Bad news for DT ahead of 4Q results

8 Mar 2004

German incumbent Deutsche Telekom (DT) has been told that it cannot use its data concerning users of Tele2 to call up its rival’s preselection customers and try to win back business. A Munich regional court issued the temporary injunction against the telecoms giant after Tele2 claimed that DT targeted its customers to try and persuade them to return to the dominant operator in at least 250 separate instances. DT has lost significant market share since the German fixed line sector was opened up to competition. Further bad news for the operator comes with reports that analysts predict it could post its first loss in four quarters when it announces its 4Q 2003 results on Wednesday. Whilst DT is expected to announce its first full-year profit since 2000, its final quarter loss is expected to have widened due to costs associated with a faulty truck toll system it developed with auto manufacturer DaimlerChrysler.