Deutsche Telekom AG · XETR:DTE
Deutsche Telekom — Investor Day (February 2015)
22 slides from Deutsche Telekom's investor day presentation, Feb 26, 2015
Slide 1: Deutsche Telekom Capital Markets Day 2015
DEUTSCHE TELEKOM CAPITAL MARKETS DAY 2015 Bonn, February 26/27, 2015
Slide 2: Disclaimer
DISCLAIMER This presentation contains forward-looking statements that reflect the current views of Deutsche Telekom management with respect to future events. These forward-looking statements include statements with regard to the expected development of revenue, earnings, profits from operations, dep
Slide 3: DT superior production model
DT superior production model Claudia Nemat, Board member for Europe and Technology Bruno Jacobfeuerborn, CTO Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 3
Slide 4: Our strategy
our strategy LEADING EUROPEAN TELCO TECHNOLOGY LEADERSHIP BEST INTEGRATED WIN WITH LEAD IN CUSTOMER IP NETWORKS PARTNERS BUSINESS EXPERIENCE TRANSFORM PORTFOLIO EVOLVE FINANCIAL TARGETS & EFFICIENCY ENCOURAGE LEADERSHIP & PERFORMANCE DEVELOPMENT Group STRATEGY Cost and Portfolio Transformation Lead
Slide 5: Superior Production model with four programs based on technology leadership
Superior Production model with four programs based on technology leadership DIGITAL TRANSFORMATION OF CUSTOMER FACING PROCESSES COST EFFICIENCY & SIMPLICITY Annual run rate adj. ALL-IP TRANSFORMATION PAN-EUROPEAN NETWORK INTEGRATED NETWORK STRATEGY Opex savings: PAN 1 LTE roll-out NET PSTN migration
Slide 6: All IP Transformation: The creation of a simplified and standardized network
All IP Transformation: The creation of all ip pannet INS a simplified and standardized network FROM THE “OLD PSTN WORLD”… …TO THE “NEW IP ERA” Mobile Fixed Carrier Virtualized Service Platforms Infrastructure Cloud PSTN NG IP Network (BNG/TeraStream) Mobile Access Hybrid Fixed Access SIM CPE Mobile
Slide 7: All-IP transformation on track
All-IP transformation on track all ip pannet INS ALL-IP TRANSFORMATION BY COUNTRY Customer numbers in thd. Total fixed access lines IP access lines Remaining fixed access lines YE 2014 YE2014 and expected completion dates Macedonia 237 237 (100%) Jan 15th, 2014 Slovakia 894 894 (100%) EoY 2014 Croat
Slide 8: Pannet Target Picture 2020+: From NatCo-centric to Integrated Pan European Service production
Pannet Target Picture 2020+: From NatCO-CENtric all ip pannet INS to Integrated Pan European Service production TODAY FUTURE Complex service production Highly simplified, virtualized, with distributed vendor- IP-based production architecture specific network elements Different, historically grown In
Slide 9: Differentiation: holistic and radically lean approach at DT
Differentiation: all ip pannet INS holistic and radically lean approach at DT INFRASTRUCTURE CLOUD DRASTICALLY SIMPLIFIED IP NETWORK (BNG/TERASTREAM) Tight integration of data centers and IP network Executed in radically lean way IP network = Infrastructure Cloud, IP+ Optical Integration to lo
Slide 10: Pannet: simplified, centralized and virtualized
Pannet: simplified, centralized and virtualized all ip pannet INS LEGACY, HETEROGENEOUS, DISTRIBUTED WORLD… …TOWARDS A LEAN AND CLOUDIFIED APPROACH Customer Processes BSS decoupling Virtualized Network Functions fragmented, specific & Services Real-time HW/SW boxes per Network & centralized function
Slide 11: Physical infrastructure of pannet
Physical infrastructure of pannet all ip pannet INS DT EU PORTFOLIO: BROAD & ADJACENT FOOTPRINT IN EUROPE illustrative, locations and number of PANNET characteristics: backend data and network operations centers not decided yet 3 backend data centers ( ) 2 geo redundant network operations center
