Wednesday, February 25, 2009

Deutsche Telekom Plans Tighter Mobile/Wireline Integration

Deutsche Telekom intends to adopt more of a regional focus with greater emphasis on integration between its wireline and wireless operations.

"The distinction between our fixed-line and mobile operations will be abolished. We intend to bundle product development, IT and technology across Europe in future," stressed Deutsche Telekom CEO René Obermann. "We have already proved with integrated mobile and fixed-network sales in Germany that we are capable of increasing our market share by working more closely together." At the same time, René Obermann made clear that this was not a staff reduction program. Agreement had been reached with the employee representatives on the key points for implementation on a cooperative basis."

The concept for this new Deutsche Telekom was presented by René Obermann to the company's Supervisory Board and the Board of Management.

Some of the aspects of this transformation include:

  • The sales, marketing and customer service functions for German mobile and fixed-network business will be consolidated in one Board of Management department in future.

  • Products and innovation, IT and technology will be managed at a pan-European level, procurement globally. This function is to be bundled in the new Board of Management department for Operations (COO).

  • a Board department was created for South Eastern Europe. Guido Kerkhoff (41), previously Head of Group Accounting and Controlling, will immediately start setting up this new Board department as a member of the Board of Management.

  • Timotheus Höttges (46) has been appointed as the company's new CFO with effect from March 1.

  • Niek Jan van Damme (47) will take the lead at T-Home, Sales & Service, Mr. van Damme will take on responsibility for the sales, marketing and service activities of the fixed-network and mobile operations in Germany from mid-2009.

Deutsche Telekom said this new management structure is a continuation of a strategy that has proven successful to date. Deutsche Telekom has already had success with integrated mobile and fixed-network sales in Germany and Hungary. The coordination of product development, networks and IT systems has also been successfully implemented at T-Mobile International. In the future, other functions will also be managed on an integrated basis -- such as marketing, human resources and finance.

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