Deutsche Telekom tackles US division's problems

Deutsche Telekom has revealed a new CEO for its T-Mobile USA business, as it looks to turnaround the loss-making unit’s performance.
 
Current CEO Robert Dotson will step down early next year and be replaced by former T-Mobile Deutschland chief and current European CRO Philipp Humm, as the firm looks to halt falling revenues and subscriber losses at the division.
 
Revenues fell 7.8% to €3.8 billion in 1Q10, and the firm lost 77,000 subscribers during the period.
 
The lacklustre 1Q result at what was once the darling of the Deutsche Telekom empire, was part of a trend which began last year, with the unit feeling the heat of increased competition and aging infrastructure, FT.com said
 
Gartner analyst Katja Ruud told WSJ.com the change in management is long overdue, adding that she was surprised “It's certainly time for a strategy review.”
 
Humm brings a successful track record to the table, having turned around the performance of T-Mobile Deutschland during his time at the helm between 2005 and 2008.
 
He also has experience of the US market, gained during stints at McKinsey & Company, Proctor & Gamble, and Amazon.

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