a seat on the board in the BT Group upon completion.[14][15] BT Group announced agreement in February 2015 to acquire EE for £12.5 billion[16] and received regulatory approval from the Competition and Markets Authority on 15 January 2016.[17] The transaction was completed on 29 January 2016.[18]

In September 2015, Deutsche Telekom launched the "Puls tablet", a Tablet computer with Android version 5.[19][20]

In February 2016, at the Mobile World Congress, in Barcelona, Deutsche Telekom jointly launched the Telecom Infra Project (TIP) with Intel, Nokia, Facebook, Equinix, SK Telecom, and others, which builds on the Open Compute Project model to accelerate innovation in the telecom industry.[21]

In February 2020, Deutsche Telekom joined a new partnership called HAPS Alliance to promote the use of high altitude vehicles in the Earth's stratosphere with the goal of eliminating the digital divide.[22]

On April 1, 2020, Sprint completed the merger with T-Mobile US, making T-Mobile US the owner of Sprint and becoming its subsidiary until the Sprint brand is phased out. The merger also led to SoftBank Group, the then-owner of Sprint to hold up to 24% of New T-Mobile's shares while Deutsche Telekom holds up to 43% of its shares. The remaining 33% is since held by public shareholders.

In September 2021, Deutsche Telekom sold T-Mobile Netherlands for €5.1 billion to the investment companies Apax Partners and Warburg Pincus.[23]

Finances

For the fiscal year 2017, Deutsche Telekom reported earnings of €3.5 billion, with an annual revenue of €74.9 billion, an increase of 2.5% over the previous fiscal cycle.[24] Deutsche Telekom's shares traded at over €14 per share, and its market capitalization was valued at US$68.4 billion in November 2018.[25]

Year Revenue
in bn. € 		Net income
in bn. € 		Total assets
in bn. € 		Employees
2011 58.653 0.557 122.542 240,369
2012 58.169 -5.255 107.942 232,342
2013 60.132 0.930 118.148 230,000
2014 62.658 2.924 129.360 228,248
2015 69.228 3.254 143.920 266,232
2016 73.095 2.675 148.485 221,000
2017 74.947 3.461 141.334 216,000
2018 75.656 2.166 145.375 216,369
2019 80.531 3.867 170.672 212,846
2020 100.999 4.158 264.917 226,291

Operations

Deutsche Telekom also holds substantial shares in other telecom companies, including Central European subsidiaries Slovak Telekom (Slovakia), Magyar Telekom (Hungary). Furthermore, Magyar Telekom holds majority shares in Makedonski Telekom (North Macedonia), and Hrvatski Telekom (Croatia) holds majority shares in Crnogorski Telekom (Montenegro).

DT also holds shares in the Hellenic telecommunication operator OTE, which also have shares in several other companies like Telekom Romania and the IT&C retailer Germanos. Deutsche Telekom also operates a wholesale division named International Carrier Sales & Solutions (ICSS) that provides white label voice and data solutions[buzzword] to large carriers including T-Mobile.[26][27] OTE also used to have shares in One Telecommunications operating in Albania. Prior to its sale it was known as Telekom Albania using DT's logo and marketing strategies.

Operation of telephone companies involves billing-software or "BSS". Deutsche Telekom's T-Mobile billing was performed on Israeli-backend systems until 2014, when Ericsson was selected to replace the Israeli backend.

Subsidiaries and affiliates[28]
Country Company Stake held by Deutsche Telekom
Austria Magenta Telekom 100%
Bosnia and Herzegovina HT Eronet (JP Hrvatske telekomunikacije d.d. Mostar) 39.1% of shares held by Hrvatski Telekom
Croatia Hrvatski Telekom d.d. 52.2%
Czech Republic T-Mobile Czech Republic, a.s. 100%
Germany Telekom Deutschland GmbH 100%
Greece OTE (Hellenic Telecommunications Organization S.A.) 49.22%
Cosmote (Cosmote Mobile Telecommunications S.A.) 100.00% of shares held by OTE
Hungary Magyar Telekom Nyrt. 59.21%
Montenegro Crnogorski Telekom A.D. 76,53% of shares held by Hrvatski Telekom
North Macedonia Makedonski Telekom AD 51% of shares held by Magyar Telekom
Poland T-Mobile Polska S.A. 100%
Romania Telekom Romania Mobile Communications S.A. 100% of shares held by OTE
Slovakia Slovak Telekom, a.s. 100%
United States T-Mobile US, Inc. 48.4%

T-Systems

Main article: T-Systems
Deutsche Telekom world locations

T-Systems sells worldwide products and services to medium to very large business customers. The focus is on the marketing of complex services and industry solutions.

Deutsche Telekom Global Carrier

ASN
Traffic Levels10+ Terabit/s

Deutsche Telekom Global Carrier[29] is formerly known as Deutsche Telekom International Sales and Solutions. It is an international wholesale arm of Deutsche Telekom. The products include Voice Termination, Ethernet, IP-Transit, Mobile and Roaming as well as In-flight Internet Access for the aviation industry. It operates a Tier-1 network.

European Aviation Network

Main article: European Aviation Network

Together with Inmarsat and Nokia, Deutsche Telekom develops a hybrid network for faster internet access on board the planes in Europe. It is a combination of data transmission via Inmarsat Satellite and Deutsche Telekom's LTE ground stations throughout the European continent.

