LIFE IS FOR SHARING.

(Competition Hits Deutsche Telekom)

Deutsche Telekom, a German telecommunications company .

formed as the former state owned monopoly Deutsche Bundespost was privatized

Deutsche Telekom was the monopoly ISP for the German Internet until its privatization in 1995

German government still holds a 15% stake in company stock directly, and another 17% through the government bank KFW.

In 2008, T-Online merged with T-Com to form the new unit T-Home.

Four Pillars

Deutsche Telekom (Facts & Figures)

Customers :

> 151 m mobile customers > 32 m fixed-line customers > 17 m broadband customers

Markets:

Presence in 50 countries Germany, Europe, USA: with own

infrastructure

Telekom in figures:

Revenue 62.7 bn € Among the Top100 companies (#89, Fortune500 list)

Employees:

Employees worldwide: 2,28,000

9,300 trainees

Strengths :

Established Business in EuropeGeographically Diverse BusinessTechnologyBrand Name Steadily growing customer base

Weaknesses :

Lack of Emerging Market exposure

High Debt Burden

Where do you think DT’s 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 fixed-line 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