Tuesday, March 16, 2010

Deutsche Telekom Sets 2015 Growth Targets

Deutsche Telekom believes that mobile data traffic will provide the richest opportunities for revenue growth. Another ambition is to expand its footprint in the TV business in Europe and become the pay-TV market leader in Germany.

In a press conference in Bonn, the carrier confirmed its financial guidance for 2010 and laid out a longer term strategy to restructure its business and drive up revenue from growth areas through investments in intelligent networks and its portfolio of IT, Internet and network services.

Deutsche Telekom expects the revenue mix to have shifted markedly by 2015, with higher revenues being generated in the new growth areas. To pursue these opportunities, Deutsche Telekom plans to invest around EUR 10 billion between 2010 and 2012 in fiber optics, new mobile communications technologies, and IT processes. Investments are also considered for other European countries.

While continuing to defend its traditional access business in fixed and mobile in Germany, Deutsche Telekom will focus on the following five strategic growth areas:

  • Mobile Internet: mobile data traffic is expected to increase revenue from just under EUR 4 billion in 2009 to around EUR 6 billion in 2012 and approximately EUR 10 billion in 2015.

  • Deutsche Telekom plans to expand its own Internet offerings -- such as the Scout24 family, Musicload, Videoload, Softwareload and Gamesload -- and increase revenues from EUR 0.8 billion to between EUR 2 and 3 billion by 2015.

  • Connected home: consumers should enjoy universal, secure access to content and services across all screens. Revenues in this area -- including broadband access -- are expected to increase from EUR 5 billion to around EUR 7 billion in 2015.

  • T-Systems is planning to lift its external revenue by EUR 2 billion to around EUR 8 billion and believes that this will be achieved in particular with dynamic services and cloud computing.

  • Deutsche Telekom anticipates long-term revenue opportunities in intelligent network services for industries such as energy, healthcare, media and automotive.

  • Such services include third-party applications that will be facilitated by Deutsche Telekom's networks and services, such as medical care over smartphones or vehicle telemetry. Other applications are intelligent electricity meters for consumers that display up-to-the-minute consumption data at all times and allow prompt consumption management and energy feed-in. According to forecasts (Smart 2020), state-of-the-art ICT solutions will enable substantial reductions in CO emissions. Deutsche Telekom aims to generate total revenue of around EUR 1 billion in this area by 2015.

"The industry is changing and we are transforming Deutsche Telekom," said CEO René Obermann. "Two things are important: a high-margin core business and the courage to focus on promising growth areas. Nowadays, promising strategies must have more than one focus."http://www.telekom.de

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