Deutsche Telekom is the biggest of Europe's "Big Four" telecoms providers, ahead of Telefonica, Vodafone and Orange. The company dominates the fixed line and broadband sector in its home market of Germany, while aggressive expansion of its wireless subsidiary T-Mobile through acquisition has given the group a commanding position in Central and Eastern Europe as well as a strong presence in the US. However that shopping spree also created a huge mountain of debt. Telekom's share price tumbled in 2002, causing an outcry from ordinary investors as well as the German government, still its controlling shareholder. That led to the departure of the group's executive chairman. His successor attempted to streamline the group to consolidate its worldwide interests and reduce debt, but performance remained disappointing. He too was forced to resign in late 2006. After several years of wrestling with overall performance, the group took the decision to reduce its mobile presence in the UK by joining forces with Orange, and later underwriting the sale of that EE JV to BT, in which it is now a significant minority shareholder. Meanwhile, its US subsidiary has grown to become one of that country's big three national mobile providers, following an agreement to acquire rival Sprint in 2020. That deal pushed up annual revenues by 25% in 2020 to €101.0bn, with net profit of €4.2bn. Both were best-ever results. of which the US contributed a little over half and Germany around 25%. Net profit was €3.9bn. By the end of that year, Telekom served some 242m mobile customers worldwide. It has a little over 27m fixed line connections and 22m broadband customers. The US accounts for more than 60% of sales, and Germany for another 25%. Domestic fixed line and wireless operations now operate under a unified Telekom banner, and the group also owns several smaller challenger brands including pre-paid Congstar. Though it is clear leader in fixed line with 17.6m fixed and 14.1m broadband customers, competition in mobile is intense, with all three main operators on around a third of the market. Telekom was slightly behind rivals Vodafone and O2. The group serves another 46m mobile customers across ten countries in Central & Eastern Europe, mostly under the T-Mobile banner. The biggest is Greece, where Telekom has a controlling minority stake in the leading local telecoms supplier, which operates under the OTE and Cosmote brands. Other important European markets include Hungary, Poland and Austria. Timotheus Hoettges is CEO of Deutsche Telekom.
Capsule checked 11th January 2022
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Historical profile information for Deutsche Telekom
Adbrands Daily Update 8th Sep 2021: Deutsche Telekom is to increase its shareholding in T-Mobile USA through a share swap with Japanese investment group Softbank, the former owner of Sprint. Under the new arrangment, Softbank agreed to sell a chunk of its T-Mobile shares to the German group in exchange for new shares in Deutsche Telekom itself and $2.4bn in cash. Telekom will end up with 48% of T-Mobile USA (up from 43%), while Softbank becomes the largest shareholder after the German government in Deutsche Telekom. The two companies also established a strategic partnership to encourage other SoftBank investment companies to take advantage of Deutsche Telekom's customer base in the US and Europe. Telekom is raising the cash portion of the transaction with a deal to sell its market-leading T-Mobile business in the Netherlands to private equity investors Apax and Warburg Pincus for €5.1bn.
Adbrands Daily Update 5th Nov 2020: "Unique Together". There's just so much going on in the world at the moment, you'd be forgiven if it slipped your mind that next Monday marks the anniversary of the collapse of the Berlin Wall. Germans, though, will be celebrating that date, even in the midst of "lockdown light". DDB Hamburg has released a fine and very moving new film for Deutsche Telekom in honour of reunification, and to promote the new iPhone. Better still, it's based on a true story, as told by Stefanie Wally in her book 'Akte Luftballon' (or 'Balloon Files'). In 1977, when she was six, she released a balloon over the wall from West Germany with a letter attached inviting a response from a pen pal. (In truth, the balloon was yellow, not Telekom's house colour of magenta). A few days later she received an answer from Anke Behrendt, a little girl of the same age in the East, and so began a friendship that has lasted 43 years.
Adbrands Daily Update 9th Jan 2020: Hans-Christian Schwingen is stepping down after 12 years as brand and marketing chief at Deutsche Telekom. It's not yet known what his future plans are. However, his successor has already been confirmed as Ulrich Klenke, former CEO of Ogilvy Germany and head of marketing at Deutsche Bahn.
Adbrands Social Media 28th Feb 2019: "Dabei: Be There". It took not one but two agencies to deliver the new domestic branding campaign for German telecoms giant Deutsche Telekom - ultimate owners, as our US readers probably already realise, of the T-Mobile brand. House agencies DDB and Serviceplan worked together on the campaign to ensure that it's really not one you could possibly overlook. 'Dabei' literally means "there", but in the sense of "Be There" - or as this campaign entreats - "Let's All Be There Together". In a world where most telecoms companies tend to go for greater subtlety, this In Your Face approach certainly makes you sit up and pay attention.
Adbrands Weekly Update 16th Nov 2017: As had previously been anticipated, Deutsche Telekom's massive pan-European media budget moves from long-time incumbent Mediacom. A significant part of the business transfers to sister agency Mindshare, but with less responsibility than was previously enjoyed by Mediacom. According to Telekom's VP, marketing communications Christian Hahn, "The media business has changed completely. We want to be masters of this development and steer the media strategy much more independently. We can not completely delegate that to an agency." As a result, Mindshare has been confirmed only as the agency for traditional planning and buying. Media strategy will now be handled inhouse at Telekom. Three other contracts - for programmatic buying, media analytics and search marketing - are also up for grabs but the results will not be announced until early next year.
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