[Deutsche Telecom] announces Genghis Khan as the New President & CEO
>>Not only is DT the largest carrier in Europe, it is the third largest in the world. Its market will be completely open to competition by January 1, 1998. Would that ours were.<<
Pat,
I fully understand the breadth of DT. Having lived in Germany, one quickly learns the size, as I'm sure Eric and Andreas will attest to.
Allowing Deutsche Telecom to go public is like telling Genghis Khan
"The other leaders and their armies say the are not going to put a fight should you attack" of course DT is more like Genghis Khan and Attila the Hun, and ole Achtung Baby all rolled into one.
Kinda reminds you of AT&T in the old days :)) Execpt on a much larger
scale.
I believe I sent you info when I learned DT was doing an IPO last year, and on April 27, 97 I sent you "Deutsche Telekom: Alliances and Participating Interests"
Since I can't figure out how to get the URL to work?? though it works in mail?? I'll post the story..
JW@KSC
(snip-snip)
Alliances and participating interests
On the road to becoming a global player
The telecommunications industry is currently undergoing a dynamic evolutionary process. The globalization of telecommunications, which until just a few years ago was dominated by national monopolies, is proceeding at great speed. More and more telecommunications companies are expanding internationally, thereby tapping new business opportunities in liberalized foreign markets. At the same time, telecommunications service providers are keeping pace with the growing requirements of globally operating corporate customers, which are increasingly demanding international telecommunications services from one source. Another force driving change in telecommunications is the convergence of telecommunications, information technology and the media business, which is producing one global multimedia industry.
Early strategic planning
Deutsche Telekom oriented its business strategy to the changing telecommunications market at an early stage. Over the past year, the company moved forward energetically with its internationalization strategy. With a number of alliances and participating interests, Deutsche Telekom took further decisive steps to safeguard its current business and expand it in the future. The company expanded its activities in growing areas of the telecommunications and multimedia market, while orienting the Group's structure to the requirements a modern stock corporation must meet in international competition.
A global player
In 1995, Deutsche Telekom continued its push to develop the Group into a Global Player in telecommunications. The cornerstones of Deutsche Telekom's internationalization strategy are its partnership with France Telecom and its alliance, built on this partnership, with the U.S. carrier Sprint Corporation.
Atlas: Agreement with the European Commission
The agreements for the establishment of the Franco-German Atlas joint venture were submitted to the European Commission for notification purposes in December 1994. In October 1995, Deutsche Telekom, France Telecom and the EU Commission reached agreement on the terms for approval of Atlas. This paved the way for the official start of the business activities of the joint venture, which offers pan-European Telecommunications services.
The "Global One" Trilateral Alliance
The two European network operators and the EU Commission also agreed on the prerequisites for approval of the alliance between Deutsche Telekom, France Telecom and Sprint. In connection with this alliance, the following significant decision was taken in the year under review: On 22 June 1995, the management board chairmen of the three companies signed the agreements for a new global partnership. Among the provisions set forth by these agreements is that Deutsche Telekom and France Telecom will jointly acquire 20 percent of the U.S. carrier's shares. In July 1995, the conditions for approval of the joint venture were negotiated with the Department of Justice, the U.S. cartel authority. On 15 December 1995, the US regulatory authority, the Federal Communications Commission (FCC), granted approval for the two companies' stake in Sprint. This provided the necessary basis for the trilateral global telecommunications alliance. The product portfolio of the joint venture, which began operations in early 1996 under the name "Global One", comprises telecommunications services for business and residential customers, as well as a broad spectrum of services for other network operators.
Commitment in Hungary increased
Apart from its cooperation with France Telecom and Sprint, Deutsche Telekom continued to expand its international business in promising markets, together with other partners. An important emphasis of its international activities is on the young Eastern European markets.
