DTEGY - Deutsche Telekom AG

Other OTC - Other OTC Delayed Price. Currency in USD
16.40
-0.22 (-1.32%)
At close: 3:59PM EDT
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Previous Close16.62
Open16.36
Bid0.00 x 0
Ask0.00 x 0
Day's Range16.33 - 16.48
52 Week Range15.51 - 17.95
Volume77,208
Avg. Volume275,830
Market Cap77.904B
Beta (3Y Monthly)0.12
PE Ratio (TTM)16.98
EPS (TTM)0.97
Earnings DateN/A
Forward Dividend & Yield0.78 (4.72%)
Ex-Dividend Date2019-03-29
1y Target Est20.03
Trade prices are not sourced from all markets
  • T-Mobile-Sprint Deal With Department of Justice May Be Stalling
    Motley Fool2 days ago

    T-Mobile-Sprint Deal With Department of Justice May Be Stalling

    T-Mobile's parent company doesn't want to enable a potential competitor.

  • Reuters2 days ago

    UPDATE 2-U.S. Justice Department may sue to block Sprint, T-Mobile merger -source

    The U.S. Justice Department has told T-Mobile US Inc and Sprint Corp to wrap up a deal by the end of next week to sell assets that are to be divested as a condition of their proposed merger or face a lawsuit aimed at stopping the transaction, a source familiar with the deal said on Thursday. T-Mobile and Sprint did not immediately respond to Reuters' requests for comment. The Justice Department declined to comment.

  • EU clears Vodafone's $22 billion Liberty deal
    Reuters2 days ago

    EU clears Vodafone's $22 billion Liberty deal

    BRUSSELS/LONDON (Reuters) - Brussels gave its blessing to Vodafone's $22 billion purchase of Liberty Global's cable networks in Germany and central Europe, clearing the way for the British company to become Europe's largest mobile, broadband and TV provider. The deal is the standout move by Vodafone in its bid to become a provider of superfast broadband and pay-TV, rather than just a pure mobile provider. The strategy, launched by former CEO Vittorio Colao, is designed to increase customer spending and deepen user loyalty.

  • Reuters2 days ago

    UPDATE 1-EU clears Vodafone's $22 billion Liberty deal

    BRUSSELS/LONDON, July 18 (Reuters) - Brussels gave its blessing to Vodafone's $22 billion purchase of Liberty Global's cable networks in Germany and central Europe, clearing the way for the British company to become Europe's largest mobile, broadband and TV provider. The deal is the standout move by Vodafone in its bid to become a provider of superfast broadband and pay-TV, rather than just a pure mobile provider.

  • Moody's3 days ago

    ISS Global A/S -- Moody's announces completion of a periodic review of ratings of ISS Global A/S

    Moody's Investors Service ("Moody's") has completed a periodic review of the ratings of ISS Global A/S and other ratings that are associated with the same analytical unit. The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the ratings in the context of the relevant principal methodology(ies), recent developments, and a comparison of the financial and operating profile to similarly rated peers. This publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future.

  • Vodafone launches 5G in Germany, challenges D.Telekom on price
    Reuters4 days ago

    Vodafone launches 5G in Germany, challenges D.Telekom on price

    Vodafone said on Tuesday it was launching 5G services in Germany, taking on Deutsche Telekom by offering cheaper deals and reaching more cities than the market leader that went live last week. Vodafone, which has already launched limited 5G services in its British home market, is switching on 5G antennae in 20 German towns and cities - a figure that Deutsche Telekom only expects to reach next year. "We are democratising 5G," Vodafone's Germany chief Hannes Ametsreiter said in a statement.

  • State AGs fighting T-Mobile, Sprint merger say October trial may not be possible
    Reuters5 days ago

    State AGs fighting T-Mobile, Sprint merger say October trial may not be possible

    An attorney for the state attorneys general who filed a lawsuit in hopes of stopping T-Mobile's $26 billion merger with Sprint told the judge on Monday that an Oct. 7 trial may not be possible. In a letter to Judge Victor Marrero on Monday, attorney Glenn Pomerantz said that in exchange for the expedited October 7 trial date, the states had been promised materials on a settlement between the Justice Department and the companies by June 28. "Plaintiff states engaged in discussions yesterday with defendants regarding the appropriate trial date and pre-trial schedule and continue to confer with defendants," Pomerantz wrote in his letter.

  • Reuters5 days ago

    Deutsche Telekom loses lawsuit over all-you-can-watch video product

    Deutsche Telekom has lost a legal battle to continue offering an all-you-can-watch mobile video product after a court sided with the German regulator, saying it violated European rules on roaming and network neutrality. The appeals court in Muenster ruled that Deutsche Telekom's StreamOn product could no longer be offered in its current form, confirming a lower court decision in favour of restrictions imposed by the Federal Network Agency (BNetzA) in December 2017.

