DT unveils five-year plan to double sales

Deutsche Telekom is embarking on an ambitious five-year restructuring program designed to double its revenues to €30 billion by 2015.
 
The restructuring will see the telco focus on new growth areas including intelligent networks, IT, internet and network services, aiming to increase their share of sales from around 25% currently, to 50% in 2015.
 
That means a stronger focus on mobile data traffic, the firm‘s T-Systems IT business, improved presence in the European TV market, and offering more fibre-based internet connections in its domestic market.
 
Announcing the plan at an investor briefing yesterday, CEO René Obermann said the aim of the strategy was to “position the company as an open partner for other sectors, such as energy, software or the media. “
 
Opening up more partnership opportunities should help the firm begin to grow sales from 2012, with the goal of achieving ambitious gains by 2015.
 
Targets include growing top line mobile data revenue from €4 billion in 2009 to €10 billion by end-2015; internet services from €0.8 billion to €2-3 billion; and fixed-line broadband from €5 billion to €7 billion.
 
T-Systems will offer more cloud-based services in a bid to generate €8 billion in sales by 2015, a massive fourfold increase on 2009. The business unit would also seek to provide more IT solutions to energy, healthcare, media, and automotive industries.
 
Obermann says the restructuring is a brave move that is necessary to keep up with an evolving telecoms industry. “Two things are important: a high-margin core business, and the courage to focus on promising growth areas,” he said.
 
However, the strategy does not involve abandoning the firm’s traditional core fixed and mobile businesses. Obermann said the firm would defend its current market share by investing in next-generation networks capable of offering new services to subscribers.
 
The firm says it will also invest heavily in T-Mobile USA’s network this year. It is aiming to supply 185 million HSPA+ POPs, and wants to double the number of smartphones in use to eight million, in a bid to increase the division’s OIBDA margin to a minimum of 35% of service revenues by 2012, up from 31% last year.

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