Deutsche Telekom plans cost cuts, network investment - Mobile World Live

Deutsche Telekom plans cost cuts, network investment

24 MAY 2018

Deutsche Telekom vowed to book growth across all its major financial indicators in the years to 2021, cut €1.5 billion of annual overheads and embark on an investment programme to improve coverage across its European markets.

At a Capital Markets event, the operator group said savings would be made through increased automation and digitisation across its European footprint, with half coming from cuts in staff costs.

Other savings include removing legacy systems and reducing its real estate footprint.

The measures, it said, would save €1.5 billion in indirect annual costs in its European operation by 2021. It added the majority of “staff reduction measures” had already been implemented in the form of schemes including a “phased retirement” programme.

While cutting overheads, the operator said it would boost investments in mobile infrastructure to close coverage gaps in its LTE networks ahead of 5G rollout.

In Germany it intends to increase its number of base stations to 36,000 by 2021 – an increase of 11,000 on the number operational at the end of 2017. It will also pump further investment into small cell deployment in urban centres.

Following the upgrades, Deutsche Telekom expects to increase LTE coverage in Germany to 98 per cent of the population during 2019 from 94 per cent at the end of 2017.

In the rest of its European footprint, the operator plans to raise base station numbers from 41,000 at end-2017 to 47,000 by 2021 and increase small cell deployment.

Growth
The operator group also reiterated long-standing targets of increased revenue of between 1 per cent and 2 per cent annually to 2021, and increasing cash flow.

Deutsche Telekom CEO Timotheus Hoettges said: “Over the next few years, we will continue to exhibit a growth profile that is unparalleled in our industry.” He added the company would focus on improving customer experience and target increased sales in converged offers.

In addition to a boost in its mobile coverage, the company aims to grow its fibre footprint in Germany, along with its cloud computing, IoT and security play through its T-Systems unit.

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Chris Donkin

Chris joined the Mobile World Live team in November 2016 having previously worked at a number of UK media outlets including Trinity Mirror, The Press Association and UK telecoms publication Mobile News. After spending 10 years in journalism, he moved...

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