DT reconsiders EUR10bn investment plan?

29 Sep 2011

German telecoms giant Deutsche Telekom (DT) is reassessing its plan to invest EUR10 billion (USD13.6 billion) in its domestic market in 2010-12, the company’s chief technology officer Olivier Baujard told Reuters. ‘We are now to reveal our plans to be much more CAPEX efficient. It’s a mix of price reductions from the vendors, better engineering in terms of network architecture and being more selective on our investments,’ Baujard said. In March 2010 DT revealed it planned to invest the funds in the rollout of fibre-optic infrastructure, new mobile communications technologies, and IT processes to give customers more speed and new products. However, Baujard declined to confirm DT’s previous investment target, stating: ‘We are judged by the market on our capacity to generate cash flow that will serve to pay dividend. We are fighting against a decline of the top line, so something has to change. Either we can reverse it, but in the short term given the (economic) context it is a very unlikely possibility, or we have to shrink the costs.’

On the proposed sale of DT’s US business T-Mobile USA to AT&T, Baujard said the company believed that the deal would still go through. Last month the US Department of Justice (DoJ) filed a civil antitrust lawsuit to prevent AT&T from acquiring T-Mobile USA for USD39 billion, stating that the move would have a negative affect on competition.

Germany, Deutsche Telekom (DT), Telekom Deutschland