Deutsche Telekom tackles T-Mobile's problems

Michael Carroll and Dylan Bushell-Embling
28 May 2010
Daily News

Deutsche Telekom has revealed a new CEO for its T-Mobile USA business, as it looks to turn around the loss-making unit’s performance.

Current CEO Robert Dotson will step down early next year and be replaced by former T-Mobile Deutschland chief and current European CRO Philipp Humm, as the firm looks to halt falling revenues and subscriber losses at the division.

Sales fell 7.8% to €3.8 billion as the carrier lost 77,000 subscribers in the first quarter.

The lackluster result at what was once Deutsche Telekom’s cash cow followed a soft performance last year. Analysts says it is the result of increased competition based around the smartphone and mobile broadband in which T-Mobile’s aging infrastructure cannot compete.

Gartner analyst Katja Ruud told the change in management is long overdue. “It's certainly time for a strategy review,” Ruud said.

Humm turned around the performance of T-Mobile Deutschland during his time at the helm between 2005 and 2008.

He also has experience of the US market, gained during stints at McKinsey & Company, Proctor & Gamble, and Amazon.

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