Analysis of Deutsche Telekom AG and France Telecom SA Joint Venture Essay

Analysis of Deutsche Telekom AG and France Telecom SA Joint Venture Essay

Length: 2984 words (8.5 double-spaced pages)

Rating: Term Papers

Open Document

Essay Preview

Orange S.A., a subsidiary of France Télécom, is a multinational telecommunications firm with over 170,000 employees, serves more than 230 million customers worldwide, and has revenue of 44 billion Euros as of 2013 (Orange 2014). T-Mobile, a German telecommunications subsidiary of Deutsche Telekom AG, has over 240 million customers worldwide and is tenth largest mobile phone company in the world (Telekom 2014).
On September 8, 2009, Deutsche Telekom AG and France Telecom SA announced their plan to pursue a joint venture with their T-Mobile and Orange subsidiaries. Orange UK and T-Mobile UK became largest communications company in the UK, under the umbrella brand, Everything Everywhere, officially on July 1, 2010 (Orange 2014).
2. What was the benefit that both companies expected from the merger?
The benefit of the merger between T-Mobile and Orange was to become the biggest mobile network provider in the UK with 28 million customers and 37% of the market, leapfrogging rivals O2 and Vodafone. This JV offered Deutsche Telekom a solution to its problems in the UK, where T- Mobile was in fourth place and had been underperforming compared to its rivals. It also allowed Orange to improve its margins by sharing its wireless assets with T-Mobile .
In this industry, companies need to provide a national network, meaning that there are significant economies of scale to be made with a merger. For example, when T-Mobile and Orange decided to merge, their ambition was to combine both networks, eliminate duplication and create a single super-network. Furthermore, they said it would provide the customers with a bigger network and better coverage .
3. Describe the relevant products/services and markets, which may be affected by this concentratio...

... middle of paper ...

...ubmitted a revised set of commitments, including the recommendations of OFT (Office of Fair Trading) and OFCOM (Federal Office of Communication). The first set of commitments was not concise to the competitors’ concerns, specifically related to spectrum purchasing decisions. On February 25th, a second set of commitment was established and the conditions were related to:
(i) 3UK's position on the market
The commission saw the risk that if the merger erodes the 3G RAN sharing agreement, it might remove 3UK as an effective competitor in the UK.
Orange and T-Mobile sign an agreement with 3UK to avoid this problem .
(ii) The concentration of spectrum in the 1800MHz band
According to the 1800MHZ, the Commission concludes that the merger would have a dominant position in that market. T-Mobile and Orange would have to give full radio access network sharing agreement to 3UK.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

Essay about Deutsche Telekom Telecommunications Company

- ... These capabilities so important when they are able to combine their resources which create core competencies lead to competitive advantage. Products and services in DEUTSCHE TELEKOM are valuable by means, it is able to neutralize threat and exploit opportunities especially from the other companies such as, Clarnet and Freenet Company (major competitor). Besides that, it capabilities which are not possess by other lead them in front of others. Furthermore, it products and services is costly to imitate....   [tags: business/marketing strategy]

Term Papers
2129 words (6.1 pages)

Deutsche Telekom’s Diversity Program Essay

- Change in an organization is inevitable and crucial to its growth, success, and survival. “For years, Deutsche Telekom has been one of the largest vocational training provider in Germany” (Telekom). The company is committed in improving its image and value by generating opportunities and possibilities through greater diversity at a higher organizational level. Their plans to bring more women into management positions includes: increasing their recruits for female university graduates, designating a quota of at least 30 percent for women in leadership roles, expanding its parental-leave programs, introducing more flexible working hours for managers, and extending of the numbe...   [tags: social issues, diversity, change]

Term Papers
982 words (2.8 pages)

Essay on Joint Function "Sustainment" and Operation Overload

- Introduction War finds success and failure inescapably linked to how well the Combined, Joint, and Multinational Commander ensures the Joint War Fighting Function “Sustainment” planning is linked to strategic, operational and tactical objectives. General Eisenhower’s Operation OVERLORD, the Allied cross channel, air, and seaborne invasion of France during World War II provides an excellent case study to show successful integration of the principles and the spirit of the Joint War Fighting Function “Sustainment.” OVERLORD required synchronizing, coordinating, and integrating the logistics capabilities of coalition forces, their equipment as well as civilian manufacturing capabilities to meet...   [tags: logistics, invasion of france]

