DT will always explore options,says T-Mobile CEO (US)
T-Mobile USA’s CEO Philip Humm wrote to his staff recently about not ruling out the chances for a sale in the future.
He states in his letter that the parent company Deutsche Telekom (DT) will always explore options for maximizing the value of its portfolio and profits, without elaborating on what talks, if any are ongoing.
He confirmed in the letter that he has held talks with the CEO of Deutsche Telekom, Rene Obermann regarding the sale of towers, strategic partnerships and other financial options though, which largely support much of the recent rumors about a sale of the tower assets to raise funds. The company is thought to be in talks with WiMAX network, Clearwire over its radio spectrum.
T-Mobile rules out LTE launch, looking for Radio Spectrum Partners (USA)
T-Mobile USA has outlined plans to catch up with its larger rivals and is targeting revenue increase of US$3 billion by 2014 and cost savings of a further US$1 billion by 2013.
The company has however ruled out deploying an LTE network for several years, once devices are readily available and once device quality is on par with the HSPA+ network. In the meantime a key area the firm has identified is improving T-Mobile USA’s spectrum position. T-Mobile’s parent company, Deutsche Telekom is exploring various options to acquire additional spectrum and reduce the gap regarding economies of scale compared with its larger competitors, including partnering with other companies – which is bound to restart speculation about a deal with WiMAX network, Clearwire.
The company is also looking at MVNO and co-branding opportunities, which could include the above speculated deal with Clearwire.
According to Ren© Obermann, Group CEO, T-Mobile is ideally positioned to grow in the expanding U.S. market with the mobile internet, if possible to a disproportionately large extent. Philipp Humm and his team have a broad-based strategy to put T-Mobile USA back on course for growth.
According to Philipp Humm, CEO of T-Mobile USA, having America’s largest 4G network, which is evolving to even faster speeds this year, and offering a compelling line-up of 4G devices put us in a strong position to be successful. They will consistently implement our challenger strategy and profit more from market growth. They will offer our customers the best data plans, the best service and the best 4G-network.
Obermann and Humm also stressed the strength of the US unit, which is generally strong enough to fund itself and will do this with regard to future investments.
Deutsche Telekom confirmed its goal of doubling the transmission speeds to 42 Mbit/s capability. In addition, 4G expansion has already had a positive impact on churn development: the churn rate has declined significantly in areas where T-Mobile USA has already been offering 3G and 4G services for several quarters compared with regions where it only offers 2G services.
Deutsche Telekom Chief cleared of charges
Deutsche Telekom’s chief has been free from all the charges by prosecutors investigating a fraud at the telco’s Balkans subsidiaries.
According to reports, prosecutors dropped charges against Rene Obermann following a three month investigation into the DT chief’s involvement in an alleged US$40.09 million bribery scandal involving the telco’s businesses in Macedonia and Montenegro. The case was dropped due to a lack of evidence.
Deutsche Telekom had denied Obermann was involved in the 2005 fraud after prosecutors raided the CEO’s home in August, and showed its faith by renewing the chief’s contract for a further five years last month.
Obermann was one of eight people investigated by German prosecutors at the request of US investigators probing whether dividend payments to Makedonski Telekom (MakTel) amounted to a bribe to keep competitors at bay.
As per reports, the telco’s businesses in Montenegro and Macedonia are thought to have signed fake contracts worth US$42.76 million. Charges against two of the remaining suspects were also dropped.
Deutsche Telekom extends CEO Obermann’s contract until 2016?
The Supervisory Board of Deutsche Telekom has decided to extend Ren© Obermann’s contract as Chairman of the Board of Management of Deutsche Telekom by a further five years at its meeting today. His current contract expires on October 31, 2011. The new contract will run until the end of October 2016.
According to Prof. Ulrich Lehner, Chairman of the Supervisory Board of Deutsche Telekom, Ren© Obermann has done a first-class job over the last few years. He is the right man for the future of the company, because he combines an understanding of the market with determination and the will to strike a balance between different interests. As such, he will lead the Group to even greater success.
According to Ren© Obermann, he is grateful for this demonstration of confidence from the Supervisory Board and their recognition of my previous work. He will continue to fight for the future success of Deutsche Telekom with the support of my Board of Management colleagues and every employee. They will implement their new strategy consistently and use high-speed networks and innovative products to tap new growth areas for the Group, offsetting the decline in the tightly regulated areas. The next few years are all about pushing ahead with the transformation of Deutsche Telekom.
The contract is subject to the new regulations on Board of Management remuneration that were approved at the shareholders’ meeting in May 2010. The medium-term goals and the employee and customer-satisfaction parameters are anchored in these regulations, ensuring that the remuneration is not only tied to financial developments, but is also linked to a greater extent to sustainability KPIs and other indicators focused on the interests of key stakeholders.
Deutsche Telekom to discuss site closures with labor union
If reports are to be believed, the head of German Telecommunications Company Deutsche Telekom AG has agreed to talk with labor union Ver.di over a dispute concerning site closure which threatens to impede an extension of the chief executive’s contract, set to expire in 2011.
According to the report, Rene Obermann told workers’ councils that he will listen to reason on the topic of Telekom’s regional presence.
But as per reports citing German Ver.di head Lothar Schroeder, their protest will only end when there is a sustainable result.
As per reports, talks on the closure of 58 of Telekom’s 86 sites for its business clients’ division, made up of 3,600 employees, will begin in early December.
Deutsche Telekom spur as US businesses add users (Europe)
Deutsche Telekom AG has revealed its third Quarter results. The company recorded a 7.9% t increase in earnings as revenues from mobile data services climbed and the company made progress in cutting costs.
The company reported a net profit of nearly US$1.45 billion for the JulySeptember period compared to last year. Total revenue declined 4.1%. Telekom however claimed that its mobile data revenue rose 26% to US$4.49 billion.
According to Deutsche Telekom, it also has made progress in costcutting efforts, and is on course to exceed its original aim of saving US$2.80 billion this year. The company reaffirmed its fullyear earnings targets.
According to CEO, Rene Obermann, the company is delivering what it has promised. In terms of both finance and operations, the group’s development has completely fulfilled company’s expectations.
As per the company, its U.S. cell phone unit TMobile USA’s customer base grew by 137,000 in the course of the quarter to 33.8 million, following a decline in the previous threemonth period, thanks to a rise in pre-paid customers. The unit’s average data revenue per customer was up nearly a quarter as the number of smart phones on its U.S. network swelled.
For the year’s first nine months, net earnings rose to US$3.20 billion from 499.96 million. Revenue declined 3% to US$65.92 billion.
As per Deutsche Telekom, net profit was up nearly 22% in the third quarter at euro1.53 billion, while quarterly revenues edged up 1% to US21.90 billion. Adjusted pretax earnings declined due largely to higher customer acquisition costs in the United States and the Netherlands.