  • Bloomberg10 days ago

    Dish’s Charlie Ergen Can Make or Break T-Moblie-Sprint Deal

    (Bloomberg Opinion) -- Players beware when Charlie Ergen holds all the cards. As T-Mobile US Inc. and Sprint Corp. continue to fight in Washington for their long-awaited merger, the wily satellite-TV billionaire is the companies’ best hope for getting the deal through. Unless, of course, he walks away.Ergen, the 66-year-old chairman and co-founder of Dish Network Corp., has a reputation for being an finicky dealmaker, with a tendency to upset merger processes and then drop out. The former professional poker player would say he’s simply not afraid to fold his cards – or alienate his peers. Case in point: A few years ago, Ergen offered to buy both Sprint and Clearwire, which then turned into a bidding war against Sprint for Clearwire, a collection of wireless-spectrum assets. Ergen ultimately gave up on both pursuits, but not before driving Sprint to pay about 70% more than it initially bid. Sprint got Ergened. Back to present day, and what do you know: Sprint’s fate pretty much rests in Ergen’s hands, as the U.S. Department of Justice determines whether to approve or reject its $59 billion takeover by T-Mobile. Makan Delrahim, the DOJ’s head of antitrust, reportedly wants the companies to divest assets that could be used to create a new viable fourth competitor as a check on the industry’s pricing power. So Ergen, who had been among the merger’s biggest opponents, is now ostensibly ready to be the deal’s savior by acquiring those assets and committing to morphing Dish into a full-fledged wireless carrier. Maybe. Over the years, Ergen had gamed the government auction system to scoop up Dish’s own valuable spectrum licenses, which have a use-it-or-lose-it provision with nearing deadlines. Taking on the scraps from the T-Mobile-Sprint deal could ease that pressure and help Ergen make good on his promises to build a network. But if unnamed sources cited by the New York Post are to be believed, Deutsche Telekom AG, T-Mobile’s parent, is insisting it will only hand those assets to Dish if it vows not to sell more than a 5% stake in itself to a third party such as Google or Amazon.com Inc., which are two giant would-be threats to the industry.It makes sense that T-Mobile’s side would be worried about Dish teaming up with one of those deeper-pocketed companies, as I wrote last month. And agreeing not to do so certainly isn’t in Dish’s best interests. Ergen has said he needs a partner for Dish’s network build-out, which presumably would entail some sort of shared ownership.For that reason, Ergen could just walk away once again. Without him, there may be no T-Mobile-Sprint merger. After all, 13 states and the District of Columbia have sued to block the deal in a trial that may start in October. No deal could also mean T-Mobile turns to Dish to fulfill its spectrum needs.“Charlie is very hard to understand and predict,” billionaire dealmaker John Malone, owner of the Liberty media assets and director emeritus at Charter Communications Inc., said of Ergen a few years ago. “He’s very creative, but he’s a poker player.” (Ironically, Fox Business Network reported that because some at T-Mobile and Sprint are skeptical of Ergen’s dealings with the DOJ, they’re “praying” Charter and Malone will bid for the divested assets.)John Legere, T-Mobile’s outspoken and genial CEO, has been an ideal pitchman for the deal, smoothly handling inquisitions by Congress over the past year and constantly using his highly followed social media channels to promote the merger. But his style may be no match for Ergen’s whimsy. At the end of Legere’s latest episode of “Slow Cooker Sunday” this week – where he demonstrated recipes for Cajun corn on the cob and lemon feta drumsticks – the magenta-apron-wearing executive took a moment to make a wish. I think I know what it was. This may be the week that finally yields a decision from the DOJ, and what that decision will be is still anyone’s guess. But what I can say for certain is something I’ve said many times before: Good luck betting against Charlie Ergen. To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Germany Makes Push for Cloud Service Independent of U.S.
    Bloomberg10 days ago

    Germany Makes Push for Cloud Service Independent of U.S.

    (Bloomberg) -- German Economics Minister Peter Altmaier plans to build up a German cloud service to allow European companies to store data independent of Asian or U.S. rivals such as Amazon.com Inc.“Germany has a right to technological sovereignty,” said Altmaier during a visit to San Francisco. “Data clouds should not only be set up in the U.S. or China, but also in Germany so that European companies, which want secure and reliable data storage, have this option.”Altmaier’s plans are a second attempt to build up an independent German cloud service. Deutsche Telekom AG has been marketing its own cloud as a secure alternative to U.S. platforms, but at the end of 2018 began offering access to Amazon’s data centers in a recognition of its longtime rival’s dominance in Europe.The minister said he’s seeking partners for his planned cloud alliance and is in talks with SAP SE, Deutsche Telekom and other companies. He expects a decision by the companies in the next months, he said.Geopolitical tensions and trade wars are making European politicians cautious about domestic champions ceding control of their data to technology suppliers from the U.S. or China, fearing that providers could deny access to critical information about customers or production, or serve as a venue for rogue agents.Under the Trump Administration’s Cloud Act (or the “Clarifying Lawful Overseas Use of Data Act”) that was signed last year, all U.S. cloud providers can be ordered to provide local authorities data stored on their servers no matter where that data is physically stored. A similar concept has been enshrined in Chinese law since 2017, in which information of citizens must be stored in-country and accessible on demand to the authorities.Agnes Pannier-Runacher, France’s deputy economy minister, said in an interview with Bloomberg in June that European businesses relinquishing control of their data was “a systemic risk” to the competitiveness and sovereignty of an economy.Germany’s central bank has also recently warned the region’s banking sector that the move to shifting data on the cloud will make the industry harder to monitor.(Updated with additional context.)To contact the reporter on this story: Birgit Jennen in Berlin at bjennen1@bloomberg.netTo contact the editors responsible for this story: Ben Sills at bsills@bloomberg.net, ;Giles Turner at gturner35@bloomberg.net, Andrew PollackFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Qualcomm Wins EU Connected Car Battle, 5G Standard on the Way
    Zacks15 days ago

