Wednesday, November 18, 2009

Deutsche Telekom Seeks Merger of T-Home and T-Mobile in Germany

Deutsche Telekom has asked its shareholders to approve the merger of its T-Home and T-Mobile division in Germany into a single company in order to increase their competitiveness.

"Now is the right time to merge our mobile and fixed-network business. Two healthy, competitive business areas will become even stronger by joining forces," said Chairman of the Board of Management René Obermann. This is the Group's response to the challenges facing the industry. This will put Deutsche Telekom in a better position to offer integrated solutions and services for fixed network and mobile communications from a single source. The Group is also continuing to focus on efficient planning and the simplification of systems and wholesale products.

"On the one hand, customers with fixed-network and mobile contracts with Deutsche Telekom are considerably more loyal. On the other hand, just one in five of our 29 million customer households currently has a fixed-network and a mobile contract with Deutsche Telekom. If we were to persuade just one percent of the remaining customers to sign up for a second contract, our revenue could increase by up to EUR 100 million per year."

See also