Deutsche Telekom shifts focus away from telephony

Deutsche Telekom is placing cloud computing and network integration at the heart of its future strategy, as it bids to become a one-stop-shop for digital customers.
The telco is pledging to fight for customers using own-brand products, detailing four key action areas designed to differentiate it from the competition. The firm plans to focus on gigabit-capable integrated networks; seek product innovation through new partnerships; offer secure cloud solutions; and improve customer experience.
“We aim to be the first choice for connected life and work from our customers’ perspective,” chief executive René Obermann explains. While he states the firm will maintain an existing strategy of targeting new growth markets, set out in 2010, he notes “the world and, in particular, our industry have moved forward over the last two years, so we are emphasizing certain aspects of our strategy and integrating new ideas to take account of this.”
Deutsche Telekom’s chief believes the strategy will make up for declines in the telco’s traditional telephony revenues, which contributed to a €165 million drop in revenue year-on-year in 1Q12. The telco predicts revenues from mobile internet, connected home, consumer internet services, intelligent networks and its T-Systems division will hit €29 billion in the coming years, up from €15 billion in 2009.