Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  Equities  >  Xetra  >  Deutsche Telekom AG    DTE   DE0005557508

DEUTSCHE TELEKOM AG

(DTE)
  Report
SummaryQuotesChartsNewsRatingsCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsPress ReleasesOfficial PublicationsSector newsMarketScreener StrategiesAnalyst Recommendations

Exclusive: Deutsche Telekom freezes 5G deals pending Huawei ban decision

share with twitter share with LinkedIn share with facebook
share via e-mail
0
12/04/2019 | 01:58pm EST
FILE PHOTO: Signal strength of Deutsche Telekom 5G displayed on a mobile device at the IFA consumer tech fair in Berlin

Deutsche Telekom has put all deals to buy 5G network equipment on hold, it said on Wednesday, as it awaits the resolution of a debate in Germany over whether to bar Chinese vendor Huawei on security grounds.

Europe's largest telco finds itself in a tight spot after senior lawmakers in Chancellor Angela Merkel's coalition rebelled and called for a ban on Huawei, which is a key vendor for its existing mobile networks in Germany and Europe.

At the same time in the United States, a $26 billion deal for Deutsche Telekom's T-Mobile unit to merge with Sprint hangs in the balance. More than a dozen U.S. states have sued to block the merger and a New York judge will hear the case on Dec. 9.

Washington imposed an export ban on Huawei in May and called on allies to follow suit, alleging the global network market leader's gear was insecure and that it was beholden to Beijing - concerns highlighted by President Donald Trump on Wednesday at a NATO summit in England.

While Huawei has denied the U.S. allegations, any sign that Deutsche Telekom is doing fresh business with the Chinese company risks undermining the U.S. deal's chances of getting over the finishing line.

"In light of the unclear political situation, we are not currently entering into any 5G contracts - with any vendor," Deutsche Telekom said in response to a request for comment from Reuters. "We are currently informing vendors of this."

HIGH-LEVEL MEETING

According to one industry source, who requested anonymity, Deutsche Telekom board member Claudia Nemat recently met Huawei Deputy Chairman Eric Xu for talks on the business relationship between the two companies.

Deutsche Telekom declined to comment on specific meetings, nor would it say what share of its 5G investment budget Huawei could count on in future. "It's well known that Deutsche Telekom relies on multiple vendors for reasons of security," it said.

A Berlin-based spokesman for Huawei declined to comment.

Merkel had backed a proposed regulatory framework that would not impose blanket bans on any one provider but instead subject the technology and governance of all vendors to scrutiny.

She has estimated that Huawei accounts for 70% of Germany's existing mobile networks, a share that she expects to fall in future, to the benefit of European competitors Nokia and Ericsson.

Senior lawmakers in Merkel's Christian Democratic Union have objected, however, pushing through a resolution at a recent party conference to add some form of parliamentary scrutiny to the oversight regime.

Merkel's junior coalition allies, the Social Democrats, have also backed calls for a tougher regime. Foreign Minister Heiko Maas is now proposing legislation to create a "politically legitimated body" to oversee 5G security, news weekly Die Zeit reported on Wednesday.

Super-fast 5G networks, just starting to be rolled out in Germany and other European countries, are expected to run billions of connected devices and sensors in homes, offices and factories. That makes security and control over them far more critical than in earlier iterations of the technology.

Deutsche Telekom has already launched 5G in a handful of German cities, with its rollout in Berlin based on a pilot project there with Huawei. It plans to expand coverage to 20 cities next year, while warning of the impact of holdups.

"We hope that we will get political clarity for Germany's 5G buildout as soon as possible, so that we do not fall behind," Deutsche Telekom said.

(Additional reporting by Foo Yun Chee and Tarmo Virki; Editing by David Goodman/Keith Weir)

By Douglas Busvine

Stocks treated in this article : Deutsche Telekom AG, Ericsson AB, T-Mobile US, Nokia Oyj
Stocks mentioned in the article
ChangeLast1st jan.
DEUTSCHE TELEKOM AG 0.29% 14.704 Delayed Quote.0.67%
ERICSSON AB -7.90% 77.5 Delayed Quote.3.68%
NOKIA OYJ -0.07% 3.667 Delayed Quote.11.45%
T-MOBILE US -0.36% 82.18 Delayed Quote.4.79%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on DEUTSCHE TELEKOM AG
01/22EXPLAINER : As Britain decides, Europe grapples with Huawei conundrum
RE
01/22EU nations can restrict vendors under new 5G guidelines, Huawei at risk
RE
01/21Merkel ally sees growing German support for tough Huawei stance
RE
01/20Merkel seeks to delay German Huawei position until after March EU summit - so..
RE
01/15EXCLUSIVE : India plans new law to protect foreign investment - sources
RE
01/15India plans new law to protect foreign investment - sources
RE
01/15Deutsche Telekom launches fibre-optic joint venture in northwest Germany
RE
01/13Deals by major suppliers in the race for 5G
RE
01/10Nokia Highlights Momentum with 63 Commercial 5G Deals
AQ
01/09DEUTSCHE TELEKOM : Appoints New Chief Brand Officer
DJ
More news
Financials (EUR)
Sales 2019 80 079 M
EBIT 2019 11 220 M
Net income 2019 3 980 M
Debt 2019 78 116 M
Yield 2019 4,09%
P/E ratio 2019 17,2x
P/E ratio 2020 13,7x
EV / Sales2019 1,84x
EV / Sales2020 1,75x
Capitalization 69 562 M
Chart DEUTSCHE TELEKOM AG
Duration : Period :
Deutsche Telekom AG Technical Analysis Chart | MarketScreener
Full-screen chart
Technical analysis trends DEUTSCHE TELEKOM AG
Short TermMid-TermLong Term
TrendsNeutralNeutralNeutral
Income Statement Evolution
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 20
Average target price 16,86  €
Last Close Price 14,67  €
Spread / Highest target 32,9%
Spread / Average Target 14,9%
Spread / Lowest Target -17,5%
EPS Revisions
Managers
NameTitle
Timotheus Höttges Chairman-Management Board & CEO
Ulrich Lehner Chairman-Supervisory Board
Christian P. Illek Chief Financial Officer
Claudia Nemat Head-Technology & Innovation
Michael Sommer Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
DEUTSCHE TELEKOM AG0.67%76 797
VERIZON COMMUNICATIONS-1.45%250 256
NIPPON TELEGRAPH AND TELEPHONE CORPORATION2.61%94 106
SAUDI TELECOM COMPANY SJSC--.--%49 691
BCE INC.3.96%42 980
SINGAPORE TELECOMMUNICATIONS LIMITED-1.47%40 315