|Bid||15.22 x 910400|
|Ask||15.22 x 288200|
|Day's range||15.02 - 15.27|
|52-week range||10.41 - 16.75|
|Beta (5Y monthly)||0.59|
|PE ratio (TTM)||18.57|
|Earnings date||13 Aug 2020|
|Forward dividend & yield||0.60 (4.00%)|
|Ex-dividend date||22 Jun 2020|
|1y target est||17.40|
The Deutsche Telekom Ag (ETR:DTE) share price has risen by 5.90% over the past month and it’s currently trading at 14.175. For investors considering whether to...
(Bloomberg) -- Aircall, which makes cloud-based software that can help businesses create virtual call centers, said it raised $65 million in its latest funding round as a surge in remote working makes its products more popular.The startup, whose product can be used to add analysis, routing, contact sharing and customer management functions to voice calls, will use the funds to add about 150 employees and expand geographically, Chief Operating Officer Jonathan Anguelov said. The Paris-based company is now valued at about $500 million.Customers have needed to find ways to maintain customer service call centers while employees work remotely, leading to a surge in users, he said. New customers include food delivery startup DoorDash Inc. The company is also adding features to improve sales and service, such as a feature that analyzes the emotion in customers’ voices, he said.“Covid indirectly created a big move toward the cloud,” Anguelov said in an interview. “Decisions were made fast during that period.”Remote working startups have experienced a boom in funding. The valuation of Monday.com, an Israeli startup that makes software to help employees work remotely, jumped to $2.7 billion, according to people familiar with the matter. Deel, a payroll company for remote workers, recently raised $14 million.Deutsche Telekom AG’s venture capital arm led Aircall’s funding round, which also included a new investment from Swisscom AG and fresh funds from existing investors Balderton Capital and Draper Esprit. It brings the company’s total funding to $100 million.Subscription-based Aircall, which gets about one-third of its business from North America, will seek to expand in Europe and North America this year and in Asia Pacific toward the end of 2020, Anguelov said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Peter Chou, the man who led HTC Corp. through its most prosperous years as an Android phone maker, is returning to consumer electronics with the unveiling of a new virtual reality headset, platform and company.Called XRSpace, the project has been in the works for three years and its centerpiece is a mobile VR headset equipped with fifth-generation wireless networking and over three hours of battery life. Partnering with Deutsche Telekom AG and Chunghwa Telecom Co., XRSpace is also building the VR platform on which services, games and social activities can be accessed and experienced.Priced at $599, the XRSpace headset has a high cost of entry, but the company envisions bundling it with carriers’ 5G service packages or in other forms for educational institutions. After its home market of Taiwan, it’ll look to expand to the U.S. and Europe, Chou said in an interview with Bloomberg News, with the rest of Asia to follow.Chou’s headset is the latest in a long line of devices like Facebook Inc.’s Oculus Rift, which have tried to bring VR into the mainstream without much success so far. The XRSpace gadget is still months away from store shelves and few have had a chance to test or even view it. But the entrepreneur says he’s already signed up 40 to 50 apps for his VR platform.XRSpace’s ambition is to come up with uses for the 5G networks that carriers are rolling out globally.“5G is coming. It feels like 2002, when we first had 2.5G data networks and the first smartphones like the O2 XDA started coming out,” Chou said. “Today, the smartphone experience of togetherness is primitive” because it fails to capture the full range of human expression. XRSpace’s headset uses cameras to pick up hand gestures and track the wearer’s motions, and it creates a lifelike avatar from a selfie. Chou promised it’ll let users perform real-world actions like shaking hands or shooting a basketball in a natural way.The XRSpace founder quit HTC after the popularity of its smartphones waned, but now he’s hoping VR will help a comeback.To build its virtual world, XRSpace has been designing public and private spaces for users to inhabit and even creating virtual stadiums where sports fans can gather together for a shared viewing of a ballgame. The coronavirus outbreak has triggered an uptick in interest in shared remote experiences, as signaled by rapper Travis Scott’s virtual concert in the game Fortnite and Sony Corp.’s Chief Executive Officer Kenichiro Yoshida expressing interest in streaming live concerts to the company’s PlayStation VR headset.Read more: Fortnite, Rappers and the Billion-Dollar Pandemic Gaming BoomThe pandemic was initially an obstacle for XRSpace, whose launch had been planned for Mobile World Congress in Barcelona in February, one of the first global events to be canceled by the spread of the virus. Chou said that manufacturing was set back by roughly two months because of it, and the XRSpace headset is now expected to launch in the third quarter of this year, starting with Taiwan where the company has the most partnerships lined up.But the upside for XRSpace, according to Head of Content Kurt Liu, is that many more interested parties -- such as educational institutions asking about distance learning and collaboration tools -- have been reaching out. Liu’s team has been working with hundreds of developers since last year and already has more than 40 apps embedded in the platform, he said. Those include games as well as wellness and relaxation applications, for which the company has recruited health care experts with decades of experience.