    Qualcomm Wins EU Connected Car Battle, 5G Standard on the Way

    Qualcomm (QCOM), Deutsche Telekom and BMW win an enduring legal tussle over the use of 5G technology in future connected cars across European Union member states.

  • Bloomberg16 days ago

    Qualcomm, BMW Triumph in EU Fight Over Connected Car Rules

    (Bloomberg) -- Want the lowdown on European markets? In your inbox before the open, every day. Sign up here.Qualcomm Inc., BMW AG, and Deutsche Telekom AG clinched a victory Thursday after European Union member states scrapped new rules mandating WiFi technology as the basis for how future connected cars talk to each other.The ruling is victory for 5G technology as countries around the world prepare for the roll-out of ultra-fast 5G wireless networks, which will power everything from self-driving cars to smart factories.The legislation -- first proposed in March by the European Commission, the bloc’s executive -- aimed to govern how future connected and automated cars in Europe send information between vehicles and infrastructure, in order to communicate about dangerous situations, road works, traffic lights and more.The companies had been urging EU legislators to veto it out of concern it would force them to make additional investments to fit a soon-to-be outdated technology, saying WiFi offers poorer performance than cellular-based technology compatible with future 5G networks.“Member states sent today a strong signal to the commission that technology neutrality should prevail," said Maxime Flament, chief technology officer at the 5G Automotive Association, which includes Qualcomm and Daimler AG as members. "Only a level-playing field between existing technologies will allow safer, more efficient mobility on European roads."The decision by representatives of the EU’s member states, which still needs to be formally rubber-stamped by its ministers on Monday, forces the commission back to the drawing board to come up with a new proposal.In a statement, EU Transport Commissioner Violeta Bulc said she takes "good note" of the decision, stressing the need for an EU-wide cooperative intelligent transport system."We cannot miss this opportunity and lose valuable time to make our roads safer," Bulc said. "We will therefore continue to work together with member states to address their concerns and find a suitable way forward."Volkswagen AG, General Motors Co., and Volvo Group have been proponents of the draft rules favoring WiFi systems, arguing that the industry needs clarity on what systems to use as soon as possible, and that it currently is the only proven technology.(Adds comments from 5GAA, European Commission.)To contact the reporter on this story: Natalia Drozdiak in Brussels at ndrozdiak1@bloomberg.netTo contact the editors responsible for this story: Giles Turner at gturner35@bloomberg.net, Nate LanxonFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • T-Mobile on Cusp of Justice Department Approval for Sprint
    Bloomberg17 days ago

    T-Mobile on Cusp of Justice Department Approval for Sprint

    (Bloomberg) -- T-Mobile U.S. Inc. is on the cusp of securing U.S. Justice Department approval for its $26.5 billion merger with Sprint Corp., after establishing the general outlines of asset sales to Dish Network Corp., according to people familiar with the matter.The Justice Department is hammering out final issues with T-Mobile on an agreement aimed at ensuring Dish can become a strong fourth competitor in the U.S. wireless market, said the people, who asked to not be identified because the matter isn’t public. While the sticking points aren’t insurmountable, the Justice Department has yet to bless the arrangement to allow Sprint’s acquisition to proceed.T-Mobile is trying to offer just enough concessions to gain approval but not so many that it creates a formidable rival while the Justice Department is aiming to maximize competition, the people said.Sprint and Dish shares both jumped on Bloomberg’s report. Sprint was up 1.7% to $7 at 12:35 p.m. in New York, while Dish climbed 2.3% to $40.07. T-Mobile climbed less than 1% to $75.94.T-Mobile and Sprint have agreed to sell to Dish some airwaves and Sprint’s pay-as-you-go brands, including Boost, Virgin Mobile and Sprint Prepaid, the people said. Dish would also get a six-to-seven-year wholesale agreement allowing it to sell T-Mobile wireless service under the Dish brand. The package would also include a three-year service agreement from T-Mobile to provide operational support as prepaid customers shift to Dish, according to one of the people.The companies are expected to hash out the unresolved issues around network sharing within a few days, setting them up for a possible decision from the Justice Department as early as next week, they said.CNBC first reported the details of the wholesale agreement as well as potential timing of the Justice Department’s decision.Representatives for T-Mobile, its parent company, Deutsche Telekom AG and the Justice Department declined to comment. A representative for Sprint didn’t have an immediate response to a request for comment.T-Mobile agreed to buy Sprint in April 2018, pitching the transaction as a way to advance the introduction of the next generation of wireless technology known as 5G, a priority of President Donald Trump.Regulatory ConcernsThe companies have already won the support of the Federal Communications Commission, in part by promising to deploy a 5G network that would cover 99% of the U.S. population within six years.They still have to win over Justice Department antitrust chief Makan Delrahim, who wants the No. 3 and No. 4 wireless carriers to shed enough assets to lay the groundwork for a new fourth competitor.Approval from the Justice Department could give the carriers a boost as they contend with a lawsuit filed by a group of state attorneys general who say the deal should be blocked because it will hinder competition and raise prices.Ergen’s AmbitionsThe concessions would be a boon for Charlie Ergen, the billionaire chairman of Dish. Long aware of the inevitable decline of satellite television, he has spent billions of dollars in government auctions to amass wireless airwaves.Gaining a wireless business and some airwaves would bring him closer to building a state-of-the-art network that can send video and other content without the need for cable or a satellite antenna.(Updates with trading in fourth paragraph.)\--With assistance from William Wilkes.To contact the reporters on this story: Nabila Ahmed in New York at nahmed54@bloomberg.net;David McLaughlin in Washington at dmclaughlin9@bloomberg.net;Scott Moritz in New York at smoritz6@bloomberg.netTo contact the editors responsible for this story: Nick Turner at nturner7@bloomberg.net, ;Liana Baker at lbaker75@bloomberg.net, Matthew Monks, Sara FordenFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Deutsche Telekom, Huawei customer, continues vendor review
    Reuters17 days ago

