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Deutsche Telekom was established, as a private stock company, in 1995, with the German government’s move to liberalise the telecommunications market in the country. Previously, telecommunications services were completely controlled by the state. In 1989, the government transformed postal, telegraph, and telephone services into businesses driven by market factors and thereby disintegrated the state’s monopoly operations into three separate entities, of which one was Deutsche Telekom’s predecessor.
Deutsche Telekom is Germany's incumbent national telecommunications operator, providing fixed-line, mobile, data, and Internet access services.
Since the beginning of 2005, the company has been pursuing its growth strategy under a new Group structure. Through its three strategic business areas - Broadband/Fixed Network, Mobile Communications, and Business Customers - the company is focusing on the main growth sectors of the industry, while at the same time sharpening its focus on specific customer segments.
Deutsche Telekom operates Europe’s largest fixed-line telephone network, through its T-Com subsidiary. Through its TMobile International and T-Online International subsidiaries, it operates mobile communications, mainly in Europe and the US, and Internet/multimedia businesses in Europe, respectively. Another subsidiary, T-Systems, is engaged in the provision of IT and outsourcing services to corporate customers worldwide.
Deutsche Telekom was partially-privatised in 1996. As of December 2004, approximately 62% of the company’s shares were free float, about 23% were owned directly by the Federal Republic of Germany, and around 15% were owned by the government-sponsored development bank, KfW. In July 2005, KfW announced that it had bought 7.3% of Deutsche Telekom, raising its stake to approximately 22.1%. The German government maintained an approximately 15% stake in Deutsche Telekom.
(T-Mobile International is profiled separately as part of the Network Operators Worldwide (NOW) service.)
