Restructuring / Turnaround Strategies Case Study

Deustche Telekom: A Turnaround

Abstract:
In the late 1990s and the early 21 st century, Deutsche Telekom, a German telecom major and one of the largest integrated telecommunications service providers in the world, faced falling revenues in its core businesses. This was as an aftermath of the liberalisation of the telecom market in Europe and the company faced an unenviable task of being a regulated player in an inflexible labour market. In 1999, Deutsche Telekom restructured its board and reorganised itself into four divisions, T- Mobile, T-Systems, T-Com and T-Online.

Pedagogical Objectives:

• To discuss the various strategic initiatives that were taken at Deutsche Telekom to make a turnaround.

Keywords : Deutsche Telekom turnaround; Liberalisation of the telecom industry; 6+6 point cost cutting programme; T-Systems; T-Com; T-Mobile; T-Online; Public switched telephone network; Kreditanstalt fur wiederaufbau; 3G mobile networks; Restructuring / Turnaround Strategies Case Study; T-Nova Deutsche Telekom innovationsgesellschaft; Growth strategy; Deregulation of the telecom market; European telecom industry; Regulatory Authority for Telecommunications and Posts