Saturday, November 11, 2006

Kai-Uwe Ricke resigns as Deutsche Telekom CEO

Kai-Uwe Ricke resigned his position as CEO of Deutsche Telekom with immediate effect following a meeting with the company's Supervisory Board. A meeting of the Board to discuss his successor is expected on Monday.

Kai-Uwe Ricke took over as Deutsche Telekom's CEO on November 15, 2002. During his term there was not only the clear reduction of debt, but also for example the internationalization both in Eastern Europe and the USA, the T-Online merger as well as the development of the German broadband market.
  • Last week, Deutsche Telekom reported its quarterly results, citing a fast consumer uptake for bundled services following the introduction of new rates in its home market. Howerver, Broadband/Fixed Network revenue in Germany declined 5.9 percent year-on-year to EUR 16.4 billion in the first nine months of 2006. This drop was attributed to lower call revenues and line losses, as well as to a decline in revenues from interconnection services and lower prices for Internet access. Competition remains fierce in broadband and mobile services, with T-Com managing to capture around 19% of the wholesale DSL lines activated by the company in Q3. Meanwhile, T-Mobile Deutschland had 236,000 net additions in Q3, but revenue in the third quarter was down 4.1 percent year-on-year at EUR 2.1 billion.