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- SoftBank Group Corp. is closing in on a deal to sell about $20 billion of its stock in T-Mobile US Inc., accelerating efforts to raise capital after record losses in its investment business, according to people familiar with the matter.The Tokyo-based company, which owns about 25% of T-Mobile US, plans to sell a slice of that stake to Deutsche Telekom AG so the German parent can own a majority and consolidate the unit’s financial results, said the people, asking not to be identified because the matter is private. SoftBank would then sell shares in a secondary offering to other investors and retain a smaller stake itself, one of the people said. The deal could be announced this week, the person said.Talks are still ongoing and the deal could change or fall apart. T-Mobile US’s market value is about $126 billion, while SoftBank’s stake is about $31 billion.SoftBank founder Masayoshi Son landed the stake in T-Mobile US just this year, after U.S. regulators approved the sale of his Sprint Corp. to its wireless rival. He is in the midst of selling 4.5 trillion yen ($42 billion) of assets to raise cash so he can buy back shares and pay down debt. Among his other prime assets are Chinese e-commerce giant Alibaba Group Holding Ltd. and SoftBank Corp., the Japanese wireless business.“If SoftBank Group can renegotiate that sale, it will reduce pressure on SoftBank Group to sell its stakes in Alibaba or SoftBank Corp.,” Atul Goyal, senior analyst at Jefferies Group, wrote in a report.The company already raised $11.5 billion from contracts to sell shares in Alibaba, its most valuable holding. Son said at an earnings briefing on Monday that the sale is the first tranche in a broader unwinding of assets.Dow Jones, which reported the T-Mobile US sale earlier, said Morgan Stanley and Goldman Sachs Group Inc. are working to draw investors for the deal.Long-term ControlAny potential sale could tip Deutsche Telekom’s stake in T-Mobile over 50%. The German carrier currently holds 43.6% and is already the controlling shareholder due to how voting rights were structured following the Sprint deal. A 7% stake in T-Mobile would be worth about $8.2 billion, according to New Street Research analyst James Ratzer.“Another buyer might be willing to pay a higher price than Deutsche Telekom, so going to 50% now would secure longer-term control,” Ratzer said in a note.T-Mobile completed its $26.5 billion takeover of Sprint on April 1, making it the second-largest mobile carrier in the U.S. based on the number of regular monthly subscribers. T-Mobile is the nation’s fastest-growing wireless company, and Deutsche Telekom’s largest source of revenue.On a Deutsche Telekom earnings call last week, Chief Executive Officer Tim Hoettges was asked if the company would be interested in buying a larger stake in T-Mobile from SoftBank.“It’s a great business to have, big attractive opportunities going forward -- we believe in the stock,” he said, adding that he could not “speculate on anything around these M&A talks.”Deutsche Telekom’s shares rose 1.5% in early trading on Tuesday.SoftBank and Deutsche Telekom are in the first months of a four-year lockup period that restricts the sale of T-Mobile shares. But the merger agreement doesn’t stop the companies from transferring stock between SoftBank and Deutsche Telekom. Even though Deutsche Telekom has a controlling stake in T-Mobile, it doesn’t have a majority stake. An outsider could purchase SoftBank’s shares when the lockup expires in 2024.SoftBank Group said on Monday that its Vision Fund lost 1.9 trillion yen in the most recent fiscal year, triggering the worst loss ever in the Japanese company’s 39-year history. SoftBank had to write down the valuations of companies like WeWork and Uber Technologies Inc. because of business missteps and the coronavirus fallout.The Japanese company also said on Monday it plans to spend up to 500 billion yen to buy back shares through next March, on top of an existing repurchase plan of the same size. That has helped SoftBank shares stabilize, rising more than 70% from their low in March.The stock fell about 2% in Tokyo on Tuesday, as Japan’s indexes rose.(Updated with additional context)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Ciena (CIEN) gets selected by the wholesale arm of Deutsche Telekom for the deployment of its WaveLogic 5 Extreme network across Europe for advanced connectivity solutions.