    Deutsche Telekom, Huawei customer, continues vendor review

    Deutsche Telekom said it was continuing a review of its vendor strategy as it announced the limited launch of 5G services in its home market, where it has partnered with China's Huawei Technologies in trial projects. Asked whether it was taking any action in response to U.S. calls on its allies to exclude Huawei from their networks, executives said they were continuing an ongoing vendor review and were in close contact with regulators and the government. "The most important criterion is network security - and the most important statement to make here is that we should not depend on one vendor," Deutsche Telekom's technology chief Claudia Nemat told a briefing.

  • Deutsche Telekom first to market in Germany with limited 5G rollout
    Reuters17 days ago

    Deutsche Telekom first to market in Germany with limited 5G rollout

    BERLIN/FRANKFURT (Reuters) - Deutsche Telekom stole a march on its competitors by announcing a limited rollout of 5G services in its German home market on Wednesday, targeting early adopters in cities with the high-speed mobile technology. Existing 5G trials will be opened up to public use in the German capital Berlin and in Bonn, where Deutsche Telekom is headquartered, with four more cities to follow this year. "Our goal now is to get 5G to the streets, to our customers, as quickly as possible," Deutsche Telekom's Germany head, Dirk Woessner, told a glitzy presentation in Berlin.

  • France's Orange raises $616 million with sale of its BT stake
    Reuters22 days ago

    France's Orange raises $616 million with sale of its BT stake

    French telecom giant Orange said it had sold its remaining 2.5% stake in BT, raising net proceeds of 486 million pounds ($616 million) as the former state monopoly faces a battle for market share in France. BT bought 41 million shares in the private placement of France Telecom's 248 million shares, a stake which was worth about 493 million pounds at Thursday's market price. Shares in BT were 2% down at 0720 GMT on Friday, while Orange was almost unchanged following the Thursday placement, on which Citigroup Global Markets was the sole bookrunner.

  • Aggressive Dealmaking Drives Europe's Most Expensive Stock
    Bloomberg24 days ago

