• Through the Group’s latest B2B reorganisation, DT’s home market NatCo is expanding beyond Germany and into the Americas, Asia, and elsewhere.

Telekom’s global B2B play mapped out

Telekom’s global B2B play mapped out

Source: Greg Rosenke / Unsplash

Deutsche Telekom (DT) is in the process of setting up ten new international entities as part of a move to refashion its home market business into an international telecoms services player.

A formal outline of the reorganisation, provided by DT to Deutsche Telekomwatch, shows “NewCos” have been created, or are in the process of being established, in several Asian, European, and Latin American markets, to support the international ambitions of Deutsche Telekom Business Solutions (DTBS), its new, Germany-based unit.

Since early‑2019, new entities have been set up, under the Deutsche Telekom Global Business Solutions brand, in nine countries (Austria, Denmark, France, Hungary, Mexico, Singapore, Slovakia, Switzerland, and The Netherlands), according to the document.

A further NewCo is in the pipeline for Argentina, although has been delayed by COVID‑19 restrictions. In several other territories, existing businesses have been rebranded.

All of the new or renamed entities have been brought under the wing of Telekom Deutschland (TDE), DTBS’ parent NatCo.

The programme does not appear to have seen DT expand into any new territories, but TDE — until now predominantly focused on Germany — will now have a presence in at least 25 territories.

The complicated rejig forms part of the broader overhaul of DT’s B2B operations, initiated in 2019 and seeing its international communications and carrier services business folded within TDE (Deutsche Telekomwatch, #94 and passim).

Largely, the new country units are being set up to separate their activities from local units of T‑Systems (T‑Sys), their former parent division. T‑Sys, previously a one-stop-shop for telecoms and IT products and services, is in the midst of a wider rationalisation programme and has distilled focus onto IT and digital services as part of the asset switch with TDE.

DTBS’ creation: the nuts and bolts

  • Reorganisation approved by the Group’s Supervisory Board in September 2019–October 2019 and largely enacted on 1 July 2020.
  • New DTBS unit created within TDE, from NatCo’s Business Customers area led by Hagen Rickmann.
  • T‑Sys’ Telecommunications Services and Classified ICT units transferred to DTBS.
  • TDE to absorb, ostensibly from October 2020, Deutsche Telekom Global Carrier (DTGC). DTGC’s commercially-focused Telekom Global Carrier area (now within DT’s Europe segment) is to become part of DTBS, while DTGC’s infrastructure-centred Network International area (currently part of Group Headquarters & Group Services) will be absorbed by TDE’s technology arm Deutsche Telekom Technik.
  • T‑Sys’ Internet of Things and security businesses (Deutsche Telekom IoT and Telekom Security) reformed as separate legal entities, although still overseen by T‑Sys organisationally.
  • T‑Sys retains control of several digital services-focused portfolio units, covering Dedicated Systems Integration Solutions, Digital Solutions, Health, Managed Infrastructure Services & Private Cloud, Public Cloud Managed Services, Road Charging, and SAP.

Loose ends still to tie up in broader B2B overhaul

Following talk of intra-Group duplication and tension, DT hopes the switch-around will more clearly delineate TDE and T‑Sys’ activities in the B2B space, and create a more flexible and harmonious platform to create growth and tackle operators’ prolonged profitability challenges in enterprise services.

It might not yet have ironed out all the creases, however — one question is how DTBS will ensure smooth inter-working with other NatCos where it overlaps with their footprint, including in several European markets and the USA. All DT NatCos have their own internal B2B operations and awkwardly, in some cases (Magyar Telekom, T‑Mobile Czech Republic, and T‑Mobile Poland) retain former T‑Sys enterprise subsidiaries, absorbed under previous attempts to overhaul the enterprise division (Deutsche Telekomwatch, passim).

Another is how much sense it makes to have distinct departments within DT all separately pushing IoT, security, IT, and telecoms services in Germany and across international markets.

TDE is also yet to articulate exactly how it plans to expand the DTBS business, and improve margin — although post-COVID-19 era remote connectivity services are sure to feature.

T‑Sys’ International Revenue line — across IT and telecoms — represented only around a quarter of its total sales in the year to 31 December 2019, and was down 2.8% in the twelve months, to €1.76bn.

When it officially came into operation on 1 July 2020, DT indicated DTBS had taken on about 8,000 staff from T‑Sys, around 5,000 of which are based outside Germany. These figures do not appear to include any existing TDE employees that have transferred into DTBS, or DTGC staff.

T‑Systems and Telekom Deutschland international B2B presence, post-reorganisation
RegionMarketT‑Systems presenceDTBS presence
 Source: Deutsche Telekom.

Asia

Hong Kong

T‑Systems Hong Kong Ltd.

Deutsche Telekom Global Business Solutions China (HK) Limited

Japan

Deutsche Telekom GBS Japan K.K.

Singapore

T‑Systems Singapore Pte. Ltd.

Deutsche Telekom Global Business Solutions Singapore Pte. Ltd.

Europe

Austria

T‑Systems Austria

Deutsche Telekom Global Business Solutions GmbH

Belgium

T‑Systems Belgium Road Charging NV

Deutsche Telekom Global Business Solutions Belgium NV

Denmark

T‑Systems Nordic A/S

Deutsche Telekom Nordic A/S

France

T‑Systems France SAS

Deutsche Telekom Global Business Solutions France SAS

Greece

Deutsche Telekom Global Business Solutions Greece E.P.E

Hungary

Deutsche Telekom Systems Solutions Hungary Kft.

Deutsche Telekom IT & Telecommunications Hungary Kft.

Italy

Deutsche Telekom Global Business Solutions Italia S.r.l.

Luxembourg

Deutsche Telekom Global Business Solutions Luxembourg S.A.

Netherlands

T‑Systems Nederland B.V.

Deutsche Telekom Global Business Solutions Nederland B.V.

Russia

LLC T‑Systems RUS

Deutsche Telekom GBS RUS LLC.

Slovakia

Deutsche Telekom Systems Solutions Slovakia s.r.o.

Deutsche Telekom IT & Telecommunications Slovakia s.r.o.

Slovenia

Deutsche Telekom Global Business Solutions telekomunikacije d.o.o.

Spain

T‑Systems ITC Iberia S.A.

Deutsche Telekom Global Business Solutions Iberia S.L.

Switzerland

T‑Systems Schweiz AG / T‑Systems Data Migration Consulting AG

Deutsche Telekom Global Business Solutions Schweiz AG

Turkey

DEUTSCHE TELEKOM GLOBAL BUSINESS SOLUTIONS TELEKOMÜNİKASYON LİMİTED ŞİRKETİ

UK

T‑Systems Ltd.

Deutsche Telekom Global Business Solutions UK Ltd.

Latin America

Argentina

T‑Systems Argentina S.A.

Deutsche Telekom Global Business Solutions Argentina S.A.

Brazil

T‑Systems do Brasil Ltda.

Deutsche Telekom Telecomunicações e Serviços do Brasil Holding Ltda / Deutsche Telekom Telecomunicações e Serviços do Brasil Ltda.

Mexico

T‑Systems Mexico, S.A. de C.V.

DTAG Global Business Solutions Mexico S.A. de C.V.

North America

Canada

Deutsche Telekom Global Business Solutions Canada Inc.

USA

T‑Systems North America, Inc.

Deutsche Telekom North America Inc.