(Bloomberg Opinion) -- SoftBank Group Corp.’s flagship, $98.6 billion Vision Fund is almost tapped out. Its holdings of unicorn startups aren’t likely to deliver cash to investors anytime soon.Yet SoftBank needs liquidity, and there’s talk that the Saudi government’s Public Investment Fund may be looking to monetize its stake through a margin loan. (The PIF denied a Bloomberg News report that it has such plans). An answer to both problems would be to list shares in the Vision Fund itself, a topic that has been given scant regard as people focus on the underlying investments.Hear me out, though.The fund’s two biggest holdings right now are Chinese content-platform Bytedance Inc. and ride-hailing leader Didi Chuxing. There’s slim chance that either will have an initial public offering this year, and probably not in the U.S., where the mood toward Chinese companies has soured after the Luckin Coffee Inc. scandal. Too bad for them: All the dollars printed by Washington to tackle the Covid-19 economic crisis might mean there’s plenty of money sitting around waiting for a big new share sale. Of the 88 investments in the Vision Fund’s portfolio, 50 had a cut in valuation during the 12 months to March 31, and 19 were unchanged. SoftBank told investors Monday that its startups are facing varying degrees of impact from the pandemic, which means it’s probably not an opportune time to try to sell any individual company in public markets.But as a collective, the portfolio makes as good an asset as anything else SoftBank has on hand. It’s possible that SoftBank will be able to offload some of the T-Mobile US Inc. shares that replaced its stake in Sprint Corp. after the operators merged. According to the Wall Street Journal, T-Mobile’s parent, Deutsche Telekom AG, is considering a purchase. But there are various lockup clauses and share price incentives built into the deal that probably limit the size of any such transaction.I talked before about the need for SoftBank to sell down its $137 billion stake in Alibaba Group Holding Ltd. after it said that it would monetize as much as $41 billion in assets. Let’s be clear: “Monetizing” doesn’t necessarily mean selling. SoftBank’s strategy has largely been to take out loans backed by its assets, some of which are non-recourse.(1)There’s also British semiconductor maker Arm, which we already know is slated for an eventual IPO. The current state of SoftBank’s finances make it likely this listing will be fast-tracked.But these holdings — T-Mobile, Alibaba, Arm(2) — are SoftBank assets. Selling them doesn’t necessarily solve the Vision Fund’s cash needs. And they don’t much help the fund’s sugar daddy, the Saudi government. As my colleague David Fickling wrote recently, the net financial assets held by Saudi Arabia’s government have declined to just 0.1% of gross domestic product, from 50% in the four years through 2018. Being one of the world’s biggest oil producers helps only so much when a global pandemic grounds aircraft, sends economies into decline, and results in sliding crude prices. Even if the PIF denies plans to take out loans against its Vision Fund stake, the kingdom’s rulers will be keen that it raise cash any way possible. The Vision Fund itself needs money. It’s on the hook for at least $3 billion in preferred equity dividend payments every year, as well as the cash it needs just to operate, and in theory to service debt it’s already taken out. It has already put some of the money raised aside to pay those dividends, but that won't last forever. With the book value of its assets dropping more than $17 billion in the past year, the fund’s ability to keep borrowing to cover those requirements will diminish.There are bound to be investors who believe in founder Masayoshi Son’s long-term plan to build a stable of companies that will change the world and provide huge profits in the process. After all, many have already bought into SoftBank Group itself, which counts the Vision Fund as a key earnings driver (or drag).Given how illiquid the assets are, and the volatile nature of its earnings, a listing of the Vision Fund would certainly be seen as a bizarre move. But to Son and his acolytes, it may well be seen as visionary.(1) Non-recourse means that if the debt can't be paid, or other clauses are triggered, the creditor may take ownership of the pledged asset rather than forcing the debtor to pay up.(2) A portion of Arm shares are held by the Vision Fund, transferred from SoftBank as an in-kind payment to cover SB's obligations to the Fund.This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Tim Culpan is a Bloomberg Opinion columnist covering technology. He previously covered technology for Bloomberg News.For more articles like this, please visit us at bloomberg.com/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
SoftBank Group Corp <9984.T> is in talks to sell "a significant portion" of its T-Mobile US <TMUS.O> stake to controlling shareholder Deutsche Telekom AG <DTEGn.DE>, the Wall Street Journal reported on Monday, citing unidentified sources. A deal would see Deutsche Telekom's stake in the carrier, which merged with SoftBank's wireless unit Sprint last month, rise above 50%, the report said.
SoftBank Group Corp is in talks to sell "a significant portion" of its T-Mobile US stake to controlling shareholder Deutsche Telekom AG, the Wall Street Journal reported on Monday, citing unidentified sources. A deal would see Deutsche Telekom's stake in the carrier, which merged with SoftBank's wireless unit Sprint last month, rise above 50%, the report said.
