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Wireless Carrier Review: Deutsche Telekom

Founded in 1995, Deutsche Telekom AG — commonly shortened to Telekom or DT — is a German-based Fortune 500 telecommunications company and the largest telecommunications provider in Europe by revenue. DT is the parent company for several well known global subsidiaries, including the U.S. carrier T-Mobile. 

The company manages more than 218,000 employees across the globe, according to its 2020 Annual Report. DT has enjoyed a meteoric rise to the top of the U.S. telecommunications market since splitting off from the former state-owned monopoly Deutsche Bundespost in 1995 and is now ranked among the top 100 Fortune 500 companies. 

DT reports that it currently serves 242 million mobile customers, 27 million fixed-network lines, and 22 million broadband lines. 

This profile provides insight into all of DT, including information on its solutions, target markets, partnerships, user opinion, industry recognition and financial position: 

Deutsche Telekom logo.

Courtesy Deutsche Telekom.

Mobile solutions

DT’s enterprise mobile solutions portfolio includes various tools and services geared toward medium- and large-scale organizations: 

  • Cloud and infrastructure: Delivered as a service, DT’s cloud and infrastructure support includes remote IT services.

  • Smart city: This DT initiative considers enterprise networking and mobility in the context of the surrounding area and helps to guide companies in decisions about where and how to build out corporate networks and infrastructures. 

  • Connectivity: DT offers enterprise-specific interconnectivity solutions that keep companies connected remotely across multiple sites and countries. 

  • Internet of Things (IoT) and machine to machine (M2M): DT allows teams to view and manage IoT devices and SIM cards from a desktop interface and can connect to proprietary apps through API. 

  • Big data analytics: DT provides big data analysis as part of its mobility offerings to aid in spending and infrastructure decisions related to connectivity and beyond.

Target markets

DT’s primary focus is on building out its existing mobile telecommunications network, which encompasses corporate entities and a wide range of large regional and global organizations. 

DT holds shares in several other major global telecommunications companies, including:

  • Slovak Telekom

  • Magyar Telekom

  • Hellenic Telecommunications Organisation S.A., OTE Group 

  • Telekom Romania

The company operates Deutsche Telekom Global Carrier (DTGC), a wholesale division, as well. DTGC facilities white-label voice and data solutions for prominent telecommunications carriers such as T-Mobile.

While DT’s U.S. presence is mostly related to its T-Mobile arm, the company’s global impact is central to its overall success. The focus in the U.S. is on wireless access, but in Germany, the company manages a substantial fixed-line business in addition to wireless. DT is the market leader in wireless in Germany, raking in higher revenue than Vodafone and Telefónica. 

Partnerships

DT boasts a long list of partnerships with prominent companies, including:

  • Netflix

  • PayPal

  • Microsoft

  • Google

  • Symantec

  • Wandera

  • Fontech

  • D2iQ

User opinion

As a parent company to a large number of subsidiaries, user rankings are mostly helpful when considering one of DT’s smaller focuses. That said, there are two prominent review ranks available related to DT at a high level.

Gartner’s Peer Insights users rate DT 4.5 out of 5 stars. Top ranking categories include Planning & Transition and Delivery & Execution. G2 users rate DT 4 out of 5 stars

To gain a better understanding of how DT ranks as a mobile provider, it’s helpful to take a look at how U.S.-based T-Mobile ranks among users. 

Here are a few aggregated scores from prominent user review sites:

Review Site

Rating

Reviews.org

4.0/5.0

Best Company

4.0/5.0

Consumer Affairs

3.5/5.0

Industry recognition 

Recent industry recognition includes:

  • German Brand Awards 2021, Best of Best in the Brand Innovation of the Year for the brand’s “Liquid Brand Design” concept and the “Magenta Moon Campus” educational initiative

  • Ranked among the 7% best of the 9,600 participating companies on the 2021 CDP Supplier Engagement Leader List, which ranks companies on their supply chain carbon footprints

  • Included on Dow Jones Sustainability Index for the past six years 

  • Cisco Partner Summit Digital Global Award, Technology Excellence: Service Provider of the Year (2021)

  • Digital Champions Award (2020)

Financial position

At its annual general meeting in May of 2021, DT raised its medium-term core profit outlook to 3%-5% annual growth through 2024. Beyond 2024, the company anticipates that it will maintain a 1%-2% increase. 

Industry analysts expect DT’s adjusted earnings per share to rise to over 1.75 euros by 2024, a significant increase over 2020 earnings, which averaged 1.20 euros per share. 

DT’s continued success is due in part to the $26.5 billion takeover by DT's T-Mobile of smaller rival Sprint. The merger resulted in a $146 billion company. By late 2020, T-Mobile surpassed AT&T to become the second-largest mobile carrier in the U.S., behind Verizon, according to The Motley Fool. 

Conclusions

“Deutsche Telekom” may not be a household name in the U.S., but millions of American consumers rely on the brand for mobile connectivity through its T-Mobile division. 

DT’s high-profile T-Mobile/Sprint merger has paved the way for T-Mobile to climb to the second ranking position among mobile carriers in the U.S. The company’s annual report indicates that DT expects to continue growing over the next several years, albeit at somewhat slower rates than the immediate post-merger bump. 

Deutsche Telekom is a proven global leader in the mobile telecommunications industry. Partnering with or investing in DT is likely a safe, smart choice for enterprises and individuals seeking mobility solutions. 

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