Businessweek

Deutsche Telekom AG provides a range of telecommunications and information technology services worldwide. SERVICES Fixed-Network and Mobile Communications Services Fixed-Network Services The company’s fixed-network business includes voice and data communications activities based on fixed-network and broadband technology. These product offerings are marketed as basic telephony services, or single-play, telephony and high-speed Internet access, or double-play, and packages comprising voice communication, high-speed Internet access and television with interactive television-based services, or triple-play. The company’s fixed-network business also includes the sale of terminal equipment and other hardware, as well as the sale of services to resellers. Mobile Communications Services The company’s mobile communications business offers digital mobile telephony voice services and data services, such as Short Message Service (SMS), Multimedia Messaging Service (MMS), mobile Internet, and other data services, to retail and business customers. Terminal equipment and other hardware are sold in connection with the services offered. In addition, its mobile communications services are sold to resellers and to companies that buy network services and market them independently to third parties, such as mobile virtual network operators (MVNOs). Through its mobile communication subsidiaries, the company also operates a carrier-owned network of W-LAN (WiFi) HotSpots in Europe and the United States. Sales Channels The company’s Germany and southern and Eastern Europe operating segments offer their fixed-line and mobile products and services through a range of direct and indirect sales channels. The direct distribution channels include its retail outlets, including its Telekom shops in Germany, and throughout southern and eastern Europe, such as OTEShops, Germanos and Cosmote shops in Greece and T-Home Shops in Hungary; toll-free service hotlines that allow potential and customers to obtain information about, and place orders for, its various products and services; various Internet Web sites, which provide various online ordering options; and sales force. Indirect distribution channels include national retailers and independent distributors, such as Internet and IT equipment retailers. In addition, its mobile communications subsidiaries in Europe and the United States use various direct and indirect distribution channels to market their voice and data products and services to their customers. In the United States, the United Kingdom, Austria, Poland, the Netherlands and Czech Republic, its mobile communications subsidiaries sell their products and services to retail customers through networks of direct retail stores, including franchise-like dealer operations. Suppliers The company's major suppliers to its fixed-network operations are Siemens AG; Deutsche Post DHL; Alcatel-Lucent Deutschland AG; Grey Global Group (MediaCom); AVM Computersysteme; Cisco Systems Inc.; Corning Cable Systems GmbH & Co. KG; and IBM. SEGMENTS The company operates in five segments Germany; United States; Europe; Southern and Eastern Europe; and Systems Solutions GERMANY The Germany operating segment comprises its fixed network and mobile operations in Germany. The fixed network has been responsible for the small- and medium-sized business customers. The Germany operating segment also includes certain of its telecommunications facilities operations, including the operation, management and servicing of its radio transmission sites in Germany. Fixed Network Network Communications Through its fixed network business, the company offers network access, including analog, universal/ISDN and IP Access, as well as calling services to individual, business, and wholesale customers. Analog access lines, which the company markets under the name ‘Standard’, permits the customer to use a single telecommunications channel for voice, data or facsimile transmission. ISDN/Universal access lines, which the company markets under the name ‘Universal’, which permit a customer to use simultaneously two telecommunication channels to provide