(Bloomberg) -- SoftBank Group Corp. doubled the amount it plans to spend buying back shares and announced changes to its board, including the resignation of long-time director Jack Ma.The company plans to repurchase as much as 500 billion yen ($4.7 billion) worth of its own stock by March 2021, it said in a statement. That’s on top of an equally sized repurchase it had announced in mid-March.The Tokyo-based company also announced several changes to its board, including the departure of Ma, the co-founder of Alibaba Group Holding Ltd. Three new directors have been nominated, including Chief Financial Officer Yoshimitsu Goto. SoftBank shares rose as much as 3%.SoftBank, led by founder Masayoshi Son, is buying back shares to bolster its stock price after its portfolio of startup investments lost value. The company expects to book a record 1.35 trillion yen operating loss for the year ended March 31 when it reports financial results Monday afternoon in Tokyo. After aggressively investing in startups in recent years, SoftBank is marking down the value of stakes in companies such as WeWork, Oyo Hotels and Uber Technologies Inc.“The buyback announcement is a surprise, given the slew of low expectations and bad news,” said Justin Tang, head of Asian research at United First Partners.SoftBank plans to fund the buybacks in part through the sale of stakes in Alibaba and T-Mobile US Inc., Bloomberg News has reported. SoftBank is now in talks to sell a “significant portion” of T-Mobile US to controlling shareholder Deutsche Telekom AG, Dow Jones reported.The company said on Friday that it had bought 250.6 billion yen of its own stock since March 13 under the original re-purchase plan, about half of the 500 billion yen budget.Read more: SoftBank’s $23 Billion Buyback Helps Investors Ignore Profit HitThat first buyback, announced in mid-March, initially failed to lift SoftBank’s stock amid concerns the conglomerate’s portfolio of startups is vulnerable to the economic shock from the coronavirus pandemic. When the shares plunged more than 30% in the week that followed, Son took an unprecedented step to unveil a broader plan to repurchase as much as 2 trillion yen, without detailing the timing. The latest announcement is part of that broader plan.“Son is also sending a message that he is serious about funding that 2 trillion yen buyback he announced in March,” Tang said.The stock gained almost 70% since SoftBank said it plans to sell assets to raise as much as 4.5 trillion yen over the coming year to buy shares and slash debt.Read more: SoftBank Heads for Record Loss After $80 Billion Startup SpreeThe company’s Vision Fund business, focused on technology investments that contributed more than half of its reported profit a year ago, has swung to a projected 1.8 trillion yen loss. The company’s overall net loss will likely reach 900 billion yen.Son’s increasingly risky bets over the past few years coincided with departures from SoftBank’s board of some of it most outspoken members. Shigenobu Nagamori, the founder of motor maker Nidec Corp., stepped down in 2017, while Fast Retailing Co. Chief Executive Officer Tadashi Yanai left last December. When Paul Singer’s Elliott Management Corp. disclosed in February that is has built a stake of close to $3 billion in SoftBank, one of its requests was to increase the number of independent directors.Ma’s departure is a historic moment since he and Son have sat on each other’s boards for years. Alibaba is regarded as Son’s most successful investment. In addition to Goto, a long-time SoftBank veteran, Lip-Bu Tan and Yuko Kawamoto will join, bringing the total of external board members to four.Tan is a founder and chairman of Walden International, a venture capital firm based in San Francisco, and CEO of Cadence Design Systems Inc. He holds a master’s degree in nuclear engineering from the Massachusetts Institute of Technology and received an MBA from the University of San Francisco.Kawamoto is a professor at Waseda University whose subjects include corporate governance. She holds a bachelor’s degree in social psychology from the University of Tokyo, a master’s degree in development economics from Oxford University and spent years working at McKinsey & Co. Kawamoto will be SoftBank’s sole female board member.(Updates with details of asset sales in sixth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Deutsche Telekom Ag (ETR:DTE) share price has risen by 9.43% over the past month and it’s currently trading at 13.78. For investors considering whether to8230;
The Deutsche Telekom Ag (ETR:DTE) share price has risen by 9.43% over the past month and it’s currently trading at 13.78. For investors considering whether to8230;
(Bloomberg) -- Deutsche Telekom AG said the hit to its finances from the pandemic, such as through store closures and reduced roaming revenues, will likely be “limited” as revenues from phone services are rising, enabling it to confirm guidance for 2020.The Bonn, Germany-based telecommunications company’s adjusted Ebitda after leases rose 10.2% to 6.5 billion euros ($7 billion) in the first quarter, beating a company-compiled estimate for 6.3 billion euros.The company had previously guided for full-year adjusted Ebitda AL of around 25.5 billion euros.Key InsightsAdjusted Ebitda AL grew 14.5% at T-Mobile US Inc., the biggest contributor to Deutsche Telekom’s total revenues. The division warned last week that the pandemic prevents it from providing a full-year financial forecast, even as it reported profit that exceeded analyst estimates.In Germany adjusted Ebitda AL rose 2.7% as mobile service revenues gained and it added 83,000 new broadband customers, showing the benefit of its fiber-optic network buildout and in its home market to fend off competition; it has also recently inked a sales deal for TV content from Walt Disney Co.Revenues rose 2.3% to 19.9 billion euros, a 2.3% gain from a year earlier but just short of consensus estimates for 20.1 billion euros.T-Mobile is now integrating its $26.5 billion acquisition of Sprint, completed in April, and will report consolidated figures in the second quarter.Market ReactionDeutsche Telekom shares rose 0.8% in early trading, and are down 6.5% so far this year. Get MoreDeutsche Telekom Ponders European M&A After $26.5 Billion Deal(Updates with shares