The flywheel of Deutsche Telekom's strategy.

Strategy

Strategy

Company

Our strategy: Momentum for the Future

Deutsche Telekom AG has the strategic ambition to be the leading digital telecommunications company. As a reliable partner for customers, in society, and for the environment. With the help of AI and digitalization, we are gaining momentum for the future.

At the center of our strategy is the flywheel. It describes how Deutsche Telekom successfully positions itself in the market.   

The picture shows the current Telekom strategy in the form of a flywheel. All elements are explained in the text.

The flywheel is at centre of Deutsche Telekom's strategy. © Deutsche Telekom

  1. We invest – above all in the best networks. Customers should have the best network experience anytime, anywhere, whether on fixed or mobile networks, or with alternative access technologies. Fiber to the home (FTTH) in the fixed network and 5G in mobile communications are particularly important for this.   
  2. We are the most valuable telecommunications brand in the world. Our networks and products convince with quality. This is how we continuously win new customers. Currently, we serve 300 million worldwide. With our products, we support both private and business customers in their "digital lives and work." With additional offers such as in our “My Magenta App,” we offer our customers further advantages, turning them into fans. This is how we will continue to grow in the private and business customer segments in the future and tap into new revenue sources through our “Magenta Advantage.”   
  3. The large number of customers allows us to make full use of our networks and achieve economies of scale also in other areas of the company. For example, when we develop certain products for all customers worldwide, rather than in individual markets. This gives us an efficiency advantage.   
  4. As a result, we achieve solid financial results. These results put us in a position to make further investments. This, in turn, keeps our flywheel spinning.   

Digitalize, digitalize, digitalize 

Deutsche Telekom is gaining additional momentum from the topics of data and artificial intelligence, as well as from our position as a provider to the Western world, with strong pillars in Europe and the United States. 

We constantly measure our success with our customers to better understand their needs and offer new products and better services based on this. In doing so, we do not just compare ourselves to other telecommunications companies but to the best digital companies in the world. 

We use artificial intelligence throughout the company. For example, we are working with other companies to develop AI that can independently solve many of our customers' service requests and provide them with the right answer for their concerns. We always use AI in line with the ethical guidelines we have set for ourselves. 

At the same time, we are utilizing economies of scale and leveraging our global size. We are capitalizing on synergies through shared platforms, products, and workflows, such as a unified brand identity for the business customer segment in Germany and Europe with “T Business.” We are also creating an ecosystem that other companies can easily connect to. One example is the so-called “Network API,” standardized interfaces to functions provided by our network. Applications for this include guaranteed upload speeds for special services or the secure verification of a customer's identity based on their mobile phone number – for example, for banking transactions worldwide.   

Social Responsibility

Telekom acts long-term, solidly, and sustainably. It aligns its business so that the environment, climate, and social cohesion are protected. Telekom uses only electricity from renewable sources, saving four million tons of CO2 annually. Starting from 2017, we aim to reduce our own CO2 emissions by 95 percent (Scope 1&2) by 2025. By 2040, Telekom intends to be climate neutral across all scopes (- 90% reduction, maximum 10% climate compensation). Additionally, we are focused on a circular economy and are continuously increasing the return rate of used devices. 

Our brand, the “T,” stands for connection and cohesion. That's why we are committed, among other things, to combating “hate on the internet” and supporting institutions dedicated to digital education. Education is also a core concern of the Telekom Foundation. 

A strategy is only successful if it is supported by a culture and attitude that enables rather than hinders. That's what Deutsche Telekom employees stand for. We are passionate, diverse, and act responsibly. We want to be leading in everything we do, so that the leading parts become a leading whole. Customer satisfaction and outstanding quality are the best investments for this. We count on global strength, while being deeply rooted in the local communities in which we operate. This is how we grow. This is how we gain momentum for the future. 

Headquarters Deutsche Telekom

Deutsche Telekom at a glance

Deutsche Telekom is one of the world's leading integrated telecommunications companies. Key facts and figures.

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