Deutsche Telekom AG (; short form often just Telekom, DTAG or DT; stylised as ·T·) is a German
telecommunications
Telecommunication is the transmission of information by various types of technologies over wire, radio, optical, or other electromagnetic systems. It has its origin in the desire of humans for communication over a distance greater than that ...
company that is headquartered in
Bonn
The federal city of Bonn ( lat, Bonna) is a city on the banks of the Rhine in the German state of North Rhine-Westphalia, with a population of over 300,000. About south-southeast of Cologne, Bonn is in the southernmost part of the Rhine-Ru ...
and is the largest telecommunications provider in
Europe
Europe is a large peninsula conventionally considered a continent in its own right because of its great physical size and the weight of its history and traditions. Europe is also considered a Continent#Subcontinents, subcontinent of Eurasia ...
by revenue. Deutsche Telekom was formed in 1995 when
Deutsche Bundespost (at that time a
monopoly
A monopoly (from Greek language, Greek el, μόνος, mónos, single, alone, label=none and el, πωλεῖν, pōleîn, to sell, label=none), as described by Irving Fisher, is a market with the "absence of competition", creating a situati ...
under
state ownership) was privatized. Since then, Deutsche Telekom has featured among
Fortune 500 companies, with its latest ranking at number 62 (in 2022). The company operates several subsidiaries worldwide, including the mobile communications brand
T-Mobile.
As of April 2020, the German government holds a 14.5% stake in company stock directly, and another 17.4% through the government bank
KfW. The company is a component of the
EURO STOXX 50 stock market index
In finance, a stock index, or stock market index, is an index that measures a stock market, or a subset of the stock market, that helps investors compare current stock price levels with past prices to calculate market performance.
Two of th ...
.
History
The
Deutsche Bundespost was the federal German government
postal administration created in 1947 as a successor to the
Reichspost. It was also the major telephone company in
West Germany
West Germany is the colloquial term used to indicate the Federal Republic of Germany (FRG; german: Bundesrepublik Deutschland , BRD) between its formation on 23 May 1949 and the German reunification through the accession of East Germany on 3 ...
.
On 1 July 1989, as part of a post office reform, Deutsche Bundespost was split into three entities, one being Deutsche Telekom. On 1 January 1995, as part of another reform, Deutsche Bundespost Telekom became Deutsche Telekom AG, and was privatized in 1996. As such, it shares a common heritage with the other privatized Deutsche Bundespost companies,
Deutsche Post
The Deutsche Post AG, operating under the trade name Deutsche Post DHL Group, is a German multinational package delivery and supply chain management company headquartered in Bonn, Germany. It is one of the world's largest courier companies ...
(DHL) and
Deutsche Postbank.
Deutsche Telekom was the monopoly
Internet service provider
An Internet service provider (ISP) is an organization that provides services for accessing, using, or participating in the Internet. ISPs can be organized in various forms, such as commercial, community-owned, non-profit, or otherwise priva ...
(ISP) for
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated betwee ...
until its privatization in 1995, and the dominant ISP thereafter.
Until the early 21st century, Deutsche Telekom controlled almost all
Internet
The Internet (or internet) is the global system of interconnected computer networks that uses the Internet protocol suite (TCP/IP) to communicate between networks and devices. It is a '' network of networks'' that consists of private, p ...
access by individuals and small businesses in Germany, as they were one of the first German telecom units.
On 6 December 2001, Deutsche Telekom became the first official partner of the
2006 FIFA World Cup
The 2006 FIFA World Cup, also branded as Germany 2006, was the 18th FIFA World Cup, the quadrennial international football world championship tournament. It was held from 9 June to 9 July 2006 in Germany, which had won the right to host th ...
.
On 1 January 2005, Deutsche Telekom implemented a new company structure. The two organizational business units of T-Com and T-Online were merged into the Broadband/Fixed Network (BBFN)
strategic business unit (T-Online merged with parent Deutsche Telekom in 2006). It provides around 40 million narrowband lines, over 9 million
broadband
In telecommunications, broadband is wide bandwidth data transmission which transports multiple signals at a wide range of frequencies and Internet traffic types, that enables messages to be sent simultaneously, used in fast internet connections. ...
lines, and has 14 million registered Internet customers.
In 2008, the structure was changed again. T-Online was separated from Deutsche Telekom and merged with T-Com to form the new unit T-Home. In September 2010,
Orange parent
France Télécom
Orange S.A. (), formerly France Télécom S.A. (stylized as france telecom) is a French multinational corporation, multinational telecommunications corporation. It has 266 million customers worldwide and employs 89,000 people in France, and 5 ...
and
T-Mobile parent Deutsche Telekom merged their operations in the
United Kingdom
The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom (UK) or Britain, is a country in Europe, off the north-western coast of the continental mainland. It comprises England, Scotland, Wales and ...
to create the largest mobile network in Britain,
EE.
