From global aspirations to regional dominance: the case of Deutsche Telekom

Abstract

Purpose – This paper aims to investigates the argument that the financial case for continued internationalisation by telecommunication companies is unclear with respect to Deutsche Telekom, a leading international telecommunications company. Design/methodology/approach – The international footprint of Deutsche Telekom is mapped over the period 1995-2013 (inclusive). Data are drawn from the annual reports of Deutsche Telekom as well as its principal subsidiaries. After mapping the international footprint, the financial dimension of this internationalisation is investigated to determine whether there are financial returns from continued international expansion. Findings – The results demonstrate the extensive and complex nature of the international footprint of Deutsche Telekom. The company operates in 38 countries through a variety of lines of business, with its systems division being responsible for almost half of these countries. Although international markets now account for a majority of the company’s revenues, the lack of consistent data means that it is not clear whether the financial returns from internationalisation are positive. Research limitations/implications – The paper highlights the challenges of using annual reports as a source of data, as well as the difficulties of mapping the international operations of large multinationals like Deutsche Telekom. Originality/value – The paper uniquely seeks to relate the international footprint of Deutsche Telekom to its financial performance.