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LIFE IS FOR SHARING.

Competition Hits Deutsche Teleko

Deutsche Telekom,
aGermantelecommunicationscompany .
formed as the formerstate ownedmonopolyDeutsche
Bundespostwas privatized
Deutsche Telekom was the monopoly ISP for theGerman
Internetuntil its privatization in 1995
German government still holds a 15% stake in company
stock directly, and another 17% through the government
bank KFW.

Four Pillars

Deutsche
Telekom
(Facts & Figures)
Customers :
> 151 m mobile customers
> 32 m fixed-line customers
> 17 m broadband customers
Markets:

Telekom in figures:
Revenue 62.7 bn
Among the Top100
companies (#89,
Fortune500 list)
Employees:

Presence in 50 countries
Employees
Germany, Europe, USA: with own
worldwide: 2,28,000
infrastructure
9,300 trainees

Strengths :
Established Business in Europe
Geographically Diverse Business
Technology
Brand Name
Steadily growing customer base

Weaknesses :
Lack of Emerging Market exposure
High Debt Burden

Where do you think DTs best


opportunities lie for future profitability?

IP TV Service
IP Telephony
Optical Fibre/VDSL
Communication
Services
Entertainment

IT Businesses with
platform based IT
products

Network Service
Connected Home
Machine to Machine
Communication
Partner for Business
Customers
Internet Partnerships

Challenges faced
Intense competition in its core fixedline business
Intense competition in the growing
wireless market
Massive debt

Is there anything Deutsche Telekom


can do to prevent further erosion of
its position?

Aggressive pricing in fixed-line


business
Strengthen position in the broadband
market and the growing demand for
its DSL products in terms of
improving the quality of customer
service.
Customer-oriented strategy, with
more competitive product offers and
services tailored to customers'
needs, backed by top network quality
and improved efficiency

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