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'Telekom plans to merge German fixed/mobile units - report'
[February 25, 2009]

'Telekom plans to merge German fixed/mobile units - report'

(DMeurope Via Acquire Media NewsEdge) Deutsche Telekom plans to bundle its German fixed network operations with T-Mobile Germany, according to the Financial Times Deutschland citing unnamed sources. The restructuring would mean that the CEO of the German operations will be responsible for around half of the current EUR 60 billion in revenues, becoming the second most powerful person within the Deutsche Telekom Group after Group CEO Rene Obermann.

The plans will be presented to Deutsche Telekom's supervisory board this week. The company did not want to comment on rumours ahead of its annual figures due 27 February. The main reason for the restructuring is not to cut jobs, but to create a formal structure for the increasing convergence between fixed and mobile. The restructuring plan is connected to the planned departure of current CFO Karl Gerhard Eick at the end of February, which provides an opportunity to restructure, by naming current fixed network boss Timotheus Hoettges as CFO. With regards to who will become the CEO of the merged German operations, several names are mentioned including T-Com manager Christian Illek as well as T-Mobile managers Philipp Humm and Georg Poelzl.

(Distributed for via M2 Communications Ltd ( Copyright ? 2009 M2 Communications Ltd.

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