Deutsche Telekom, Europe’s largest telecommunications carrier, today held firm on its annual forecasts as strong first-quarter growth at its US mobile arm masked a weak domestic performance and slump in fixed line revenues.
It's achilles heal is weakness in Germany and a fast fading fixed telephony business (like every other major fixed line telco) which is eroding faster than broadband revenues are growing.
Duetsche seems to be going through a period of disappointment with analysts and investors which may be covering up their considerable progress in cellular. For T-Mobile is growing in the slower growth European markets as well as the higher growth US. And holding ground to the likes of Cingular and Verizon is indeed impressive.
The challenge for all telecom conglomerates with substantial fixed line operations is getting hi-speed out their quick enough and driving a triple or quadruple play against increasingly agggressive cable operators and start-up telco outfits. Deutsche needs to move faster.
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