"Leading European telecommunications provider"
Deutsche Telekom has launched a new corporate strategy to become the leading European telecommunications provider. CEO Timotheus Höttges laid out the strategic vision: "We are a trusted companion in an increasingly complex digital world – at home and at work, anyplace, anytime. Making life easier for people and enriching it for the long term is the very essence of what we do.
The rationale: customers choose telecommunications providers with high-performance networks, particularly in light of the rapid growth in data volumes. A strong network is also the decisive factor for online service providers looking for a high-quality technical platform for their products that allows them to set up their own services quickly and easily. As a result, integrated telecommunications providers are generally in a better position than fixed-only or mobile-only providers.
Deutsche Telekom's leadership goal covers four dimensions:
- The best network
- The best service
- The best products
- The preferred provider for business customers
Four areas of operation are derived from this leadership goal:
1. Integrated IP networks
Deutsche Telekom wants to offer its customers the best network and the fastest connections at all times, without them having to worry about the technology. The goal is to provide seamless access, regardless of whether our customers are using smartphones, laptops, tablets or other devices.
The Group is systematically working on simplification by switching the fixed-network infrastructure to all-IP technology. The migration is to be completed at all of the Group's European subsidiaries by the end of 2018. The LTE mobile communications standard is also being launched in all footprint markets. By the end of 2017 Deutsche Telekom plans to be able to offer its customers in Europe LTE network coverage of at least 50 percent; in Germany, the LTE network is being expanded to provide transmission speeds of up to 150 Mbit/s with a network coverage of up to 85 percent as part of the integrated network strategy. LTE advanced is to offer speeds of up to 300 Mbit/s in future.
The transformation to a fully IP-based network is to be completed by 2018 in Germany and Europe.
2. Best customer experience
Deutsche Telekom also wants to be a leader in terms of customer perception, with service and network quality, and with reliable, easy-to-use products and services. Telekom is pushing integrated offers consisting of fixed network, TV and mobile communications all for a single rate.
Another important element is the hybrid router. It is scheduled to be launched in Germany in 2014, combining the advantages of the fixed network – high, consistent capacity – with those of mobile – high transmission rate – to achieve top download speeds of up to 250 Mbit/s.
On top of that, service is to become simpler and faster. Customers are to be made able to carry out many processes online by themselves in future thanks to simplified service platforms. The intention is to make service simpler and faster and to ensure a seamless experience for the customer.
3. Win with partners
Deutsche Telekom wants to offer a wider range of products and services together with partners in future: "We build standardized platforms – imagine a power strip where partners simply plug in their services," said Telekom CEO Tim Höttges. Preference is to be given to innovative online services developed by partners to enhance Deutsche Telekom's range of products and services.
A simplified network infrastructure is a key factor in being able to offer a wider range of products and services together with partners in future. Partner products are flexibly integrated into these platforms and can thus be booked simply and directly by customers. Partners are to be put in a position to integrate their products and services both in contractual and technical terms into Deutsche Telekom's portfolio within three months. Deutsche Telekom is already doing this with partners such as Spotify and Evernote.
Platform business with partnering in the areas of M2M, smart home, intelligent networks and payment is particularly important. Examples include the Qivicon platform for networking and controlling in-house systems, which now has around 30 partners, or the successful cooperation with booksellers in the development of the Tolino e-reader.
In addition, Deutsche Telekom is growing its TV business. The company plans to further develop the TV platform for Germany and Europe with the aim of providing "TV across all screens," irrespective of whether the screen is a TV, a tablet, or a laptop. Deutsche Telekom's goal is to have around 10 million TV customers in the Germany and Europe segments by 2017.
4. Lead in business
Deutsche Telekom has high expectations of its business customer unit and in Germany intends to profit more from growth in IT solutions for the SME segment. Its strong position in telecommunications solutions is to be used to extend its market share of IT solutions for business customers. The focus is on cloud services, security solutions, convergent mobile and fixed-network products, along with solutions for virtual collaboration.
Group subsidiary T-Systems will restructure its business model and move towards transformation and integration services as well as scalable ICT services. The focus here is on the growth areas: IT platforms and cloud services.
B2B business will be intensified in the Group's European subsidiaries, too, primarily to generate increased revenue shares from ICT business.