Deutsche Telekom has established a backbone network that will enable it to function as a hub for traffic to and from Eastern Europe. Its most important commitments include the establishment of a modern telecommunications infrastructure in Hungary. In December 1993, Deutsche Telekom acted through MagyarCom, a joint venture founded together with the U.S. company Ameritech, to acquire about 30 percent of the shares of Mat v, the leading Hungarian telecommunications company. Mat v has a nationwide telephone concession that will last 25 years. In December 1995, an increase of MagyarCom's share in Mat v to over 67 percent was agreed for January 1996. With its plans for this increase, Deutsche Telekom underscored its intent to make Mat v the leading provider of telecommunications services in Eastern Europe.
In 1995, nearly 340,000 new telephone lines were installed in the 39 Mat v local network regions; this figure considerably exceeded the number of new lines agreed in the concession documents. As of the end of 1995, Mat v had increased the number of telephone lines for Hungarian customers by more than half, to a total of 1.9 million, in comparison with 1993.
Interest in Indonesia
Deutsche Telekom MobilNet GmbH (DeTeMobil) also set milestones in the company's internationalization efforts. In April 1995, Deutsche Telekom's mobile communications subsidiary was chosen to assume 25 percent of the shares in the first private Indonesian telecommunications company, Satelit Palapa Indonesia (Satelindo). With its interest in Satelindo, DeTeMobil has gained access to one of the most attractive growth markets in Asia.
The Indonesian company operates a GSM-standard digital mobile communications network.
Satelindo also has a license to operate telecommunications and TV satellites, and it has yet another license - to operate the country's only private switching node for direct international telephone calls. As a result, Satelindo is one of Deutsche Telekom's largest international direct investments.
GSM License in Austria
In December 1995, the Austrian Ministry of Transport awarded a license to the ™ Call consortium, led by DeTeMobil, to establish Austria's second digital mobile communications network. This was yet another success for the company in an attractive growth market.
Industry experts expect the Austrian mobile communications market to have double-digit growth in the coming years. ™ Call - in which DeTeMobil has a 25 percent interest - plans to gain some 400,000 customers in Austria by the year 2000. The commercial start of the ™ Call network is scheduled for summer 1996.
Subsidiary for online services
The online-services sector is one of the fastest growing parts of the dynamic telecommunications market. Deutsche Telekom's T-Online has more subscribers in Germany than any other online service. In December 1995, Deutsche Telekom founded Online Pro Dienste GmbH & Co. KG, whose purpose is to support continued growth of T-Online. Online Pro Dienste will market the T-Online service; the technical platform will continue to be provided by Deutsche Telekom. Deutsche Telekom is also planning to cooperate with Bertelsmann AG, Axel Springer AG and America Online Inc. in the area of online services.
Start for multimedia software company
The role of software in multimedia telecommunications applications is constantly increasing. In early 1995, Deutsche Telekom responded to this growing importance by founding Multimedia Software GmbH. This company, which is located in Dresden, develops applications-oriented software for multimedia telecommunications and interactive media use.
Acquisition of additional TKS shares
By acquiring additional shares in TKS - Telepost Kabel-Servicegesellschaft mbH - Deutsche Telekom strengthened its position last year in the growing cable TV sector. TKS markets cable connections, thereby making a significant contribution to the development of this important market. Deutsche Telekom increased its holdings in TKS by 35 percent, to over 97 percent.
Joint venture with SAP
In the year under review, Deutsche Telekom and SAP AG, one of the world's leading companies for standard software, agreed to establish a joint venture. The aim of the joint venture, in which Deutsche Telekom holds a 50 percent share, is the development and maintenance of a telecommunications industry software product based on SAP's R/3 program.
This product is expected to significantly optimize processes such as processing of customer orders. The companies also plan to market the R/3 program to telecommunications companies worldwide.
DeTeBau becomes DeTe Immobilien
By founding its DeTe Immobilien subsidiary last year, Deutsche Telekom created the organizational basis for even more efficient management of its land and buildings. DeTe Immobilien's tasks include optimizing property use and marketing the company's unused land and buildings assets. |