    Aggressive Dealmaking Drives Europe's Most Expensive Stock

    (Bloomberg) -- Combining two badly performing industries usually doesn’t make them any better. Yet that’s what’s underpinning Europe’s most expensive stock.Spain’s Cellnex Telecom SA has become the highest-valued stock on the regional benchmark by serving as a landlord to the ailing telecom industry. While real estate and telecom are among the worst performers on the Stoxx 600 Index this year, Cellnex has soared after snapping up towers from carriers eager to convert their assets to cash, helping them keep up with network investments.“They are in a very sweet spot,” Neil Campling, an analyst at Mirabaud, said by phone. “The only worry at the moment for me is that the stock has moved an awful long way in a very, very short space of time.”The tower company model is fairly new to Europe, in contrast with the U.S., where American Tower Corp. and Crown Castle International Corp. began buying communication sites in the mid-1990s. Since its initial public offering in 2015, Cellnex has seized the relatively open field with aggressive dealmaking, spending 2.7 billion euros ($3.1 billion) just last month on more than 10,000 towers in Italy, France and Switzerland.The company looks set to continue its acquisition spree -- it announced on Tuesday the issuance of as much as 850 million euros in a nine-year convertible bond to fund purchases. The company has increased the number of network infrastructure sites in its portfolio by six-fold to about 45,000 in the past 4.5 years, including ones it has agreements on building for clients.Cellnex has gained nearly 60% in the first half, taking this year’s estimated price-to-earnings ratio to an eye-watering 131, according to data compiled by Bloomberg. That’s beyond such high-growth companies as the Dutch payments prodigy Adyen NA, or computer-games maker CD Projekt SA, which is about to publish its most-hyped title ever. Cellnex declined to comment on the valuation.While Cellnex’s expected revenue growth is much slower than the other names at the top, the surveyed 12 analysts estimate its earnings per share to nearly double from 2019 to 2021. Tower stocks have showed up on investors’ radar thanks to their stable cash flows and good visibility: smaller Italian peer Inwit SpA has also had a good year with a 43% gain so far. Tower contracts are usually signed for a decade or two.“There is a premium being paid for corporates that offer visibility,’’ Guy Peddy, an analyst at Macquarie, said by phone. “Cellnex is the only clear, European, free-from-ownership-issues, tower-focused operator.”Cellnex’s biggest shareholder is Italy’s Benetton family, which owns about 30% of the stock via its investment company Edizione. The family is said to be backing former Telecom Italia SpA head Franco Bernabe to replace Marco Patuano as chairman, Bloomberg reported Monday, citing people familiar with the matter.During the stellar run of the second quarter, Cellnex shares have mostly traded above the average price target, leaving analysts to play catch-up. The gap became the widest ever this week at 3 euros and currently implies a 4.8% downside to the stock, according to 27 estimates in a Bloomberg survey.In Europe, the share of telecommunications infrastructure held by independent tower companies is low compared with other regions, according to an April report by accounting and consultancy firm EY and the European Wireless Infrastructure Association (EWIA). The share of independent tower firms was a mere 17% in 2017, compared with 67% in North America and 42% in the Caribbean and Latin America. Operators could free up 28 billion euros if that share grew to 50%, the report estimates.Race to BuyOne risk to Cellnex’s tower campaign across Europe is competition for assets. The region’s emerging tower business is “not a one-horse race,” analysts at Kempen warned in a note last month, saying that Cellnex losing out on deals could lead to investor disappointment. In 2016, American Towers teamed up with Dutch pension fund PGGM Fondsenbeheer BV, beating Cellnex to win Antin Infrastructure Partners’ French phone towers.While American Towers has been more focused on emerging markets since, there’s a possibility that a private equity firm such as KKR & Co. Inc. would join the party, Giles Thorne, an analyst at Jefferies said in a note on Tuesday, keeping his buy rating and raising his price target by more than 50%.“The one candidate that has the assets and scope on paper to replicate Cellnex’s march across Europe is KKR,” Thorne said. “Its actions suggest it doesn’t see the regional synergy case for cross-border M&A. This may yet change.”Additionally, some telecom carriers see network quality as an important competitive advantage and are reluctant to relinquish control of their top sites. Tim Hoettges, chief executive officer of Deutsche Telekom AG -- which is not a client of Cellnex -- has spoken of “golden sites” as a category of differentiating network infrastructure locations the company wouldn’t be willing to share.Yet overall, tower companies are well placed to benefit from industry-specific drivers, including increased data consumption, Josh Sambrook-Smith, a thematic equity analyst at Sarasin & Partners, said by phone.“You have all the other super exciting, long-term trends,” said Sambrook-Smith. “This is just a relatively safe way to play it.”(Updates share prices from the 6th paragraph, chart)To contact the reporter on this story: Kit Rees in London at krees1@bloomberg.netTo contact the editors responsible for this story: Beth Mellor at bmellor@bloomberg.net, Kasper Viita, Celeste PerriFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • Reuters25 days ago

    Deutsche Telekom wins SK Telecom backing for venture arm; 5G JV agreed

    Deutsche Telekom's venture capital arm said on Tuesday it was closing its second fund to new money after raising $350 million to invest in software service companies that are powering digital transformation. Corporate sponsors SK Telecom of Korea and German optics company Zeiss have joined Deutsche Telekom, HarbourVest, Neuberger Bermann and others in backing the fund, Deutsche Telekom Capital Partners (DTCP) said. SK Telecom's $30 million investment is part of a wider agreement with Deutsche Telekom to set up a joint venture to develop technologies and services for next-generation 5G mobile networks, the Korean company said separately.

  • Reuters25 days ago

    UPDATE 1-Deutsche Telekom wins SK Telecom backing for venture arm; 5G JV agreed

    Deutsche Telekom's venture capital arm said on Tuesday it was closing its second fund to new money after raising $350 million to invest in software service companies that are powering digital transformation. Corporate sponsors SK Telecom of Korea and German optics company Zeiss have joined Deutsche Telekom, HarbourVest, Neuberger Bermann and others in backing the fund, Deutsche Telekom Capital Partners (DTCP) said.

  • Deutsche Telekom wins SK Telecom backing for venture arm; 5G joint venture agreed
    Reuters25 days ago

    Deutsche Telekom wins SK Telecom backing for venture arm; 5G joint venture agreed

    Deutsche Telekom's venture capital arm said on Tuesday it was closing its second fund to new money after raising $350 million to invest in software service companies that are powering digital transformation. Corporate sponsors SK Telecom of Korea and German optics company Zeiss have joined Deutsche Telekom, HarbourVest, Neuberger Bermann and others in backing the fund, Deutsche Telekom Capital Partners (DTCP) said. SK Telecom's $30 million investment is part of a wider agreement with Deutsche Telekom to set up a joint venture to develop technologies and services for next-generation 5G mobile networks, the Korean company said separately.