under Market Reaction)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Britain’s biggest landline network has brought on a new supplier to help cut its reliance on China’s Huawei Technologies Co. and ramp up construction of a nationwide fiber-optic system.BT Group Plc’s infrastructure unit Openreach signed a long-term contract to bring in U.S. firm Adtran Inc. alongside Huawei and Finland’s Nokia Oyj as a strategic partner. Adding an American component maker will help London-based BT limit the use of China’s Huawei technology in its fiber-optic network and meet national security rules. The parties didn’t disclose financial terms.In January, Britain capped the amount of data that can be carried over Huawei’s full-fiber and 5G equipment at 35%, and gave networks three years to comply. The move dealt to a blow to the Shenzhen-based vendor, but stopped short of U.S. demands for an outright ban.Huawei makes up 44% of the U.K.’s full-fiber market, according to the government. BT said overhauling systems to obey the rules may cost it 500 million pounds ($611 million), though mainly it pointed to the changes it needs to make to wireless towers.“It helps Openreach to be able to execute on their plan and still abide by those requirements,” Jay Wilson, Adtran’s chief revenue officer, said in an interview. The contract could make up a 10th of Adtran sales during the peak of its build, he added. The Huntsville, Alabama-based company also supplies some of BT’s small startup rivals, as well as big U.S. carriers like AT&T Inc. and European peers like Deutsche Telekom AG.Read more: Britain’s Plan to Get Working Again Doesn’t Seem to Be WorkingThe contract comes a week after BT accelerated its planned fiber rollout, pledging to connect 20 million premises by the mid- to late-2020s if conditions allow. It also scrapped dividend payments to help pay for the pledge, and rivals Telefonica SA and Liberty Global Plc announced the same morning that they were merging their U.K. units to create a stronger rival to the former state monopoly.Bloomberg first reported Openreach’s search for a new supplier in November. Peter Bell, the company’s network technologies director, said in a statement that the Adtran deal would help the U.K. “bounce back from the Covid-19 pandemic” with a better broadband network. The U.K. has lagged behind European neighbors in building out glass-based fiber connections, relying instead on lower-bandwidth, copper-transmitted wires.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Europe's largest telco reported double-digit profit growth in the first quarter, echoing competitor Vodafone's <VOD.L> solid annual results this week even as Telefonica <TEF.MC> and BT <BT.L> have struggled. Deutsche Telekom reported a 10.2% increase in first-quarter core profit to 6.54 billion euros (5.79 billion pounds), beating the median forecast of 6.3 billion euros in its own survey of analysts. Profit growth outstripped a 2.3% rise in revenue as margins were lifted by higher call and data volumes as well as lower customer churn, offsetting the impact of store closures, lower roaming revenues and delays to IT projects.
(Bloomberg) -- On the night of April 20, Christian Klein gained two major responsibilities.He became a father for the second time. And Klein was named sole chief executive officer of SAP SE, where he had risen through the ranks after starting as a student more than two decades ago.Klein’s promotion was a major upset -- not because the 39-year-old manager isn’t seen suited for the role. But it abruptly aborted the ascent of his co-CEO, Jennifer Morgan, who left after just six months, marking the shortest tenure of any leader among Germany’s largest 30 listed companies and the departure of the only woman from a league of white, German-speaking men.Speaking in his first international interview since SAP announced the surprise change shortly before midnight that Monday, Klein made no secret of the fact that the decision was painful, calling his last few calls with Morgan “pretty emotional.” The co-leader model under which SAP had successfully operated for many years suddenly caused friction in the global organization, he said.“There are a lot of positives to this co-CEO model -- you can divide and conquer and you can share responsibilities,” Klein said in a telephone interview. “But in the crisis, we also saw the downside of this model.”Klein said that in plotting SAP’s course through the Covid-19 crisis, he and Morgan realized they were “not on the same page” on several decisions he declined to disclose. They had already experienced some disagreements in the early days of their joint tenure, but the pandemic was an “accelerator,” making the issues more pronounced, Klein said. When they went to the supervisory board to explain the impasse, the panel decided to jettison Morgan and asked Klein to carry on alone.See also: Vodafone CEO Looks On as Rivals Follow His Convergence PlaybookIt’s ComplicatedSAP had been committed to the co-CEO structure, but when the coronavirus hit, it became clear that having two people in charge was no longer tenable, according to a person with knowledge of the matter. The leadership structure was described as disorganized and, at times, chaotic, by the the person, who asked not to be named discussing the company’s internal dynamics.It took longer to get some things done because, in certain instances, managers needed sign off from two different CEO offices, this person said. Morgan hasn’t responded to requests for comment on her departure.Read more: SAP Chief’s Short Stint ‘Disaster’ for German DiversityKlein now faces a range of challenges to keep the world’s largest maker of business-management software on course. SAP has its headquarters in rural Germany an hour’s drive south of Frankfurt. But there’s a huge operation in Silicon Valley that fell under the remit of American-born Morgan and may now feel disenfranchised by her exit, a risk that Klein acknowledged he must address. Then there are past acquisitions that have yet to be fully integrated, like the $8 billion purchase of survey-software Qualtrics that got a lukewarm reception from investors.There’s also SAP’s engineering response to the coronavirus that requires Klein’s attention. The German government has drafted SAP and Deutsche Telekom AG to help develop