The largest European telecommunications operator, Deutsche Telekom, plans to merge its fixed-line unit with its mobile operations, following the example of Swisscom, German media reported on Wednesday.
Deutsche Telekom is expected to reorganize its business operations by geographical zones but there will be no layoffs, according to the business daily Financial Times Deutschland, citing sources close to the company. In the fixed-line business segment, this giant of German telecommunications has been experiencing a decline in the number of users for several years, and parts of its fixed and mobile telecommunications business account for about half of its annual revenue of 60 billion euros, the FTD report states. The business daily Handelsblatt from Düsseldorf adds that Deutsche Telekom’s T-Mobile units abroad should remain independent. Deutsche Telekom did not wish to comment on these reports. (H)
