Deutsche Telekom set to add fixed to mobile assets - Mobile World Live

Deutsche Telekom set to add fixed to mobile assets

23 MAY 2011

Deutsche Telekom (DT) is mulling the acquisition of fixed-line assets in European markets where it already has mobile operations, in order to reduce churn, Bloomberg reports. According to Roland Mahler, who heads up DT’s European operations outside of Germany, “fixed-mobile convergence is a precondition to be able to leverage the market and certainly to serve the customer best by offering fixed, broadband, TV or IPTV.” By bundling fixed and mobile services, operators can create a more valuable relationship with customers, while also reducing the likelihood of churn. The report notes that with DT in the process of offloading its US arm, the company is now squarely focused on Europe for growth.

Markets where the company may consider fixed acquisitions include Poland, the Netherlands and Austria.  In Poland, the company is in the process of introducing its T-Mobile brand, having gained sole ownership of operator PTC earlier this year. In this market, it competes with France Telecom’s TPSA, which also offers both fixed and mobile services.  While Deutsche Telekom is also in talks to acquire the 49 percent stake it does not own in integrated operator Slovak Telekom, Bloomberg said that the company is “a little bit more hesitant” to up its stake in Greek’s OTE, due to ongoing economic weakness in the country and a lack of government cooperation.

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