IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

MWC 2012: Deutsche Telekom lays into regulators

The company’s CEO claims the demands from regulators are too high when they are actively cutting the revenues of telecoms firms with pricing intervention.

EC flag

Regulators are asking for too much from telecoms companies, whilst contributing to their slowing revenues.

These were the remarks of Rene Obermann, chief executive of Deutsche Telekom, during a keynote speech at Mobile World Congress in Barcelona.

We have embarked on a long-term vision to look at the company through the eyes of the consumers and make them more of a focus.

The industry leader attacked regulators, such as the European Commission, for asking telecoms firms to invest more money into networks, even though orders they have voted through have damaged profits for the likes of Deutsche Telekom.

"Despite an enormous competitive market, revenues have still [shrunk]. We need high performance networks, therefore regulators should be supportive," claimed Obermann.

"[Instead] they still continue to take a fantastic amount of money out of the network industry, whilst at the same time forcing or desiring companies to put in investment into next generation networks."

The CEO claimed operators were paying "billions" for licenses from regulators and throwing a lot of cash into networks, but are losing money as well thanks to new rules around termination rates and roaming charges.

"So operators pay billions for licenses, but at the same time they lost billions on the direct pricing interventions of regulators," said Obermann. "I suspect [revenues] will come down further, that is reality."

Despite this very corporate-focused attitude, Obermann still claimed there had been a change in the telecoms industry, with a much stronger focus on customer service and satisfaction.

"In the past, customer friendliness for telcos meant the customer had to be friendly to us," he joked. "That is something we all are guilty of; we never really had the focus on customer needs."

"But, with our company at least, we have embarked on a long-term vision...to look at the company through the eyes of the consumers and make them more of a focus," he said.

Featured Resources

The state of Salesforce: Future of business

Three articles that look forward into the changing state of Salesforce and the future of business

Free Download

The mighty struggle to migrate SAP to the cloud may be over

A simplified and unified approach to delivering Enterprise Transformation in the cloud

Free Download

The business value of the transformative mainframe

Modernising on the mainframe

Free Download

The Total Economic Impact™ Of IBM FlashSystem

Cost savings and business benefits enabled by FlashSystem

Free Download

Recommended

Podcast transcript: The best bits of MWC 2022
Technology

Podcast transcript: The best bits of MWC 2022

11 Mar 2022
The IT Pro Podcast: The best bits of MWC 2022
Technology

The IT Pro Podcast: The best bits of MWC 2022

11 Mar 2022
IT Pro News In Review: Compromised Nvidia data, protesters boycott Russian tech, Conti data breach
hacking

IT Pro News In Review: Compromised Nvidia data, protesters boycott Russian tech, Conti data breach

4 Mar 2022
MWC 2022: Ukrainian protesters call for Russian tech boycott
cyber warfare

MWC 2022: Ukrainian protesters call for Russian tech boycott

1 Mar 2022

Most Popular

Why convenience is the biggest threat to your security
Sponsored

Why convenience is the biggest threat to your security

8 Aug 2022
How to boot Windows 11 in Safe Mode
Microsoft Windows

How to boot Windows 11 in Safe Mode

29 Jul 2022
Microsoft successfully tests emission-free hydrogen fuel cell system for data centres
data centres

Microsoft successfully tests emission-free hydrogen fuel cell system for data centres

29 Jul 2022