  • Amazon Lives on the Edge, and Telecoms Should Tremble
    Bloomberg29 days ago

    Amazon Lives on the Edge, and Telecoms Should Tremble

    (Bloomberg Opinion) -- 5G networks will allow vast gobs of data to be transmitted at great speeds. And more data usually means more money for mobile carriers like Deutsche Telekom AG and AT&T Inc. But there’s a hitch. Cloud giants such as Amazon.com Inc., Alphabet Inc. and Microsoft Corp. are lurking.The new tech enables ever more computational decision-making to be carried out by powerful processors sitting in the cloud. But when even a few milliseconds of lag can be a problem – as might be the case with high-frequency trading or connected factories – it’s worth trying to slash the time it takes to reach a cloud server.That’s why the cloud giants are pushing what’s known as edge computing: where cloud functions run on servers that are physically closer to the end user, thereby cutting the distance to a computer making a given decision. They’re at the “edge” of the network. It’s a feature of the distributed cloud, where different functions are distributed across different parts of a network.For telecoms firms that could be a problem. They’re terrified of spending hundreds of billions of dollars on upgrading their networks, only to become the providers of dumb pipes exploited by technology behemoths, and miss the most profitable opportunities the investments could generate. They don’t want a repeat of WhatsApp, whose free messaging platform gobbled up carriers’ SMS revenues.The main cloud providers – Amazon Web Services, Microsoft Azure, Google Cloud and Alibaba Group Holding Ltd.  – have a headstart when it comes to exploiting these opportunities. They have huge customer bases and developer ecosystems, in addition to their existing hordes of servers. In short, they have scale.It would therefore be foolish for a telco to try to build a cloud offering to rival that scale, according to Nick McQuire, head of enterprise research at CCS Insight. They seem to recognize this, and are instead trying to ensure they’re the gatekeepers for their customers’ relationships with the cloud operators. Unfortunately for the network firms, the lock they have on those relationships can be tenuous.There are different ways carriers can try to control them. Just this month, Spain’s Telefonica SA announced it would sell Google Cloud solutions globally. Alone, that’s unlikely to generate much profit. But by inserting themselves into the transaction, they hope to be in prime position to offer additional lucrative services that run on a third party’s cloud. And when it comes to small- and medium-sized enterprises, network firms’ extensive local teams can offer comprehensive solutions. It’s less scalable than what the cloud operators do, but it’s still an opportunity.Others such as France’s Orange SA think that owning the cybersecurity layer is the best way to manage the process. That encryption key ensures they control enterprise customers’ cloud access, also making it easier to sell value-added services. Both approaches are a gamble. Cloud providers have their own cybersecurity solutions, for one. Convincing customers that a carrier can do it better might be tough.Increasingly, the operators have little choice. The likes of Amazon and Google are proactive in creating demand for their products. Their customers then turn to their telecom providers and request the cloud giants’ services. That all but forces them to play along.Consider Google’s new Netflix for games, Stadia. For a subscription fee, starting in November users can access a bevy of titles running on cloud servers rather than their own computers. They’ll be able to play on a computer more than twice as powerful as Sony Corp.’s Playstation 4 console using just a cellphone, which becomes little more than a screen and a controller. And since the data is never exposed to the public internet, carriers’ importance is diminished.A carrier who can boast about Stadia’s performance on its network might use it as a tool to win customers. The best gaming experience will have no perceptible lag, so the closer Stadia’s servers are to the user, the better.Amazon and Microsoft’s gambits, which are called AWS Outposts and Azure Stack respectively, have similar placement goals. While not yet widely available, they comprise server boxes which sit on customers’ premises – factories, oil rigs or offices – and provide a hybrid of local and cloud computing.The race to the edge really does risk turning the network operators into providers of dumb pipes: enterprise customers’ data enter the network via AWS Outpost at one end, and travel to and from centralized servers without being exposed to the public internet, remaining on a private network. It raises carriers’ risk of disintermediation – that they get all but shut out of the most lucrative parts of the cloud business. Stadia is unlikely to eat the world any time soon, and Google is behind rivals Azure and AWS in many enterprise applications, which is where the real money lies. We’re in the very early days of this struggle.But edge computing could turn into something of a Trojan horse for other cloud services. Carriers have a real challenge on their hands.To contact the author of this story: Alex Webb at awebb25@bloomberg.netTo contact the editor responsible for this story: Jennifer Ryan at jryan13@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.

