1. CLUE Case Study
Deutsche Telekom: Entertain Pur
Connected Life Experiences at Home
Challenge/Opportunity
EXECUTIVE SUMMARY
Growth in subscriber adoption of IPTV services in Western Europe
COMPANY PROFILE
Deutsche Telekom, headquartered in has been phenomenal over the past few years. To capitalize on the
Bonn, Germany, is one of the world’s leading growing consumer demand for content via IP, Deutsche Telekom (DT)
telecommunications companies. It offers its
customers the entire spectrum of IT and launched the Entertain service through the company’s T-Home
telecommunications services from a single source.
service. Deutsche Telekom is also making substantial investment in
COMPANY HISTORY
building the network to be better able to support higher bandwidth
Deutsche Telekom was formed in 1996 as
the former state-owned monopoly Deutsche services such as high definition (HD) over IP.
Bundespost was privatized. As of June 2008,
the German government still holds a 15% stake
in company stock directly, and another 17% Recent Developments
through the government bank KfW.
Deutsche Telekom is now offering a “pure” Entertain TV service
without Internet connection. “Entertain Pur” costs EUR 27.95 per
month and comprises a telephone and TV connection. This service enables customers to telephone at low cost and
use the TV service and innovative functions of Entertain.
All Entertain customers will be able to download HD content from the online store Videoload. To receive HD content,
Entertain customers simply require an HD-compatible television set. All media receivers enabling Entertain reception
are equipped to handle high-definition images.
“We are going on an HD offensive, offering all Entertain customers
high-definition content on demand. With technical coverage of more
than 20 million households, Entertain is the largest sales platform
for HD content in Germany, and we will expand our offer consistently,
both in terms of the online video store and our range of channels.”
—Christian P. Illek, Member of T-Home Board of Management, Marketing Director of T-Mobile Deutschland
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2. CLUE Case Study
Alliances/Partnerships
A partnership between DT and EdgeCast, a global content delivery network (CDN), will leverage DT’s backbone
network for a joint CDN offering. EdgeCast, which specializes in video delivery, will use the partnership to decrease
the price of broadband usage in the areas where Deutsche Telekom has a backbone network.
Strategy
The partnership shows DT’s commitment to growing its IPTV service and its investment in serving the increased
consumer demand for higher bandwidth services going forward.
The Entertain Pur offer is aimed at customers who do not require an Internet connection, but who nonetheless place
great value on TV entertainment. This consumer group had been overpaying through bundling options that included
broadband, voice, and television.
Success Factors/Metrics/Monetization
The minimum subscription period for an “Entertain Pur” package is 24 months.
The Entertain offering has been a success for Deutsche Telekom, with 885,000 packages marketed by the end of
the previous quarter. The trend is well on its way to achieving the 1 million package mark for the full year. Adoption
of IPTV is poised to continue to increase in the near term.
“With ‘Entertain Pur,’ we offer telephone and TV from a single source,
reaching new user groups for our Entertain service,” continues Illek.
“Customers who are not interested in Internet services don’t have to
miss out on the innovative possibilities of Entertain any longer.”
—Christian P. Illek, Member of T-Home Board of Management, Marketing Director of T-Mobile Deutschland
Company Background
Deutsche Telekom serves nearly 150 million mobile customers, about 40 million fixed-network lines, and over
17 million broadband lines (as of June 30, 2009). Its product brands are T-Home (fixed-network telephony,
broadband Internet), T-Mobile (mobile communications), and T-Systems (ICT solutions). As an international group
with over 261,000 employees operating in about 50 countries worldwide (as of June 30, 2009), Deutsche Telekom
generated more than half of its revenue (EUR 61.6 billion) outside of Germany in 2008.
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3. CLUE Case Study
References
www.telekom.com/dtag/cms/content/dt/en/596270?archivArticleID=769150
www.fierceonlinevideo.com/story/edgecast-and-deutsche-telekom-form-cdn-partnership/2009-01-26
www.tradingmarkets.com/.site/news/Stock%20News/2704833
www.tradingmarkets.com/.site/news/Stock%20News/2697372
Printed in USA FLGD 08867 02/10
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