Deutsche Telekom

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Deutsche Telekom AG
Aktiengesellschaft
Traded asTemplate:FWB
IndustryTelecommunications
PredecessorDeutsche Bundespost
Founded1995; 25 years ago (1995)
(privatisation)
1996; 24 years ago (1996)
(flotation)
HeadquartersBonn, Germany
Area served
Worldwide
Key people
Timotheus Höttges
(CEO)
de (Ulrich Lehner)
(Chairman of the Supervisory board)
ProductsFixed-line
Mobile phone
Broadband
Digital television
Digital media
IT Services
Telecommunications
RevenueIncrease 80.5 billion (2019)[1]
Increase €9.16 billion (2018)[2]
Increase €3.9 billion (2019)[1]
Total assetsIncrease €170.6 billion (2019)[1]
Total equityIncrease €24.6 billion (2019)[1]
OwnerFree float (68.1%)[3]
Federal Republic of Germany (31.9%)
Number of employees
216,000 (2018)[2]
Subsidiaries
Websitewww.telekom.com www.telekom.de
Footnotes / references
[4]

Deutsche Telekom AG (German pronunciation: [ˌdɔʏtʃə ˈteːləkɔm ʔaːˌɡeː]; short form in writing only: DT; stylised as ·T···) is a German telecommunications company headquartered in Bonn and by revenue the largest telecommunications provider in Europe. Deutsche Telekom was formed in 1995, as the former state-owned monopoly Deutsche Bundespost was privatised. 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.[5] The company is a component of the EURO STOXX 50 stock market index.[6]

History[edit | edit source]

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.[7][8]

Deutsche Telekom was the monopoly Internet service provider (ISP) for the German Internet until its privatization in 1995, and the dominant ISP thereafter.[9] 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.[9]

On 6 December 2001, Deutsche Telekom became the first official partner of the 2006 FIFA World Cup.[10]

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.[11]

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.[12]

In April 2013, T-Mobile US and MetroPCS merged their operations in the United States.[13] 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.[14]

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.[15][16] BT Group announced agreement in February 2015 to acquire EE for £12.5 billion[17] and received regulatory approval from the Competition and Markets Authority on 15 January 2016.[18] The transaction was completed on 29 January 2016.[19]

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.[20]

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.[21]

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.

Finances[edit | edit source]

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.[22] Deutsche Telekom's shares traded at over €14 per share, and its market capitalization was valued at US$68.4 billion in November 2018.[23]

Year Revenue
in bn. €
Net income
in bn. €
Total assets
in bn. €
Employees
2013 60.132 930 118.148 230,000
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

Operations[edit | edit source]

Deutsche Telekom world locations

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 the mobile operators Telekom Albania, 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 solutionsTemplate:Buzzword inline to large carriers including T-Mobile.[24][25]

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.


Deutsche Telekom Global Carrier
Formerly called
Deutsche Telekom International Carrier Sales & Solutions
Division
IndustryTelecommunications Network Service Provider
HeadquartersGermany
Websitehttps://globalcarrier.telekom.com

Template:Infobox NSP

Deutsche Telekom Global Carrier[edit | edit source]

Deutsche Telekom Global Carrier[26] 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[edit | edit source]

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[edit | edit source]

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.[27][28]

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 bar Chinese vendor Huawei on security grounds.[29]

International subsidiaries[edit | edit source]

