Deutsche Telekom AG (DTEGF) - OTCQX
  • Mon, Feb. 22, 2:52 PM
    • Deutsche Telekom (OTCQX:DTEGY +2.1%) has a unique new project on the way: A smartwatch based on a tie-up with musician will.i.am (a k a Black Eyed Peas frontman William Adams).
    • The watch -- called "dial" -- will be targeted to European countries and mostly voice controlled, with an understandable focus on music.
    • It will have a SIM card embedded, differentiating it from competitors whose watches depend on a smartphone connection.
    • DT has an exclusive in some European countries where it already has a presence. Will.i.am has a similar deal with U.K. carrier Three (OTCPK:HUWHY), but no such arrangement with Deutsche Telekom's U.S. unit, T-Mobile (TMUS +1.8%).
    | Mon, Feb. 22, 2:52 PM | 1 Comment
  • Oct. 14, 2015, 10:39 AM
    • Moody's is raising its outlook for Europe's telecoms to stable as it predicts a return to revenue growth overall, amid growing consumer demand and spending capacity, and price increases.
    • The firm expects revenues overall to grow by 1-2% over the next 12-18 months.
    • "Increasing demand for broadband, improved consumer spending capacity and a change in focus from price competition to service quality leading to price increases will underpin European telecommunications service providers' return to revenue growth in 2016," says Moody's analyst Carlos Winzer.
    • He pointed to Telefonica (TEF -1.6%), whose ARPU was up sequentially to €71.80/month from €68.80/month and who's rolling out premium packages at premium prices. Moody's expects positive ARPU for Deutsche Telekom (OTCQX:DTEGY) amid similar premium pricing.
    • Despite a stable outlook on the Africa, Middle East and Turkish markets, slowing GDP in some countries (including Nigeria and those on the Arabian peninsula) could press revenue growth.
    • The outlook on Russia's big three, however -- Mobile TeleSystems (MBT +2.1%), MegaFon (OTC:MFOYY) and VimpelCom (VIP +0.8%) -- stays negative amid the Russian economic crisis.
    | Oct. 14, 2015, 10:39 AM | 2 Comments
  • Oct. 2, 2015, 10:13 AM
    • Vivendi (OTCPK:VIVHY -1.7%) -- already the biggest shareholder in Telecom Italia (TI -3.7%) -- is making moves toward boosting its stake to about 19%, Reuters has reported, with an eye toward increasing its clout there.
    • Banks have reportedly arranged derivative deals so that Vivendi can add to holdings. Chairman Vincent Bollore is on record as saying he wants to keep investing in Telecom Italia as part of a southern Europe strategy, and TI CEO Marco Patuano says that's "always fine."
    • One source says Bollore wants to be kingmaker in any upcoming European consolidation, which might include TI tie-ups with Orange (NYSE:ORAN) or Deutsche Telekom (OTCQX:DTEGY).
    • Vivendi could claim at least two seats on TI's board, but hasn't done so yet; so far it says it's just a long-term investor. But the investments could keep coming.
    | Oct. 2, 2015, 10:13 AM | 1 Comment
  • Jun. 11, 2015, 5:45 PM
    • Dish Network (NASDAQ:DISH) is talking to banks about funding a bid to acquire T-Mobile (NYSE:TMUS), to the tune of $10B-$15B in borrowing for the cash part of the deal, The Wall Street Journal is reporting.
    • T-Mobile is up 3.6% after hours; Dish is up 1.7%.
    • The deal's in early stages, but as discussed, the stock portion would leave T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) with a significant minority stake in the combo.
    • No word on how much Dish would pay for T-Mobile, but talking with banks shows it's moving forward.
    • In the previous discussions, one key issue already seems sorted out among the personality-laden leaders: Dish CEO Charlie Ergen would serve as chairman, while T-Mobile's John Legere would be CEO.
    | Jun. 11, 2015, 5:45 PM | 12 Comments
  • Feb. 27, 2015, 9:44 AM
    • Digital Turbine (NASDAQ:APPS) has opened up 6% as it announces it will launch its Ignite platform with Deutsche Telekom (OTCQX:DTEGY).
