Deutsche Telekom’s decision to merge its fixed-line and mobile divisions in Germany could boost its mobile revenues by hundreds of millions of euros, a leading executive at the firm said yesterday, reports Reuters. According to Niek Jan van Damme, head of sales and services at the German telecoms giant, some 29 million households in Germany are Deutsche Telekom customers and 58 percent of those have only fixed-line connections. “If we can tap into at least 1 percent and add wireless that could raise revenue by a three-digit million-euro sum,” he said without adding details. Deutsche Telekom – which owns the T-Mobile brand – announced in February that it is to integrate its domestic mobile and fixed businesses in order to pursue a more regional focus, noting at the time that “the distinction between our fixed-line and mobile operations will be abolished.” Van Damme said that the benefits from the reorganisation will start to kick in next year.
T-Mobile Germany’s domestic rivals have been pursuing similar strategies. In April, Telefonica O2 announced it is to merge its mobile and fixed-line businesses in Germany in a bid to target the converged services market. As well as bundling its wholesale, business and consumer activities into a single business unit, the move will merge O2 Germany’s mobile network and Telefonica Deutschland’s fixed-line network into what it calls a single network area. Meanwhile, Telecompaper reports this week that Vodafone Germany has announced a single, new branding strategy as it completes the integration of its Arcor fixed-line unit. A single, common brand will now be presented to customers and partners, and will be supported by a new marketing campaign.