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For CIOs

Deutsche Telekom: Your Partnership Options For T-Systems Are Limited

August 3, 2007

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Why Read This Brief

Deutsche Telekom's CEO René Obermann is under heavy pressure to show that he is taking rapid action to boost profitability. One action item on the agenda pertains to seeking a strategic partner for T-Systems, the company's enterprise communications and IT services business unit. While the aim of such a partnership, according to Obermann, is to expand T-Systems' international footprint and scale, he did not provide details on the exact terms and parameters for the desired outcome — adding only that the form of the partnership would "depend on the opportunities that arise." Forrester has examined the opportunities that currently exist and has found that there are only two options that would ultimately provide real strategic value: entering T-Systems into a joint venture with a competitor or keeping T-Systems.

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