an app to trace Covid-19 infections. Klein said SAP and its partners, which also include Alphabet Inc.’s Google and Apple Inc. are working under time pressure to ensure data security, scalability and user experience of the product, though he wouldn’t give an exact time frame when an app might be available to download.Read more: Germany Taps SAP, Deutsche Telekom for Contact Tracing AppChecking InAs head of operations, everyday business also keeps Klein busy: checking in with work-from-home staff via virtual all-hands meetings, conversations with customers and calls with the German government about SAP’s role in the virus recovery. The CEO said he’s also considering how to evolve the company’s commercial model, call center and digital marketing strategy.Founded by a group of former IBM programmers, SAP still relies in no small part on the input of one its co-creators: Hasso Plattner, the company’s biggest individual shareholder, chairman and engineering mastermind, who created some of SAP’s most successful products. Klein and Plattner are close, with the chairman sending a glowing internal mail after Klein’s promotion in which he assured him of his support. It’s an important vote of confidence for Klein from the one voice that matters at SAP.One thing currently not on Klein’s mind is acquisitions, and the company will rely first and foremost on organic growth, he said. Eventually though, deals will come back into focus, and the CEO has already identified a gap in its offerings.Good Sleeper“I would love to have a telecommunications solution in the portfolio right now,” Klein said, referring to video-conferencing tools that have been in high demand during the lockdown. “I’m a little bit jealous of not having such a solution in the portfolio – now in the crisis for sure.”For now, though, his attention is aimed at steering Germany’s most valuable company through the upheaval wrought by the sudden leadership change, while managing the work of 100,000 employees who are largely working from home.And then there’s the challenge of juggling the tasks of an enlarged family. Luckily for Klein, he says his newborn daughter is a good sleeper -- one less distraction as he steers the technology company through a viral pandemic and economic crash.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg Opinion) -- Do you remember 5G? Before the coronavirus consumed all of our attention, the fifth-generation mobile networks were supposed to be the panacea for lagging economies, telecoms firms, keeping pace with China, autonomous cars, smart factories and plenty more besides.Overhyped? Maybe. But 5G will still be an economic boon. And perhaps inevitably, Covid-19 has collided with the rollout of the new technology, which ultimately depends on four ingredients: popular acceptance and adoption; the ability to install the equipment; access to capital; and the availability of spectrum — the radio frequencies used to transmit the signal that will allow vast gobs of data to be transmitted at lightning speeds.For now, telecoms companies insist the pandemic will only delay the rollout by several months. That may be optimistic. Problems with any one of the four factors above could throw things off course, and the current environment has elevated that likelihood. Given their role in dividing up the spectrum and auctioning it, governments have a particular responsibility to ensure they don’t hold up the process any more than is necessary.Much has been made of the conspiracy theories falsely suggesting 5G contributed to, or even caused, the virus’s spread. They prompted the gloriously terse response from the U.K.’s telecommunications regulator Ofcom: “This is wrong. There is no scientific basis or credible evidence for these claims.”The falsehoods may still permeate public opinion. Research suggests that even if people don’t believe conspiracy theories per se, they can nonetheless influence their views. So an underlying fear, however unwarranted, could persist that 5G is somehow detrimental to one’s health. That could perpetuate popular opposition to the necessary proliferation of new antennas.The virus has already disrupted the global supply chain, making it harder to source gear from China in particular. Telecoms equipment maker Nokia Oyj said that such interruptions shaved 200 million euros ($218 million) from revenue in the first quarter, and they continue to be a risk. Lockdowns are also making it harder to install that equipment. Orange SA Chief Financial Officer Ramon Fernandez said last week that fiber deployment — whose wires connect not just homes but the antennas — will be delayed by the virus.Telecoms operators are changing how they spend their money, too. The surge in people working from home has put huge pressure on their existing setup. That means operators are having to reallocate capital in the short term toward making sure their fixed networks are reliable, rather than working to upgrade and install everything that’s needed for the next generation of mobile services.Even with all that, Nokia CEO Rajeev Suri told me that he expects the delay will probably only be a “couple of months,” echoing comments from his peer at rival Ericsson AB, Borje Ekholm. Perhaps the biggest risk to a fast rollout is the availability of spectrum, which is where governments come in. They dedicate a particular tranche of frequencies to 5G and then auction it off. A slew of those sales have been put on the back burner by the pandemic. While Germany and Italy have all but finished theirs, other countries, including France, the U.K. and Spain, are unlikely to auction frequencies until later this year.With national budgets stretched by efforts to counter the impact of the virus, there will be a temptation to milk those auctions for all they’re worth. That could create a pinch on companies’ finances that makes rolling out the new networks even harder. Italy managed to squeeze 6.2 billion euros out of its telecoms firms back in 2018; Germany wrung 6.6 billion euros from Deutsche Telekom AG, Vodafone Group Plc, Telefonica Deutschland AG and 1&1 Drillisch AG. Economists generally classify networks as “productive” government investments, because they contribute positively to long-term economic output. It would be better for states to foster their new 5G networks by not overcharging for them. Otherwise they risk ceding more ground to China in the race for adoption. In return for more generous auction terms, it would be fair for governments to request an accelerated rollout.The virus is already reaping havoc on vast tracts of the economy. Best not to let it damage any more growth.This 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/opinionSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
