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mocoNews.net - Communacopia: Deutsche Telekom CEO René Obermann: "Happy and Not Happy" With The iPhone

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Dianne See Morrison
mocoNews.net
Thursday, September 18, 2008; 10:00 AM

Apple's ( NSDQ: AAPL) 3G iPhone is both a blessing and a bane for Deutsche Telekom ( NYSE: DT), where in Germany it is the exclusive carrier of the gadget, while in the United States, it has to come up with alternative mobiles to the phone which is distributed by AT&T ( NYSE: T). "We're happy with iPhone in Europe, not so happy with the iPhone in the US," said Deutsche Telekom CEO René Obermann. He revealed that sales of the 3G iPhone has been "very strong," in Europe, selling some 250,000 units, of which 150,000 have sold in Germany since its July launch As with the original iPhone, buyers are taking out bigger tariff bundles, and are proving to be higher spending customers. They consume on average 25 to 30 times more data than other smartphone users. "So the UI and applications make a huge difference," said Obermann. In the US, T-Mobile tries to offer up a strong portfolio to rival the iPhone, including devices form HTC, RIM ( NSDQ: RIMM), and Samsung, with Obermann reminding the audience that next Tuesday T-Mobile would make an announcement on its HTC-made Android-based phone.

Other highlights from the interview:

-- Android Phone: Surprisingly little comment about the phone. Then again, Obermann perhaps did not want to give away too much before the Tuesday launch. He noted that it would "accelerate the dynamic of the mobile internet," and should see a bigger array of applications being developed. T-Mobile's Web 'n Walk mobile internet service will be displayed prominently on the phone, with more applications available underneath it. Obermann stated it was not T-Mobile's wish to produce any applications themselves, but that the model was to integrate new or existing ones.

-- 3G Rollout in the US: Making "strong progress" and expects to be in 27 markets by the end of 2008. On device side, getting more "attractive devices" such as Google ( NSDQ: GOOG) Android phone in its portfolio, which Obermann called an "important factor to success."

-- @Home Service: The service is "selling well," especially as consumers need only pay $10 additional on existing $39 tariff, making it "very attractive." Would not reveal any subscriber numbers yet. Obermann notes that the service is still a "fairly big opportunity" for T-Mobile, as 75 percent of American households still have a landline connection, which means "quite a substitution potential". Plus, according to Obermann, about 50 percent of those moving from one city or another, are at least considering dumping their land line. Higher cable penetration in the US also makes the @Home service more attractive in America than in Europe. Would not say if DT plans to bring service to Europe.

-- Competing with Verizon (NYSE: VZ) and AT&T: Has demonstrated that they could maintain growth as well as "grow beyond our fare share," despite being the smallest of the US's big carriers. Said they are doing well focusing on consumers and especially specific groups, such as families. Definitely not trying to be "everything to everyone". Moreover, able to leverage DT's global scale "very comfortably," and is "not being disadvantaged by anyone."

-- The One Euro Laptop: Seeing a lot of success with its One euro laptop promo in Europe. Obermann revealed that the model makes "a lot of sense," luring in "good customers" who take up "good tariffs. Plus, the subsidy is not that bad. While the service is stimulating good growth, will "see how it grows in Europe" before bringing to the US.


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