News

Despite cost-cutting in the UK, US and Poland, Deutsche Telekom’s wireless subsidiaries are not performing favourably against their rivals.



T-Mobile UK remains a drain on its parent company Deutsche Telekom. At 4th place in the competitive UK mobile market, T-Mobile is trailing giants like Telefonica, France Telecom and Vodafone. Second quarter results showed that T-Mobile’s profit margin was down 2% to 17.3%, while Telefonica’s O2 recorded 25.8%.



Deutsche Telekom’s performance in the United States is limited by the fact that its networks do not support handsets like the iPhone, unlike its competitors Verizon Wireless and AT&T. T-Mobile USA’s operating profit decreased by 2.3% in the first half of this year.



Only the Polish business showed positive results, with the second quarter operating profit margin increasing by around 10% on first quarter figures, but this followed a 13% slash in operating costs.