(Bloomberg) -- Telefonica SA and billionaire John Malone’s Liberty Global Plc are exploring a combination of their U.K. operations, people with knowledge of the matter said, in a deal that would reshape the British telecommunications industry.The companies are discussing bringing together Telefonica’s O2 wireless unit and Liberty Global’s Virgin Media business, according to the people, who asked not to be identified because the information is private. If they reach an agreement, a transaction could be announced as soon as next week, the people said.Liberty Global’s class A shares rose almost 15% in New York trading Friday, while Telefonica’s American depositary receipts closed up 6.4%.A tie-up would add to a long history of dealmaking by Malone, who earned the nickname “Cable Cowboy” while at the forefront of the American pay-television industry in the 1990s. Combining forces in the U.K. would help Telefonica pare its debt and deliver on a new strategy meant to streamline its global empire.The potential deal would be the biggest in the U.K. telecommunications industry since 2015, when former monopoly BT Group Plc agreed to buy mobile operator EE Ltd. for 12.5 billion pounds ($16 billion), according to data compiled by Bloomberg.Telefonica is scheduled to announce its first-quarter earnings on May 7. No final decisions have been made, and talks could still fall apart or be delayed, the people said.A representative for Telefonica declined to comment. A spokesperson for Liberty Global couldn’t immediately be reached for comment.New Street Research valued a potential takeover of O2 UK at $15.8 billion, assuming 50% of the 5.2 billion pounds in cost savings of combining with Virgin goes to O2 owner Telefonica.“This deal has been mooted for a while, and makes a lot of sense given the trend toward fixed and wireless network convergence,” said Matthew Howett, founder of London-based analyst firm Assembly Research.A deal that brings together a fixed-line operator with a mobile provider is more likely to be approved by regulators than mobile-to-mobile consolidation, Howett said. “It doesn’t reduce competition in mobile, and preserves the four-player market that Ofcom and others have been committed to,” he said, referring to Britain’s telecommunications regulator.Mobile, TelevisionThe discussions come at a time when dealmaking has been crippled globally by the coronavirus pandemic. April was the worst month for deals globally since 2004, with a smaller volume of announced deals than even in the depths of the global financial crisis. The potential transaction would be the largest since the Covid-19 outbreak.O2, a pure-play wireless carrier, had 34.5 million customers using its network at the end of December, according to the company. O2 reported 7.1 billion euros ($7.8 billion) of revenue last year, accounting for about 15% of Telefonica’s total, data compiled by Bloomberg show.The talks mark another attempt by Telefonica to pursue a deal involving its O2 unit. In 2016, European antitrust regulators blocked Telefonica’s planned $15 billion sale of the business to billionaire Li Ka-shing’s CK Hutchison Holdings Ltd., the owner of rival operator Three.Virgin Media offers pay-television, broadband, and phone packages in the U.K. It also sells mobile services that run on BT’s network. That partnership is set to shift to Vodafone Group Plc when the current agreement runs out late next year.Liberty Global generated almost 40% of its revenue from Virgin Media last year, according to data compiled by Bloomberg. It bought the business in 2013 through a cash-and-stock deal valued at about $16 billion at the time of announcement.Restructuring PlanTelefonica announced a restructuring plan in November that will see it focus on four main markets, including the U.K., while scaling back its presence in Latin America. The Madrid-based company also said at the time it was looking to monetize some infrastructure assets and would take an “open approach” to deals.Malone made his name selling cable provider Tele-Communications Inc. to AT&T Inc. for $48 billion in 1999. He pursued a decade of rapid expansion in the European telecommunications industry with Liberty Global starting in 2005 before making a series of divestments in recent years.Liberty Global last year completed the sale of its German and eastern European operations to Vodafone Group Plc for 18.4 billion euros ($20 billion). The group also offloaded its satellite TV unit and sold its Austrian division to Deutsche Telekom AG in 2018. Another deal to sell Liberty Global’s Swiss business to Sunrise Communications AG fell apart last year following opposition from the buyer’s largest shareholder.In 2018, Liberty Global spun off some of its operations to form a separate vehicle called Liberty Latin America Ltd. That company then pursued a takeover of rival regional carrier Millicom International Cellular SA, though talks fell apart after the parties failed to reach an agreement on valuation.(Updates with analyst estimates in eighth paragraph)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Deutsche Telekom Ag (ETR:DTE) share price has risen by 11.7% over the past month and it’s currently trading at 13.405. For investors considering whether to8230;