Controversy

In November 2019, Deutsche Telekom was part of a controversy when word came out it had sued Lemonade Insurance, a New York-based company, for their use of the color magenta. Deutsche Telekom argued that the use of the color magenta by Lemonade Insurance (and similar looking variations of the color) violated one of their trademarks. The lawsuit was reported by multiple online sources and eventually picked up on social media. Lemonade Insurance started an online campaign called #freethepink to gain support for using the color magenta.[30][31]

Amid concerns over Chinese involvement in 5G wireless networks in Europe, Deutsche Telekom temporarily put all deals to buy 5G network equipment on hold in 2019, as it awaited the resolution of a debate in Germany over whether to ban Chinese vendor Huawei on security grounds.[32]

See also

References

  1. ^ a b c d e f "Annual Report 2020" (PDF). Deutsche Telekom AG.
  2. ^ "The 2015 Financial Year". Deutsche Telekom. Archived from the original on 17 October 2016. Retrieved 22 August 2016.
  3. ^ "Archived copy". Archived from the original on 2011-09-04. Retrieved 2011-04-30.{{cite web}}: CS1 maint: archived copy as title (link) Deutsche Telekom Organisational Structure
  4. ^ AG, Deutsche Telekom. "Deutsche Telekom: Aktionärsstruktur". www.telekom.com (in German). Retrieved 2020-04-30.
  5. ^ Frankfurt Stock Exchange Archived November 19, 2015, at the Wayback Machine
  6. ^ Rüdiger, Ariane (16 March 2012). "Die Geschichte der Deutschen Telekom (german)". PC Welt, Germany. Retrieved 16 December 2012.
  7. ^ Matthews, Christopher (2 February 2012). "The 11 Largest IPOs in U.S. History". Time Inc. Retrieved 16 December 2012.
  8. ^ a b Waesche, Niko Marcel (2003). Internet Entrepreneurship in Europe: Venture Failure and the Timing of Telecommunications Reform. Edward Elgar Publishing. pp. 162–164. ISBN 978-1-84376-135-8.
  9. ^ "Deutsche Telekom becomes Official Partner of 2006 FIFA World Cup Germany™". fifa.com. 6 December 2001. Archived from the original on October 1, 2015. Retrieved 30 September 2015.
  10. ^ "BBC News - T-Mobile and Orange in UK merger". 8 September 2009. Retrieved 30 November 2016.
  11. ^ "Home - BuyIn". Retrieved 30 November 2016.
  12. ^ "Deutsche Telekom to merge U.S. ops with MetroPCS". The Verge. May 2013. Retrieved 26 July 2013.
  13. ^ "Deutsche Telekom buys remainder of T-Mobile Czech unit". Reuters. Reuters. 9 February 2014.
  14. ^ "BT in talks to buy mobile phone operator EE for £12.5bn". The Guardian. 16 December 2014. Retrieved 16 December 2014.
  15. ^ Neville, Simon (5 February 2015). "BT returns to mobile phones with £12.5bn takeover of EE". The Independent. London.
  16. ^ "BT to buy mobile firm EE for £12.5bn". bbc.co.uk. BBC. 5 February 2015. Retrieved 5 February 2015.
  17. ^ "BT takeover of EE gets final Competition and Markets Authority clearance". BBC News. 15 January 2016. Retrieved 29 January 2016.
  18. ^ "BT Group PLC Completion of the acquisition of EE Limited". 4-traders. 29 January 2016. Retrieved 29 January 2016.
  19. ^ Cockpit for the world of Deutsche Telekom products at home: all applications at a glance with the Puls tablet PC (2015-09-04)
  20. ^ The Android Puls Tablet – Deutsche Telekom – Mediaan
  21. ^ "Facebook starts Telecom Infra Project with Intel, Nokia, Deutsche Telekom, EE, Equinix, Globe, HCL, others", by Jordan Novet, Venture Beat, February 21, 2016.
  22. ^ "Airbus, Intelsat Join Tech Companies to Form HAPS Alliance". Avionics. 2020-02-27. Retrieved 2020-02-28.
  23. ^ "T-Mobile Netherlands sells for over €5 billion". telecoms.com. 7 September 2021.
  24. ^ "Deutsche Telekom Bilanz, Gewinn und Umsatz | Deutsche Telekom Geschäftsbericht | 555750". wallstreet-online.de. Retrieved 2018-11-05.
  25. ^ "DTE.DE Key Statistics | DT.TELEKOM AG NA Stock - Yahoo Finance". finance.yahoo.com. Retrieved 2018-11-05.
  26. ^ "Profile - Deutsche Telekom Global Carrier".
  27. ^ "Deutsche Telekom ICSS with Big Win at the Global Carrier Awards 2015". Archived from the original on 2016-10-02. Retrieved 2017-01-15.
  28. ^ "Deutsche Telekom Global Presence".
  29. ^ "Deutsche Telekom Global Carrier".
  30. ^ "Lemonade Challenges Deutsche Telekom's 'Magenta' Trademark in the Name of Pink Lovers Everywhere". Archived from the original on 2020-07-29. Retrieved 2019-12-03.
  31. ^ "The Color Magenta, or How T-Mobile Thinks It Owns a General Color".
  32. ^ Douglas Busvine (December 4, 2019), Exclusive: Deutsche Telekom freezes 5G deals pending Huawei ban decision Reuters.
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