    • The solution is designed to get applications onto mobile devices faster, using zero-rated data (doesn't count against consumer caps) in more of a just-in-time way than with previous preloaded apps.
    • The company is promising dynamic app delivery optimized per mobile device "in the coming months."
    • Deutsche Telekom has more than 142M mobile customers; Digital Turbine's products are used by 31M customers/month.
    | Feb. 27, 2015, 9:44 AM
  • Feb. 24, 2015, 8:02 PM
    • U.K. mobile firms are likely looking at a license fee increase as regulator Ofcom follows its government mandate to ensure spectrum fees reflect market value.
    • EE (ORAN, OTCQX:DTEGY) -- on its way to becoming part of BT Group (NYSE:BT) -- Three (OTCPK:HUWHY), O2 (NYSE:TEF) and Vodafone (NASDAQ:VOD) could see fees for the 900 MHz and 1800 MHz bands rising to a total £223.3M/year ($345.5M/year) -- up from the combined £64.4M/year they pay now.
    • Considering proportional increases, EE might see its current £24.9M/year rise to £75.6M.
    • Related mobile stocks were up today, with the exception of Vodafone, which saw a downgrade from Bank of America: ORAN +1.7%; OTCQX:DTEGY +1.9%; TEF +1.4%; OTCPK:HUWHY +0.3%; VOD -3.3%.
    • Previously: Vodafone lower after BofA downgrade (Feb. 24 2015)
    | Feb. 24, 2015, 8:02 PM | 1 Comment
  • Feb. 13, 2015, 10:12 AM
    • European cable giant Liberty Global (LBTYA) will pay €183.5M (about $209M) to a pair of companies who had raised issues with Liberty's €3B purchase of KabelBW.
    • Deutsche Telekom (OTCQX:DTEGY) and NetCologne will withdraw litigation that might have led to the unwinding of the 2012 deal. German competition regulators have OK'd the arrangement after forcing another look at the purchase in 2013.
    • Liberty class A shares are up 2.3% on the news on heavy volume so far.
    | Feb. 13, 2015, 10:12 AM
  • Nov. 21, 2014, 12:02 PM
    • "The 50-50 situation isn't a long-term scheme," says Orange (NYSE:ORAN) CEO Stephane Richard about his company's Everything Everywhere U.K. mobile JV with Deutsche Telekom (OTCQX:DTEGY). He adds "all options are open," but cautions investors not to "expect anything spectacular in the short-term."
    • Bloomberg reported in October Orange and Deutsche were open to an EE sale, while adding an IPO was still "the most likely outcome" for the JV.
    • With price competition remaining fierce and rivals narrowing EE's 4G coverage lead, the carrier saw its subscriber base (still the U.K.'s largest) fall by 2% Y/Y in Q3 to 24.5M. Both EE and rivals are now investing in offering triple-play packages.
    • Orange has rallied on a good day for European equities. France's CAC 40 index is up 2.7%.
    | Nov. 21, 2014, 12:02 PM
  • Nov. 11, 2014, 3:32 PM
    • Orange (ORAN +3.9%) and Telefonica (TEF +2%) are higher in U.S. trading after Vodafone reported a smaller-than-expected calendar Q3 service revenue decline and upped its FY15 (ends March '15) EBITDA guidance. Over in Frankfurt, Deutsche Telekom (OTCQX:DTEGY) rose 2.2%.
    • Though improved from Q2's 7.9% decline, Vodafone's European service revenue still fell 5% Y/Y in Q3. European mobile service revenue fell 5.6% (improved from Q2's 9% drop), as price pressure and voice/SMS revenue declines continue taking a toll.
    | Nov. 11, 2014, 3:32 PM
  • Oct. 23, 2014, 10:40 AM
    • Though it rejected Iliad's overtures, Deutsche Telekom (OTCQX:DTEGY) is still trying to find a suitor for T-Mobile USA (TMUS +2.7%), Germany's Manager Magazin reports.