(Bloomberg) -- The German government has brought in SAP SE and Deutsche Telekom AG to help develop an app to trace Covid-19 infections as European governments look to national champions to help build solutions to the pandemic.“Deutsche Telekom and SAP will play their part in Germany and throughout Europe to ensure that European digital technologies are a central component in the effective fight against coronavirus,” SAP said Monday in an email.Other parties will also be involved in the creation of the app, a person familiar with the situation said, without giving names of the other parties involved. SAP referred questions on the status of the project to the government.Governments have been debating how to monitor citizens to help slow the spread of the virus, using home-built systems or building on top of a framework created by Apple Inc. and Alphabet Inc.’s Google. In the U.K., the National Health Service said Monday that it would build its own app, joining countries like Australia and Singapore.Germany said Sunday it would opt for a decentralized solution to help monitor those who have contracted Covid-19 and alert people who have come into contact with the infected patients. A group of German startups also had been in talks with the government about developing an app that would help trace people who have been exposed to the virus.Under a decentralized system, contact-tracing apps collect anonymous data about nearby mobile phones using Bluetooth technology through tools such as those being built by Apple Inc. and Alphabet Inc.’s Google. Once an infection is confirmed, that information is sent to a server. People with devices using the app could learn if they had been in proximity to a confirmed infection without revealing the patient’s identity.“A decentralized solution would create more trust among users,” Steffen Seibert, spokesman for Chancellor Angela Merkel, said Monday.Germany’s decision throws weight behind proponents of that approach who’ve clashed with supporters of a centralized method, which, by contrast, could allow someone’s contacts to be uploaded to government servers where authorities would then decide who to inform of a possible infection. Privacy supporters have opposed that method, saying it hands too much information to authorities that could be used for other, more malicious reasons after the crisis passes.(Updated with additional context)For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
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Notification and public disclosure of transactions by persons discharging managerial responsibilities and persons closely associated with them 09.04.2020 / 14:00 The issuer is solely responsible for the content of this announcement. 1\. Details of the person discharging managerial responsibilities / person closely associated a) Name Title: First name: Adel Last name(s): Al-Saleh 2\. Reason for the notification a) Position / status Position: Member of the managing body b) Initial notification 3\. Details of the issuer, emission allowance market participant, auction platform, auctioneer or auction monitor a) Name Deutsche Telekom AG b) LEI 549300V9QSIG4WX4GJ96 4\. Details of the transaction(s) a) Description of the financial instrument, type of instrument, identification code Type: Share ISIN: DE0005557508 b) Nature of the transaction Purchase of shares to satisfy obligations from Deutsche Telekom AG’s Share Matching Plan for Board of Management members. c) Price(s) and volume(s) Price(s) Volume(s) 12.2250 EUR 223521.90 EUR 12.2300 EUR 173861.68 EUR d) Aggregated information Price Aggregated volume 12.2272 EUR 397383.5800 EUR e) Date of the transaction 2020-04-08; UTC+2 f) Place of the transaction Name: xetra MIC: XETR * * *09.04.2020 The DGAP Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Archive at www.dgap.de * * * Language: English Company: Deutsche Telekom AG Friedrich Ebert Allee 140 53113 Bonn Germany Internet: www.telekom.com End of News DGAP News Service
(Bloomberg) -- After closing an industry-altering U.S. wireless deal, Deutsche Telekom AG’s Chief Executive Officer Tim Hoettges now wants to change telecommunication markets closer to home. Europe’s phone industry needs mergers if it wants to build the kind of superior infrastructure needed to compete with bigger rivals in Asia and the U.S., Hoettges said Wednesday. He indicated he’s willing to get the German carrier involved in M&A to achieve that goal. “Europe is too fragmented,” Hoettges said in a phone interview. “Wherever I see a deal or an opportunity for European market consolidation that’s convincing, then I would always look at that with the partners.”Deutsche Telekom’s U.S. unit T-Mobile US Inc. on Wednesday completed its $26.5 billion acquisition of Sprint Corp. after a years-long saga that included a standoff with antitrust officials and a court battle with U.S. states. Hoettges pushed for the combination for years to give the company a stronger vehicle to expand in the profitable U.S. market. T-Mobile’s importance for Deutsche Telekom has grown steadily and it now accounts for about half of sales, up from around a third in 2014.“Our goal is to become the number-one in the U.S. market,” Hoettges said.T-Mobile and Sprint scrapped a previous plan to merge in 2014 after meeting resistance in Washington. Their second attempt failed in late 2017 when Hoettges and Masayoshi Son, the chairman of Sprint’s parent company SoftBank Group Corp., couldn’t agree on how to structure control of the combined entity, people familiar with the matter said at the time.Hoettges brought the merger back from the dead a few months later. On Jan. 1, 2018, he took out his phone and tapped out an SMS to Son, wishing him a happy New Year and expressing regret that the merger hadn’t happened. It reignited a conversation that culminated in Wednesday’s deal.It frees Hoettges to focus on markets in Europe, where more than 100 wireless carriers vie for airwaves and customers. Outside Deutsche Telekom’s business in Germany, where it competes with Vodafone Group Plc and Telefonica SA, Deutsche Telekom has units in countries from Poland to the Netherlands and Romania.“Of course I was very much focused on America,” Hoettges said. “But I will work with verve on changing the regulatory and antitrust-law framework” in Europe to help bring about the consolidation the region needs, he said.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
Vodafone, Deutsche Telekom, Orange and five other telecoms providers have agreed to share mobile phone location data with the European Commission to track the spread of the coronavirus, lobbying group GSMA said on Wednesday. The companies, including Telefonica, Telecom Italia , Telenor, Telia and A1 Telekom Austria met with EU industry chief Thierry Breton on Monday. The Commission will use anonymised data to protect privacy and aggregate mobile phone location data to coordinate measures tracking the spread of the virus, an EU official said.