Telekom DE build-out plans 2019, part 2: mobile densification, 5G, FTTH, FTTO, IoT

Deutsche Telekom's Telekom DE: build-out plans for 2019 (part 2):

Mobile

• 2k new base stations (o/w 300 in Bavaria, 250 in BW, 250 in NRW; focus on roads & railways; o/w half in rural areas)
• add small cells (mainly in Hamburg, Berlin, München; in public phones, lampposts, street furniture)
• additional 5G test sites (Darmstadt 19Q1; currently Port of Hamburg)

Fixed

• 60k km fiber (currently 500k)
• expand FTTH (61k HH in Bautzen, 47k in Märkischer Kreis, 45k in Sachsen, 30k in Stuttgart)
• upgrade 5m HH from <50 to="">50 Mb/s
• connect 140 business parks to FTTO

IoT

• expand NB-IoT (machine/sensor network) nationwide by end 2019 (currently 35k connected parking spaces, with Park & Joy app, x2 or x3 in 2019)

Orange BE 17Q4 highlights: Luxembourg impairment, underlying high growth

• Impairment Orange LU 17.9m
• MSR -3.3% (+2.9% excl MVNO impact, +6.7% excl MVNO & RLAH impact)
• Adj EBITDA -21% (-1.8% excl Wallon pylon deal; +11% excl Wallon deal & RLAH impact)
• Opex related to BB+TV 13.4m (~x2)
• Rev MVNO-loss impact (Telenet) 2017 on rev -9.1m (17Q4 -15.3m), RLAH impact -36.4m (o/w -8.4m in 17Q4)
• EBITDA impact MVNO-loss -7.5m, impact RLAH -7.3m
• Cable business 2017 EBITDA impact -18.5m
• NB-IoT & LTE-M nationwide
• Launches unlimited mobile data/voice/SMS plan 180212 (a first in BE)
• Targets 2018
• adj EBITDA 280-300m (incl MVNO loss impact -30m on rev [also lost Lycamobile, will lose VOOmobile]
• RLAH impact on rev -26m & on EBITDA -17m
• capex (excl cable) flat
• focus on oper efficiency
• mid-term BB market share target 10%
• div 2017 50c
• started using network data (dropped calls) to identify & target eligible residential customers for a femtocell
• Big Data for targeted network investments, churn mgt, rev assurance/fraud detection
• plans one-stop shop (fixed & mobile) for businesses, coop with Orange Business Services