Term Papers
1834 words (5.2 pages)

Joint Research and Development Project Essay

- Joint R&D projects in their development and organization are supported within a network structure, that is, in a set of partners connected by a set of ties (Borgatti and Halgin, 2011). The partners can be firms and institutions of at least four different countries national or international firms and institutions, and the ties that connect partners serve as the “pipes” through which information flows (Podolny, 2001). Joint R&D projects, therefore, constitute a network structure in which each partner is considered a node of the network, and network ties represent the relationship of collaboration in the development of the joint project....   [tags: joint r&d, network project, diversity]

Term Papers
796 words (2.3 pages)

Essay on Creating a Joint Venture

- When Cross Border Mergers or Acquisitions happen the participating organizations need to understand the issue of differences in national cultural issues very well in order to set up a successful Joint Venture (JV). Each country has a different national culture and this needs to be recognized and addressed because it will ultimately impact upon the work culture of the fusion organization they are newly going to form. Geert Hofstede developed a model which seeks to understand how values in the work place are influenced by culture....   [tags: International Business Joint Venture India]

Free Essays
1778 words (5.1 pages)

The Knee Is The Largest Joint Of The Body Essay

- The knee is the largest joint in the body; the joint is vital in supporting an individual when performing functional movements such as walking, running and jumping (Hamill, Knutzen and Derrick, 2014). A ligamentous tissue capsule surrounds the joint, supporting the structure of the synovial membrane. The fluid produced from the synovial membrane lubricates the knee. The synovial fluid and the infrapatellar bursa – designed to cushion external forces acting on the joint - allow the joint to move smoothing during activity (Hamill et al., 2014)....   [tags: Knee, Anterior cruciate ligament, Ligament, Joint]

Term Papers
800 words (2.3 pages)

France: All Things Charming Essay

- As Cole Porter once sang “Only in Paris one discovers the urge to merge with the splurge of the spring” (LyricsFreak), the French have always had a “je ne sais quoi” about them, an unforgettable charm and an unrepentant tendency for overindulgence that makes their footprint in the fields of architecture, cuisine, art, fashion and even war, ever so lasting. From Coco Chanel’s simple designs to Victor Hugo’s enchanting prose to Claude Monet’s detailed paintings, it is clear that the French have an unmeasured value for artists, innovators and people who appreciate the intrinsic value of beauty....   [tags: France]

Term Papers
1186 words (3.4 pages)

Deutsche Lufthansa AG Essay

- Deutsche Lufthansa AG is one of the leading airlines on the globe. It was founded in 1926 as Luft Hansa. It is also the national carrier for Germany. For many, the name Lufthansa is synonymous with flying and aviation. However, the brand is a paradigm of many businesses under one company. Most of these businesses are centered on the aviation industry. However, the core activity of the firm entails passenger transportation. The firm has heavily invested in this and has several airlines in various regions of the world....   [tags: Analysis]

Term Papers
1634 words (4.7 pages)

Telekom Malaysia Expansion Essay

- The Internet Infra-structure The internet usage is growing very rapidly in Malaysia in the recent years. The internet is well-known as JARING (Joint Advanced Research Networking) in Malaysia. Currently, MIMOS (Malaysian Institute of Microelectronics Systems), a governemt agency is overall maintaining and responsible for the the network backbone for JARING. Due to the rapid growth, the director-general of MIMOS Dr Tengku Mohamed Azzman Shariffadeen has made a press statement lately that under the Seventh Malaysia Plan, the speed of the network will be upgraded to about 20 to 300 times....   [tags: Malaysia Internet Business]

Free Essays
1617 words (4.6 pages)

Deutsche Bank AG Essay

- Walker, M. (October 23, 2000). Deutsche Bank Plans to Make Its Retail Unit A Stock Outlet. The Wall Street Journal (pg A29-30) This article is about Deutsche Bank AG tried to sell its retail business in order to concentrate on corporate and investment banking six month ago and it is now working on a plan to change its retail unit into a pan-European outlet for stocks, mutual funds and other investment products. Today, top executives of the world's largest bank by assets, Deutsche Bank, are going to present their new ideas to their supervisory board....   [tags: essays research papers]

Free Essays
562 words (1.6 pages)