  • Huawei’s Troubles Are a Big Opportunity for Ericsson and Nokia
    Bloomberglast month

    Huawei’s Troubles Are a Big Opportunity for Ericsson and Nokia

    (Bloomberg) -- Over the past two decades, China’s Huawei Technologies Co. has come to dominate the global telecom equipment market, winning contracts with a mix of sophisticated technology and attractive prices. Its rise squeezed Europe’s Nokia Oyj and Ericsson AB, which responded by cutting jobs and making acquisitions. Now, with Huawei at the center of a U.S.-China trade war, the tide is turning.Nokia and Ericsson—fierce rivals themselves—have recently wrested notable long-term deals from Huawei to build 5G wireless networks, to enable everything from autonomous cars to robot surgery. Analysts say more could come their way as Huawei grapples with a U.S. export ban and restrictions from other governments concerned that its equipment could enable Chinese espionage.“Huawei will, for the foreseeable future, face a broader cloud of suspicion,” said John Butler, an analyst at Bloomberg Intelligence in New York. “Nokia and Ericsson are well positioned to benefit.”In May, the European companies both won 5G contracts from SoftBank Group Corp.’s Japanese telecom unit, replacing Huawei and Chinese peer ZTE Corp. Ericsson signed a similar pact in March with Denmark’s biggest phone company, TDC A/S, which had worked with Huawei since 2013 to modernize and manage its network.Other carriers, expecting government curbs on Huawei, have started removing its equipment from sensitive parts of their systems. BT Group Plc is taking Huawei out of its network core, and Vodafone Group Plc has suspended core equipment purchases from Huawei for its European networks. Deutsche Telekom AG, which has Huawei throughout its 4G system, is re-evaluating its purchasing strategy.Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providersAs dozens of phone companies—including those in Canada, Germany and France—plan to choose 5G suppliers in the coming months, Cisco Systems Inc. and Samsung Electronics Co. are also vying for deals. But the key beneficiaries of Huawei’s difficulties are likely to be the two Europeans, which compete directly with the Chinese company in supplying radio-access network equipment.Since last year, the Trump administration has pushed allies to bar Huawei from 5G, citing risks about state spying—allegations the company has denied. The move in May to block Huawei’s access to U.S. suppliers escalated the campaign. The company’s founder, Ren Zhengfei, now predicts the U.S. sanctions will cut its revenue by $30 billion over the coming two years.Outside the U.S., security concerns have led Australia, Japan and Taiwan to bar Huawei from 5G systems. The Chinese company also risks losing meaningful work in Europe and emerging markets where countries could follow with their own limits, according to Bloomberg Intelligence.Publicly, executives from Nokia and Ericsson have been careful not to come off as critical of Huawei. Both manufacture in China and sell gear to Chinese phone carriers, and Nokia has a big research and development presence there. Nokia says it has already been forced to shift some of its supply chain away from China to reduce the impact of tariffs imposed by the Trump administration.QuicktakeHow Huawei Became a Target for GovernmentsInstead of piling on Huawei, the European carriers have trumpeted their 5G successes, each using slightly different metrics. Ericsson claims it has the most publicly announced 5G contracts—21—while Nokia says it has raked in more commercial 5G deals than any other vendor (42). Huawei says it has signed 46 5G contracts. A spokesman for Huawei declined to comment further about its position relative to rivals.Ericsson is “first with 5G,” after building high-speed networks for companies such as AT&T Inc., Swisscom AG in Switzerland and Australia’s Telstra Corp., said Chief Technology Officer Erik Ekudden. “You see that in some markets that we are attracting more customers.”Nokia is winning 5G deals “quite handsomely,” Chief Executive Officer Rajeev Suri told Bloomberg TV on June 10.While Suri said more carriers are likely to swap out Huawei gear in countries that have announced restrictions, the situation is less clear in Europe. “We don’t know yet the impact of specific operator plans,” he said in an interview. “We also don’t know where this geopolitical thing will end up.”Nokia and Ericsson are Europe’s final survivors of a merciless winnowing of more than a half-dozen telecom equipment providers. Bloated costs, a cyclical marketplace, cash-strapped customers, and the relentless rise of Huawei—aided by access to generous Chinese state financing—helped push the likes of Canada’s Nortel Networks Corp. and Germany’s Siemens AG out of the industry.Nokia paid some $2 billion in 2013 to buy Siemens out of a joint venture established to compete against Ericsson and Huawei. Then in 2015, it spent another almost $18 billion acquiring Alcatel-Lucent to broaden its product offering after pushing through more than 25,000 job cuts in the preceding three years. Still, Huawei’s share of the $33 billion of sales in the global mobile infrastructure market surged to 31% in 2018 from 13% in 2010, IHS Markit data show.Huawei, despite its troubles, remains a potent rival. Many phone companies in Europe deem its base stations, switches and routers technologically superior. Fully excluding Huawei and ZTE from 5G would raise radio-access network costs for European phone companies by 40%, or 55 billion euros ($62 billion), the GSMA industry group predicts in an unpublished report seen by Bloomberg. Nokia and Ericsson would have to almost double production to absorb Huawei and ZTE’s business in Europe and could struggle to meet demand, the GSMA report says.Quicktake5G and EspionageBengt Nordstrom, CEO of telecom consultancy Northstream AB, says the situation is perilous for everyone in the industry, as vendors’ budgets could be hit if Huawei faces greater restrictions. “Many component suppliers are already in a tough situation,” Nordstrom said. “They need to spend a lot of money on research, and that means they need access to the entire global market.”For carriers, swapping vendors isn’t as simple as flipping a switch. It takes about two years to plan and implement such a technology shift and install the new equipment, Nordstrom said.Both Nokia and Ericsson are working to make it easier for carriers to switch. Nokia has developed what it calls a “thin layer” of its 4G technology to connect to a new 5G system, allowing a carrier to avoid a wholesale swap of another supplier’s equipment. Ericsson also has a solution to allow a carrier to swap out only a portion of existing infrastructure, and says it can make some areas work side-by-side with Ericsson’s 5G gear.Nokia and Ericsson can agree on one thing: Claims of Huawei’s technological superiority are overblown. They note that they’re involved in the latest networks in the U.S., where carriers are rolling out 5G faster than the Europeans.“We compete quite favorably with Huawei,” Suri said, “with or without the current security concerns.”(Updates to add Nokia and Ericsson production estimate in sixth-last paragraph. An earlier version of the story corrected the ninth paragraph to reflect that Telstra Corp. is an Australian company.)\--With assistance from Caroline Hyde, Kati Pohjanpalo and Angelina Rascouet.To contact the authors of this story: Stefan Nicola in Berlin at snicola2@bloomberg.netNiclas Rolander in Stockholm at nrolander@bloomberg.netTo contact the editor responsible for this story: Rebecca Penty at rpenty@bloomberg.net, David RocksFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.