In April 2010, T-Mobile was merged with T-Home to form Telekom Deutschland GmbH. This unit now handles all products and services aimed at private customers. In October 2012, Deutsche Telekom and Orange created a 50-50% joint venture named BuyIn for regrouping their procurement operations and benefiting from
economies of scale
In microeconomics, economies of scale are the cost advantages that enterprises obtain due to their scale of operation, and are typically measured by the amount of output produced per unit of time. A decrease in cost per unit of output enables ...
.
In April 2013,
T-Mobile US and
MetroPCS merged their operations in the
United States
The United States of America (U.S.A. or USA), commonly known as the United States (U.S. or US) or America, is a country Continental United States, primarily located in North America. It consists of 50 U.S. state, states, a Washington, D.C., ...
. In February 2014, Deutsche Telekom acquired the remaining parts of its
T-Mobile Czech Republic division for around €800 million. The size of the remaining stake was numbered at 40 percent.
In December 2014, it was announced that Deutsche Telekom were in talks with
BT Group on the acquisition of
EE, and part of the deal was to provide Deutsche Telekom a 12% stake and a seat on the board in the BT Group upon completion. BT Group announced agreement in February 2015 to acquire EE for £12.5 billion
and received regulatory approval from the
Competition and Markets Authority on 15 January 2016. The transaction was completed on 29 January 2016.
In September 2015, Deutsche Telekom launched the "Puls tablet", a
Tablet computer with
Android version 5.
In February 2016, at the
Mobile World Congress
MWC Barcelona (formerly but still commonly referred to as Mobile World Congress) is an annual trade show organised by GSMA, dedicated primarily to the mobile communications industry.
The event is held in Barcelona, Catalonia, Spain at the ...
, in
Barcelona
Barcelona ( , , ) is a city on the coast of northeastern Spain. It is the capital and largest city of the autonomous community of Catalonia, as well as the second most populous municipality of Spain. With a population of 1.6 million within c ...
, Deutsche Telekom jointly launched the
Telecom Infra Project (TIP) with
Intel
Intel Corporation is an American multinational corporation and technology company headquartered in Santa Clara, California. It is the world's largest semiconductor chip manufacturer by revenue, and is one of the developers of the x86 ser ...
,
Nokia
Nokia Corporation (natively Nokia Oyj, referred to as Nokia) is a Finnish multinational telecommunications, information technology, and consumer electronics corporation, established in 1865. Nokia's main headquarters are in Espoo, Finland, i ...
,
Facebook
Facebook is an online social media and social networking service owned by American company Meta Platforms. Founded in 2004 by Mark Zuckerberg with fellow Harvard College students and roommates Eduardo Saverin, Andrew McCollum, Dust ...
,
Equinix,
SK Telecom
SK Telecom Co., Ltd. ( or ) is a South Korean wireless telecommunications operator and former film distributor and is part of the SK Group, one of the country's largest chaebols. It leads the local market with 50.5 percent share as of 2008. ...
, and others, which builds on the
Open Compute Project
The Open Compute Project (OCP) is an organization that shares designs of data center products and best practices among companies, including ARM, Meta, IBM, Wiwynn, Intel, Nokia, Google, Microsoft, Seagate Technology, Dell, Rackspace, Hewle ...
model to accelerate innovation in the telecom industry.
In February 2020, Deutsche Telekom joined a new partnership called HAPS Alliance to promote the use of high altitude vehicles in the Earth's stratosphere with the goal of eliminating the digital divide.
On April 1, 2020,
Sprint completed the
merger with T-Mobile US, making T-Mobile US the owner of Sprint and becoming its subsidiary until the Sprint brand is phased out. The merger also led to
SoftBank Group, the then-owner of Sprint to hold up to 24% of New T-Mobile's shares while Deutsche Telekom holds up to 43% of its shares. The remaining 33% is since held by public shareholders.
In September 2021, Deutsche Telekom sold
T-Mobile Netherlands for €5.1 billion to the investment companies
Apax Partners
Apax Partners LLP is a British private equity firm, headquartered in London, England. The company also operates out of six other offices in New York, Hong Kong, Mumbai, Tel Aviv, Munich and Shanghai. As of December 2017, the firm, including its ...
and
Warburg Pincus
Warburg Pincus LLC is a global private equity firm, headquartered in New York, with offices in the United States, Europe, Brazil, China, Southeast Asia and India. Warburg has been a private equity investor since 1966. The firm currently has over ...
.
Finances
For the fiscal year 2017, Deutsche Telekom reported earnings of €3.5 billion, with an annual revenue of €74.9 billion, an increase of 2.5% over the previous fiscal cycle. Deutsche Telekom's shares traded at over €14 per share, and its market capitalization was valued at US$68.4 billion in November 2018.
Operations
Deutsche Telekom also holds substantial shares in other telecom companies, including Central European subsidiaries
Slovak Telekom (
Slovakia
Slovakia (; sk, Slovensko ), officially the Slovak Republic ( sk, Slovenská republika, links=no ), is a landlocked country in Central Europe. It is bordered by Poland to the north, Ukraine to the east, Hungary to the south, Austria to the ...
