T-Mobile parent Deutsche Telekom has confirmed recent speculation that it is to integrate its domestic mobile and fixed businesses in order to pursue a more regional focus. “The distinction between our fixed-line and mobile operations will be abolished. We intend to bundle product development, IT and technology across Europe in future,” said CEO René Obermann, adding that the reorganisation would not lead to staff reductions. The firm said that its German mobile and fixed-network business will be consolidated in one Board of Management department, while products and innovation, and IT and technology will be managed at a pan-European level. Procurement is to be done on a global basis. A new project manager has been appointed to implement the new structure. According to previous reports, T-Mobile’s international mobile businesses will remain unchanged.
Meanwhile, Deutsche Telekom reported a EUR730 million loss for fourth-quarter 2008, compared to a loss of EUR750 million a year ago. The loss was attributed to expenses relating to its acquisition of a 25 percent stake in the Greek operator, OTE. Adjusted EBITDA for 2008 increased 0.7 percent year-on-year to EUR19.5 billion, exceeding the original guidance of around EUR19.3 billion. Adjusted net profit rose by 14 percent to EUR3.4 billion. Its Mobile Communications business recorded revenue growth of 2.4 percent to EUR35.6 billion in 2008. It noted that it had maintained its leadership in the German mobile market and that T-Mobile USA continued to post double-digit growth rates. However, it said that T-Mobile UK had been negatively affected by fierce competition.