Places of operations, subsidiaries and affiliates
Country Subsidiaries & affiliates Stake held by Deutsche Telekom
Argentina T-Systems Argentina S.A. 100.00%
Austria Magenta Telekom Austria GmbH 100.00%
Software Daten Service Gesellschaft m.b.H. 100.00%
T-Systems Austria GesmbH 100.00%
Belgium T-Systems Belgium NV 100.00%
Bosnia and Herzegovina HT Mostar d.d. 40.00%
Brazil T-Systems do Brasil Ltda. 100.00%
Bulgaria Novatel EOOD 100.00%
Canada T-Systems Canada, Inc. 100.00%
China T-Systems P.R. China Ltd. 100.00%
Croatia Hrvatski Telekom d.d. 51.00%
Czech Republic T-Mobile Czech Republic, a.s. 100.00%
Denmark T-Systems Nordic TC A/S 100.00%
Finland TSI Finnland 100.00%
France T-Systems France SAS 100.00%
Germany Deutsche Telekom AG / Group Headquarters 100.00%
Telekom Deutschland GmbH 100.00%
T-Systems International GmbH 100.00%
Greece OTE (Hellenic Telecommunications Organization S.A.) 45.00%
Cosmote (Cosmote Mobile Telecommunications S.A.) 100.00% of shares held by OTE
T-Systems Information and Communication Technology E.P.E. 100.00%
Hungary Magyar Telekom Nyrt. 59.30%
IT Services Hungary Szolgáltató Kft. 100.00%
India T-Systems Information and Communication Technology India Private Limited 100.00%
Luxembourg T-Systems Luxembourg S.A. 100.00%
Malaysia T-Systems Malaysia Sdn. Bhd. 100.00%
Mexico T-Systems Mexico S.A. de C.V. 100.00%
Montenegro Crnogorski Telekom A.D. 76,53% of shares held by Hrvatski Telekom d.d.
Netherlands T-Mobile Netherlands B.V. 75.00%
T-Systems Nederland B.V. 100.00%
Tele2 Netherlands 100.00% of shares held by T-Mobile Netherlands B.V.
Ben Netherlands 100.00% of shares held by T-Mobile Netherlands B.V.
North Macedonia Makedonski Telekom AD 51,00% of shares held by Magyar Telekom
Poland T-Mobile Polska S.A. 100.00%
T-Systems Polska Sp.z o.o. 100.00%
Romania Combridge S.R.L. 100.00% of shares held by Magyar Telekom
Telekom Romania Communications S.A. 54.01% of shares held by OTE
Telekom Romania Mobile Communications S.A. 100.00% of shares held by Cosmote & OTE
T-Systems ICT Romania S.R.L. 100.00%
GTS Telecom S.R.L. 100.00%
Russia T-Systems CIS 100.00%
Singapore T-Systems Singapore Pte. Ltd. 100.00%
Slovakia Slovak Telekom, a.s. 100.00%
T-Systems Slovakia s.r.o. 100.00%
South Africa T-Systems South Africa (Pty) Limited 70.00%
Spain T-Systems ITC Iberia, S.A. 100.00%
Sweden T-Systems Nordic TC A/S 100.00%
Switzerland T-Systems Schweiz AG 100.00%
Turkey T-Systems Telekomünikasyon Limited Şirketi 100.00%
Ukraine Novatel Ukraine LLC. 100.00% of shares held by Magyar Telekom
United Kingdom Deutsche Telekom (UK) Ltd 100.00%
BT Group plc[30] 12.00%
T-Systems Limited 100.00%
United States T-Mobile US, Inc. 43.0%
T-Systems North America, Inc. 100.00%

[31]

See also[edit | edit source]

References[edit | edit source]