),
Magyar Telekom (
Hungary
Hungary ( hu, Magyarország ) is a landlocked country in Central Europe. Spanning of the Carpathian Basin, it is bordered by Slovakia to the north, Ukraine to the northeast, Romania to the east and southeast, Serbia to the south, Cr ...
). Furthermore,
Magyar Telekom holds majority shares in
Makedonski Telekom (
North Macedonia
North Macedonia, ; sq, Maqedonia e Veriut, (Macedonia before February 2019), officially the Republic of North Macedonia,, is a country in Southeast Europe. It gained independence in 1991 as one of the successor states of Socialist Feder ...
), and
Hrvatski Telekom (
Croatia
, image_flag = Flag of Croatia.svg
, image_coat = Coat of arms of Croatia.svg
, anthem = " Lijepa naša domovino"("Our Beautiful Homeland")
, image_map =
, map_caption =
, capi ...
) holds majority shares in
Crnogorski Telekom (
Montenegro
)
, image_map = Europe-Montenegro.svg
, map_caption =
, image_map2 =
, capital = Podgorica
, coordinates =
, largest_city = capital
, official_languages = ...
).
DT also holds shares in the Hellenic telecommunication operator
OTE, which also have shares in several other companies like
Telekom Romania and the IT&C retailer Germanos. Deutsche Telekom also operates a wholesale division named International Carrier Sales & Solutions (ICSS) that provides white label voice and data solutions to large carriers including T-Mobile.
OTE also used to have shares in
One Telecommunications
One Telecommunications (also known as One Albania) is a telecommunications company that operates in Albania, previously as Albanian Mobile Communications (AMC), and as Telekom Albania. As AMC, it was part of the COSMOTE Group from 2000, and in 20 ...
operating in Albania. Prior to its sale it was known as Telekom Albania using DT's logo and marketing strategies.
Operation of telephone companies involves billing-software or "BSS". Deutsche Telekom's T-Mobile billing was performed on
Israeli-backend systems until 2014, when
Ericsson
(lit. "Telephone Stock Company of LM Ericsson"), commonly known as Ericsson, is a Swedish multinational networking and telecommunications company headquartered in Stockholm. The company sells infrastructure, software, and services in inform ...
was selected to replace the Israeli backend.
T-Systems
T-Systems sells worldwide products and services to medium to very large business customers. The focus is on the marketing of complex services and industry solutions.
Deutsche Telekom Global Carrier
Deutsche Telekom Global Carrier is formerly known as Deutsche Telekom International Sales and Solutions. It is an international wholesale arm of Deutsche Telekom. The products include Voice Termination, Ethernet, IP-Transit, Mobile and Roaming as well as In-flight Internet Access for the aviation industry. It operates a
Tier-1 network
A Tier 1 network is an Internet Protocol (IP) network that can reach every other network on the Internet solely via settlement-free interconnection (also known as settlement-free peering). Tier 1 networks can exchange traffic with other Tier 1 net ...
.
European Aviation Network
Together with Inmarsat and Nokia, Deutsche Telekom develops a hybrid network for faster internet access on board the planes in Europe. It is a combination of data transmission via Inmarsat Satellite and Deutsche Telekom's LTE ground stations throughout the European continent.
Controversy
In November 2019, Deutsche Telekom was part of a controversy when word came out it had sued
Lemonade Insurance, a
New York-based company, for their use of the color magenta. Deutsche Telekom argued that the use of the color magenta by Lemonade Insurance (and similar looking variations of the color) violated one of their trademarks. The lawsuit was reported by multiple online sources and eventually picked up on social media. Lemonade Insurance started an online campaign called #freethepink to gain support for using the color magenta.
Amid
concerns over Chinese involvement in 5G wireless networks in Europe, Deutsche Telekom temporarily put all deals to buy 5G network equipment on hold in 2019, as it awaited the resolution of a debate in Germany over whether to ban Chinese vendor
Huawei
Huawei Technologies Co., Ltd. ( ; ) is a Chinese multinational technology corporation headquartered in Shenzhen, Guangdong, China. It designs, develops, produces and sells telecommunications equipment, consumer electronics and various sma ...
on security grounds.
[Douglas Busvine (December 4, 2019)]
Exclusive: Deutsche Telekom freezes 5G deals pending Huawei ban decision
''Reuters
Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world.
The agency was est ...
''.
See also
*
References
{{Authority control
German brands
Telecommunications companies of Germany
Telecommunications companies established in 1995
Companies based in Bonn
German companies established in 1995
1996 initial public offerings
Companies listed on the Frankfurt Stock Exchange
Multinational companies headquartered in Germany
Companies in the Euro Stoxx 50
Government-owned companies of Germany
Tier 1 networks
Companies in the TecDAX
Softbank portfolio companies