Please activate JavaScript!
Please install Adobe Flash Player, click here for download

Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2011

10 Group strategy and Group management. Group strategy. Fix – Transform – Innovate. New strategy successfully implemented since March 2010. Telecommunications is an industry that sees permanent, dynamic change and is influenced by global trends. All relevant areas are affected: the fixed network, mobile communications, and the Internet. Infrastructure is and will remain the basis of our business. We expect the gigabit society to need faster and faster networks. Two factors are of crucial impor- tance here, if we are to be efficient and successful: next-generation networks and standardized IT. Telecommunications providers will also have to focus increasingly on realizing growth potential. In our opinion, the mobile Internet and Internet services, for example, provide a wealth of growth opportunities. What do customers expect? Secure and universal access to all services – from all devices. In our view, cloud computing and dynamic computing provide considerable growth potential for business customers. Furthermore, intelligent networks will in future support the upcoming changes in industries such as energy, healthcare, media, and transportation/automotive. We still firmly be- lieve on the whole that a strong national competitive position is vital for a profitable business. After successfully implementing our preceding strategy called “Focus, fix and grow” between2007and2009,wehavebeendevelopingourstrategicapproach further with the new Fix – Transform – Innovate strategy we presented in March 2010. We are focusing specifically on the challenges and opportunities in the market, which will safeguard our successful position in the long term. Our vision is still to become an international market leader for connected life and work. This is why we will systematically restructure our business model in the coming years – with investments in intelligent networks, with IT services and with Inter- net and network services. The aim of this strategic approach is to expand our activities across the entire value chain and position ourselves as an open part- ner for consumers and business customers as well as for the Internet sector. We have defined five new strategic action areas: −− Improve the performance of mobile-centric assets. −− Leverage One Company in integrated assets. −− Build networks and processes for the gigabit society. −− Connected life across all screens. −− Connected work with unique ICT solutions. We are systematically implementing the new strategy within these action areas and have achieved initial successes in all areas. Improve the performance of mobile-centric assets. In all countries in which our operations primarily provide mobile communica- tions services, we are planning to enhance our performance and specifically invest in next-generation technologies, develop innovative services, and ex- pand our portfolio of mobile devices. In the United Kingdom, for instance, our new joint venture Everything Every- where got off to a good start as the market leader, measured in terms of the combined customer base. In Poland, we have definitive clarification of the ownership of our subsidiary PTC. The agreed sale of T-Mobile USA to AT&T represents achievement of a central goal of our strategy. This transaction will free up resources, which will allows us to strengthen our focus on the transformation in Europe, and will also impact positively on the development in the other mobile-centric markets. Leverage One Company in integrated assets. We are continuing to integrate fixed-network and mobile communications – an approach we had taken under the One Company project – as planned and again in line with the new strategy. On the back of the successfully completed integrationinGermanyandseveralEuropeanmarkets(e.g.,CroatiaandSlovakia), we can generate additional revenues, further improve our customer service and leverage synergies. We have also reorganized our activities in Europe with good results: EBITDA margins in the integrated markets are still at a high level despite the challenging economic situation in some countries. New innovative services and calling plans have allowed us to set ourselves apart from our competitors more clearly. Media Center, for example, already gives our customers 24/7 access to their music, photos, and other media content, whether on their PCs, TVs, or smartphones. LIGA total!, Deutsche Telekom’s soccer league service in Germany, can likewise be watched on various screens at home or on the move.