    • The magazine speculates America Movil (AMX +0.8%), which no longer counts AT&T as an investor, could make a bid. For now, Carlos Slim's carrier only operates in the U.S. through its TracFone Wireless prepaid MVNO.
    • AMX is also about to get a windfall from the sale of Mexican assets being unloaded to appease regulators.
    | Oct. 23, 2014, 10:40 AM | 2 Comments
  • Oct. 13, 2014, 1:26 PM
    • France's Iliad (OTC:ILIAF) has abandoned its bid to acquire T-Mobile USA (TMUS -3.6%). T-Mobile has fallen sharply on the news.
    • Bloomberg previously reported Iliad had set a mid-October deadline to up its initial (rejected) offer for T-Mobile, or walk away. Deutsche Telekom (OTCQX:DTEGY) was believed to be skeptical about Iliad's ability to run T-Mobile, and also nervous about selling one of its few growth assets.
    • Update: Iliad says it abandoned its bid after Deutsche Telekom and certain T-Mobile board members "refused to entertain" an offer for a 67% stake (up from a prior 56.6%).
    | Oct. 13, 2014, 1:26 PM | 5 Comments
  • Oct. 2, 2014, 1:21 PM
    • Bloomberg reports Iliad (OTC:ILIAF) is prepping an offer that would involve the French carrier acquiring a larger T-Mobile USA (TMUS +1.4%) stake. Iliad previously made a rejected $33/share offer for a 56.6% stake.
    • Iliad is believed to have set a mid-October deadline for upping its T-Mobile bid or walking away, and has made outreaches to P-E firms. T-Mobile parent Deutsche Telekom (OTCQX:DTEGY) is reportedly wary of Iliad's overtures.
    • T-Mobile has caught a bid on the report. However, shares remain well below Iliad's original offer price.
    | Oct. 2, 2014, 1:21 PM
  • Jul. 31, 2014, 1:02 PM
    • France's Iliad (OTC:ILIAF) is offering $15B in cash for a 56.6% stake in T-Mobile USA (TMUS +7.3%) at a price of $33/share. Iliad values the remaining 43.4% at $40.50/share. Sprint (S -5.3%) has been reported to be planning a ~$40/share deal.
    • Iliad says it has obtained financing from unnamed banks, and would also do a capital raise to help pay for the deal. One issue: Iliad has a current market cap of just $16B, less than T-Mobile's $24.8B and Sprint's $30.6B. Sprint has reportedly lined up a $40B+ debt package to finance a T-Mobile deal.
    • A source tells the WSJ Iliad, which has upended the French mobile market with its aggressive pricing, views a T-Mobile merger as a "one-time opportunity to enter the world's-largest telecoms market."
    • Iliad also thinks (perhaps with good reason, given FCC/DOJ remarks) regulators will be more comfortable with its bid than Sprint's, since Iliad has no U.S. presence.
    • AT&T (T -2%) and Verizon (VZ -2.3%) have joined Sprint in selling off, as investors mull the possibility of a deal that would leave the number of nationwide U.S. carriers at 4. Concerns about Iliad's pricing history might also be weighing on shares.
    • Related tickers: OTCPK:SFTBF, OTCQX:DTEGY
    • Earlier: Iliad reportedly bids for T-Mobile USA
    | Jul. 31, 2014, 1:02 PM | 13 Comments
  • Jun. 4, 2014, 5:56 PM
    • Bloomberg reports Sprint (S) and T-Mobile USA (TMUS) are near an agreement for a deal that would value T-Mobile at ~$40/share. The WSJ is also reporting a ~$40/share price.
    • S +3.7% AH. TMUS +3.2% to $36.02 - a price that points to ongoing regulatory worries.
    • Sprint's offer will reportedly feature a 50-50 cash/stock split, and leave Deutsche Telekom (DTEGY), which currently owns 67% of T-Mobile, with a 15% stake in the combined company. Bloomberg's sources state an announcement could happen by July.
