One way of addressing these pressures is through restructuring the business. Deutsche Telekom hopes that by integrating its fixed and mobile businesses (T-Home and T-Mobile) all fixed and mobile networks and services can be built, managed and marketed from a single mold, rather than in the standalone business units.
Wider transformation of the telco
Transformation is taking place at every level within the telco, and DT is no exception. As telcos migrate from multiple legacy networks to single next-generation networks and customers look to buy voice internet and TV services from their telco, the organisation of the business needs to reflect these changes too.
The reorganisation marks a shift from product-centric to customer-centric business units, although DT has yet to outline its detailed customer segments for the combined fixed and mobile entity. We expect these to be along the lines of consumer, business, wholesale and enterprise.
Once the sales, marketing and customer service functions as well as the business units become aligned with the customer segments, it is much easier to provide a one-stop shop for the customer. This in turn lowers costs through the reduced need for multiple customer service numbers and calls, enables the implementation of a single IT system for customer management and therefore improves the customer experience and hopefully loyalty too.
The reorganisation has led to management changes, including new roles within the Operations team that will focus on integration of IT across the group. This aligns with the best-practice approach we have seen elsewhere – with Telstra and Telefonica, for example – and should promote innovation within DT along with the desired integration and synergies.