DT to exploit business with new corporate unit

24 Jun 2004

Deutsche Telekom (DT) confirmed yesterday that it is to set up a new corporate unit to target the medium-sized business market to offset declines from its traditional core voice telephony sector, according to the Financial Times. The move is part of its chief executive Kai-Uwe Ricke’s long-stated intention to focus more heavily on the development of three potential growth drivers for the company – broadband, mobile telecoms and the business segment – and will result in a revision of the telco’s four-pillar strategy from next year. The new division will amalgamate parts of its existing T-Systems IT unit and T-Com fixed line arm and handle mostly medium-sized and some corporate accounts, reducing costly overlaps between the group’s existing divisional structure.