    • In addition, the carriers are reportedly close to agreeing on a breakup fee - Sprint and parent SoftBank (SFTBF) have reportedly been pushing for a smaller breakup fee for a deal that's bound to face tough DOJ/FCC scrutiny; T-Mobile and Deutsche Telekom have wanted a bigger one.
    • More on Sprint/T-Mobile
    | Jun. 4, 2014, 5:56 PM | 3 Comments
  • May 1, 2014, 8:01 AM
    • Thanks to aggressive pricing and a slew of promotions, T-Mobile (TMUS) added 1.3M branded postpaid subs (1.2M phone subs), 465K branded prepaid subs, and 600K non-branded subs in Q1. The branded postpaid figure dwarfs Verizon's (VZ) 539K and AT&T's (T) 625K - the difference in phone adds is even larger - and compares with a net loss of 333K for would-be suitor Sprint (S).
    • Regulators mulling a Sprint/T-Mobile tie-up are doubtlessly paying attention, and the same goes for AT&T and Verizon: The former has responded more aggressively to T-Mobile's price cuts thus far than the latter.
    • Thanks to the strong Q1 numbers, which come after T-Mobile added 1.645M total subs (869K branded postpaid) in Q4, the carrier now expects 2.8M-3.3M branded postpaid net adds in 2014, up from a prior 2M-3M. Cash capex is still expected to be in a range of $4.3B-$4.6B.
    • At the same time, T-Mobile's strategy continues taking a near-term toll on its bottom line: Adjusted EBITDA fell 26% Y/Y to $1.09B, and T-Mobile has cut its full-year adjusted EBITDA guidance to $5.6B-$5.8B from $5.7B-$6B. Adjusted EBITDA margin fell 400 bps Q/Q to 20%.
    • Service revenue rose 4.5% Y/Y to $5.34B. Branded postpaid churn fell 20 bps Q/Q and 40 bps Y/Y to 1.5% (a new record). ARPU fell $0.69 Q/Q to $50.01. "Simple free cash flow" (adjusted EBITDA - cash capex) was $141M, down from $357M in Q4 and $239M a year ago.
    • TMUS +7.6% thanks to the sub adds and a Bloomberg report stating Sprint has lined up financing for a bid. Sprint +6.2%. T-Mobile parent Deutsche Telekom (DTEGY) is up 2.9% in Frankfurt.
    | May 1, 2014, 8:01 AM
  • Apr. 30, 2014, 6:03 PM
    • Bloomberg reports Sprint (S) "plans to push forward" with a T-Mobile USA (TMUS) bid after lining up financing from six banks.
    • SoftBank's (SFTBF) Masayoshi Son is expected to "make a formal bid in June or July," according to one source. SoftBank is still reportedly talking to T-Mobile parent Deutsche Telekom (DTEGF) about who would run the post-merger company; outspoken T-Mobile chief John Legere is the top candidate.
    • While past reports have suggested financing will be available - Sprint is expected to absorb T-Mobile's $8.7B in net debt in the event of a deal - DOJ officials are apparently quite skeptical about the merits of a deal to merge the #3 and #4 U.S. mobile carriers.
    • Son has previously argued he would launch a massive price war if a Sprint/T-Mobile deal was cleared, and would also offer competitive home broadband services (could be easier said than done in high-density urban areas).
    • Sprint announced yesterday it lost 333K postpaid subs in Q1. T-Mobile, which reports tomorrow, has been faring better lately.
    | Apr. 30, 2014, 6:03 PM | 4 Comments
Company Description
Deutsche Telekom (OTCQX: DTEGY) is one of Europe's leading telecommunications and information technology service companies. Deutsche Telekom is also the parent company of T-Mobile USA, one of four national wireless carriers in the U.S., with 33.7 million customers. In Europe, we are Germany's... More
Sector: Technology
Industry: Telecom Services - Domestic
Country: Germany