  • T-Mobile Doesn't Need Sprint This Bad
    Bloomberglast month

    T-Mobile Doesn't Need Sprint This Bad

    (Bloomberg Opinion) -- T-Mobile US Inc. may have found a way to salvage its takeover of Sprint Corp., but it comes at a cost, and leaves one to wonder whether its single-minded focus on sealing the deal is clouding its judgment. It certainly wouldn’t be the first company to let that happen in M&A. T-Mobile is in talks to sell assets, including wireless spectrum and Sprint’s Boost Mobile prepaid brand, to satellite-TV provider and known spectrum-hoarder Dish Network Corp. for at least $6 billion, Bloomberg News reported Tuesday, citing people familiar with the matter. This is being done in an effort to appease the U.S. Department of Justice, which is concerned about the impact that T-Mobile’s $59 billion acquisition of Sprint will have on consumers’ wallets.The DOJ is said to want T-Mobile to lay the foundation for the emergence of a viable No. 4 competitor in the U.S. wireless market to help fill the hole that buying Sprint would leave behind. Dish could, in theory, be that new fourth competitor, and that’s likely the motivation behind the reported arrangement. But given the strategic needs of all involved, the logic of this workaround is puzzling. Let’s start with Dish. While it doesn’t have a wireless network, it already owns lots of mid-band spectrum licenses. These valuable assets have underpinned the company’s $18 billion market capitalization, even as its core satellite-TV business has lost droves of subscribers. Charlie Ergen, the billionaire chairman of Dish, has vaguely laid out plans for using the company’s spectrum to build a nationwide network to service the “internet of things,” ostensibly a step toward later launching a 5G network. Despite what he says, many investors and analysts have expected (or hoped) to see Ergen just sell the spectrum, rather than spending years entangled in a costly network build-out and as a latecomer to the 5G race at that. In any case, the last thing Dish would seem to need is more spectrum. Taking on Boost’s prepaid customers also wouldn’t seem to give Dish much of a leg up in the wireless space, and their bases don’t really overlap. What Dish does need is a partner with the ability to help build its network. If the Sprint deal were to collapse, T-Mobile could be said partner. (After all, Dish has been one of the biggest opponents of the T-Mobile-Sprint merger, at least until now it seems.) Or what about Amazon?A couple of years ago, Ergen reportedly discussed a partnership of sorts with Amazon.com Inc. – and that has to make T-Mobile a little nervous. It’s hard to see how buying Sprint and potentially providing an entry point for Amazon is a better outcome for T-Mobile than the status quo of competing with Sprint, a far weaker rival. Gaining Sprint’s spectrum is also one of the biggest reasons for doing the merger in the first place, so it’s surprising that T-Mobile is willing to divest some of it. And a forced seller isn’t known to get the best price. This is why I wrote last week that it wouldn’t be a surprise if at this point T-Mobile decided to walk away from the deal, on account of disagreeable concessions and a lawsuit by a group of state attorneys general seeking to block the transaction. It may not be a stretch to think that may have been part of the DOJ’s angle in pushing for such divestitures. But if the DOJ and T-Mobile can come to this simple of an agreement – sell spectrum and Boost – then I’m left with two questions: Were regulators really not taking a hard line? Or are executives at T-Mobile and its German parent company, Deutsche Telekom AG, so resolved to get the merger done that they’ll do it even if the merits are spoiled in the process? Craig Moffett, an analyst at MoffettNathanson LLC, put it this way in a note to clients on Monday: “At the end of the day, a bad deal is worse than no deal at all.” That’s true – unless you’re Sprint, in which case no deal is the worst outcome. But T-Mobile shouldn’t feel that same desperation.To contact the author of this story: Tara Lachapelle at tlachapelle@bloomberg.netTo contact the editor responsible for this story: Beth Williams at bewilliams@bloomberg.netThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tara Lachapelle is a Bloomberg Opinion columnist covering deals, Berkshire Hathaway Inc., media and telecommunications. She previously wrote an M&A column for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.