  1. 1.0 1.1 1.2 1.3 "Annual Report 2019". 
  2. 2.0 2.1 "Annual Report 2018" (PDF). 
  3. "The 2015 Financial Year". Deutsche Telekom. Archived from the original on 17 October 2016. Retrieved 22 August 2016.  Unknown parameter |url-status= ignored (help)
  4. "Archived copy". Archived from the original on 2011-09-04. Retrieved 2011-04-30.  Unknown parameter |url-status= ignored (help) Deutsche Telekom Organisational Structure
  5. AG, Deutsche Telekom. "Deutsche Telekom: Aktionärsstruktur". www.telekom.com (in German). Retrieved 2020-04-30. 
  6. Frankfurt Stock Exchange Archived November 19, 2015, at the Wayback Machine.
  7. Rüdiger, Ariane. "Die Geschichte der Deutschen Telekom (german)". PC Welt, Germany. Retrieved 16 December 2012. 
  8. Matthews, Christopher (2 February 2012). "The 11 Largest IPOs in U.S. History". Time Inc.. http://business.time.com/2012/02/02/the-11-largest-ipos-in-u-s-history/slide/deutsche-telekom/. Retrieved 16 December 2012. 
  9. 9.0 9.1 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. https://archive.org/details/internetentrepre0000waes. 
  10. "Deutsche Telekom becomes Official Partner of 2006 FIFA World Cup Germany™". fifa.com. 6 December 2001. Retrieved 30 September 2015. 
  11. "BBC News - T-Mobile and Orange in UK merger". Retrieved 30 November 2016. 
  12. "Home - BuyIn". Retrieved 30 November 2016. 
  13. "Deutsche Telekom to merge U.S. ops with MetroPCS". The Verge. Retrieved 26 July 2013. 
  14. Reuters (9 February 2014). "Deutsche Telekom buys remainder of T-Mobile Czech unit". Reuters. https://www.reuters.com/article/2014/02/09/us-deutschetelekom-purchase-idUSBREA180P620140209. 
  15. "BT in talks to buy mobile phone operator EE for £12.5bn". The Guardian. 16 December 2014. https://www.theguardian.com/business/2014/dec/15/bt-talks-mobile-phone-ee. Retrieved 16 December 2014. 
  16. Neville, Simon (5 February 2015). "BT returns to mobile phones with £12.5bn takeover of EE". The Independent (London). https://www.independent.co.uk/news/business/news/bt-returns-to-mobile-phones-with-125bn-takeover-of-ee-10024907.html. 
  17. "BT to buy mobile firm EE for £12.5bn". BBC. 5 February 2015. https://www.bbc.co.uk/news/business-31144009. Retrieved 5 February 2015. 
  18. "BT takeover of EE gets final Competition and Markets Authority clearance". BBC News. 15 January 2016. https://www.bbc.co.uk/news/business-35320831. Retrieved 29 January 2016. 
  19. "BT Group PLC Completion of the acquisition of EE Limited". 4-traders. 29 January 2016. http://www.4-traders.com/BT-GROUP-PLC-4003616/news/BT-Group-PLC-Completion-of-the-acquisition-of-EE-Limited-21767295/. Retrieved 29 January 2016. 
  20. "Facebook starts Telecom Infra Project with Intel, Nokia, Deutsche Telekom, EE, Equinix, Globe, HCL, others", by Jordan Novet, Venture Beat, February 21, 2016.
  21. "Airbus, Intelsat Join Tech Companies to Form HAPS Alliance". Avionics. 2020-02-27. Retrieved 2020-02-28. 
  22. "Deutsche Telekom Bilanz, Gewinn und Umsatz | Deutsche Telekom Geschäftsbericht | 555750". wallstreet-online.de. Retrieved 2018-11-05. 
  23. "DTE.DE Key Statistics | DT.TELEKOM AG NA Stock - Yahoo Finance". finance.yahoo.com. Retrieved 2018-11-05. 
  24. http://www.telekom-icss.com/factsandfigures
  25. "Archived copy". Archived from the original on 2016-10-02. Retrieved 2017-01-15.  Unknown parameter |url-status= ignored (help)
  26. "Deutsche Telekom Global Carrier". 
  27. https://finance.yahoo.com/news/lemonade-challenges-deutsche-telekom-magenta-130000416.html
  28. https://www.techdirt.com/articles/20191106/15021143340/color-magenta-how-t-mobile-thinks-it-owns-general-color.shtml
  29. Douglas Busvine (December 4, 2019), Exclusive: Deutsche Telekom freezes 5G deals pending Huawei ban decision Reuters.
  30. Farrell, Sean; Davies, Rob (2016-01-15). "BT's £12.5bn EE takeover gets green light". the Guardian. Retrieved 2018-08-03. 
  31. "Deutsche Telekom Global Presence". 

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