With its strategy "Fix – Transform – Innovate," Deutsche Telekom is transforming its business and aiming for a broader revenue mix. The Group is targeting new pockets of growth to account for a significant percent of future revenues.
The "Fix – Transform – Innovate" strategy has a dual focus: the first involves further stabilizing the company's traditional fixed and mobile access business. The market volume in the world-wide markets where Deutsche Telekom operates networks is estimated at more than 200 billion euros. The Group intends to defend its market share in its core business and continue its high-margin business models.
The second focus involves developing and expanding new pockets of growth. To achieve its targets, Deutsche Telekom has defined five areas of action in its strategic program until 2015:
1. Improve the performance of mobile-centric assets.
In the United Kingdom, the Group intends to make its joint venture with France Telecom a success. Its goal in the US is to regain an attractive market position. To this end, T-Mobile USA is investing heavily in network expansion and entering new marketing partnerships.
2. Leverage One Company in integrated assets.
The integration of fixed and mobile telephony in Germany and Europe will stabilize revenues, continue to improve service, and enable the development of integrated services and rates for customers. Cross-selling will open up additional revenue potential. The integration will enable synergies in the marketing, sales and service areas, which will in turn reduce costs.
3. Build networks and processes for the Gigabit Society.
Deutsche Telekom is investing some ten billion euros in Germany in the next three years. Among other projects, the company plans to connect up to ten percent of households in Germany with fiber optics by 2012. Deutsche Telekom also plans to roll out innovative wireless technologies to close the gaps in broadband coverage.
4. Connected Life across all screens.
The company wants to significantly increase its TV customer base in Europe, from the current 2.7 million. By 2015, it plans to have five million IPTV customers in Germany alone. Deutsche Telekom intends to be the market leader in the German pay-TV business by 2013.
5. Connected Work with unique ICT solutions.
Deutsche Telekom provides integrated platforms for both corporate customers and consumers, focusing on energy, healthcare, media distribution and connected cars. T-Systems intends to boost external revenues from a current six billion to eight billion euros in 2015, primarily outside of Germany. Another focus is dynamic services and cloud computing, where Deutsche Telekom is already the dominant company.