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DT presents plan to merge German fixed, mobile units

30 Apr 2009

Reuters reports that Rene Obermann, CEO of German telecoms company Deutsche Telekom (DT), is set to present plans to merge the firm’s fixed and mobile divisions in Germany at an extraordinary shareholders’ meeting to be held later in the year. If the plan is approved by shareholders and the regulator, the Federal Network Agency (FNA), T-Mobile International will be merged into DT, making T-Mobile Deutschland a direct subsidiary of the telecoms giant. Following this, the two units T-Home and T-Mobile Deutschland will be combined into one company. The three service companies (Deutsche Telekom Kundenservice, Deutsche Telekom Technischer Service and Deutsche Telekom Netzproduktion) and retail unit Telekom Shop will then become wholly-owned subsidiaries of the newly combined entity. According to the report, the new structure will help reduce costs and will not result in job cuts, although some management posts would become redundant.

Germany, Deutsche Telekom (DT)

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