Slide 12: Local product configuration: central production catalogue
Local product configuration: all ip pannet INS central production catalogue illustrative TV BROADBAND VOICE OTT services ADSL 16 Mbps One standard line Central Production Standard Def. Vectoring 100 Mbps HD voice Catalogue High Definition Fiber 1 Gbps Multiple lines Country A Country B Country C Cou
Slide 13: MWC 2015: cloud TV & Gaming
MWC 2015: cloud TV & Gaming all ip pannet INS First time B2C products introduced at the same time in three countries TV, gaming and applications on all screens Cross-country recommendation engine Cloud gaming with premium catalog Your personalized guide through media world of casual and be
Slide 14: MWC 2015: Next Generation VPN
MWC 2015: Next Generation VPN all ip pannet INS First B2B product introduced at the same time in three countries Next generation DATA Virtual Private Network (VPN) for secure national and international communication Delivering a VPN solution from the Pan-European cloud developed in less than 6 m
Slide 15: Integrated network strategy
Integrated network strategy all ip pannet INS RECAP CMD 2012 OUR ENHANCED AMBITION 2015–2018 INS OUR ROLE MODEL INS rolled out across DT EU and DE COVERAGE EXPANSION 2015–2018 Mobile LTE1: DE: from 80% to 95% pop-coverage (with up to 300 Mbps) EU: from 30%–79% to 75%–95% pop-coverage (with up to 300
Slide 16: Mobile evolution continues
MOBILE EVOLUTION continues all ip pannet INS MOBILE NETWORK UPGRADE OPTIONS 5G ≥1Gbps Antennas (4x4) 600Mbps Carrier Aggregation 300Mbps LTE@20MHz 150Mbps Small Cells approx. x 25 Single RAN LTE (20+20MHz) x 12 Advanced Antennas LTE (20MHz) x 5–6 Cell Coordination UMTS Self Optimizing Network Group
Slide 17: Fiber evolution continues
fiber evolution continues all ip pannet INS FIXED H FTTH 1000+ Mbps B CO Fiber dp1 FTTdp1/FTTB – G.fast up to 500 Mbps FTTC – Super VDSL-Vectoring with more than 250 Mbps CO FTTC – VDSL-Vectoring up to 100 Mbps CO ADSL2+ up to 16 Mbps Fiber Copper 1 “Distribution Point”, so far not part of the Telek
Slide 18: Superior production model driving customer experience
Superior productION model driving customer all ip pannet INS experience Examples ULTIMATE APP All service and usage relevant information at glance Proactively offering data plans following customer usage patterns One-click payment for all fixed and mobile services ALL-IP TRANSFORMATION BROADBA
Slide 19: Significant investments into transformation yield superior differentiation and cost savings
Significant investments into transformation yield superior differentiation and cost savings in the future OPEX AND CAPEX: DIGITAL TRANSFORMATION, IP TRANSFORMATION, BENEFITS STEADY STATE FROM EARLY 2020IES PAN-EUROPEAN NETWORK1 FIN. BENEFITS: ≈ €1.2 BILLION OPEX SAVINGS2 € bn illustrative Segments
Slide 20: Mid term ambition level
Mid term ambition level Group STRATEGY Cost and Portfolio Transformation Lead in business Superior Production Model Europe Germany T-Mobile USA Finance 20
Slide 21: Mid term ambition level
Mid term ambition level all ip pannet INS MID TERM AMBITION LEVEL YEAR ALL-IP All integrated countries 100% IP-based 2018 TRANSFORMATION Backend and frontend data center set up 2018 PAN-EUROPEAN Geo-redundant Network Operations Centers established 2018 NETWORK Services fully migrated to PanN
Slide 22: Demonstration
DEMONSTRATION 1 ALL IP PANNET INS 2 ALL IP PANNET INS 3 ALL IP PANNET INS 4 ALL IP PANNET INS ALL-IP MIGRATION HYBRID ROUTER UPGRADED STREET CABINET BNG + INSTANT PROVISIONING Factor of miniaturization: 2,600x Significant increase in down- and VDSL-Vectoring rollout Simplification of network