BUSINESSWEEK ONLINE : DECEMBER 4, 2000 ISSUE
INTERNATIONAL -- EUROPEAN COVER STORY ONLINE EXTRA: CEO Sommer: 'We Are Very Much Misunderstood' For five years, Ron Sommer has been trying to fashion Deutsche Telekom from a division of a government ministry to a global telecommunications powerhouse. Recently the 51-year-old CEO spoke with BusinessWeek Frankfurt Bureau Chief Jack Ewing about what he's achieved, and what remains to be done. Here are some excerpts: On globalization: We always recognized that competition in our industry could never be waged solely at the local level. Because the competitors ultimately would be global players. We have been proven right. On priorities: Last year, the big effort was on globalization. Next year, because we have to digest the globalization effort, it will emphasize quality even more and the realization of the benefits of this recent activity. Once we have integrated these new businesses, we can then go to the next step of globalization. On acquisition of VoiceStream in the U.S.: It gives us an absolutely unique position in the global mobile market. We will be the only GSM-standard [global system for mobile telecommunications] operator in the U.S. It's a market that's going to grow more in the next four years, in absolute terms, than Germany, France, Italy, and Spain together. On public perceptions: We are very much misunderstood. If we don't buy companies, it means, oh, you've changed your strategy. No, we haven't changed our strategy at all. We're doing things in a way that is manageable and financible. We see today too many companies who forgot that financing is part of business life. On share declines: I have said since our initial IPO in 1996: We are not working for the speculators. We are working for the long-term investors. And yes, this year was especially a volatile year. There's no question. But we have a good long-term strategy, we are executing, and, as a result, I believe the share price will reflect that. On profit: Over the last five years, we experienced a dramatic hit on the bottom line as well as on the top line because of market changes in the old business of selling minutes [of phone use]. But that's behind us. We are gaining market share, we are not losing market share.... Fortunately, we have tremendous nonstrategic assets, the sale of which give us huge net profit this year and next year and the year after that. On changing Deutsche Telekom culture: Are we where we want to be? Not yet. But this is true of many companies that did not have the history of being a bureaucracy. The cultural change is [a] never-ending story. We fought very hard to get rid of this bureaucratic culture. If somebody tries to bring this back to the company for personal reasons or whatever, he's gone. That's when I really go ballistic. And I'm really brutal. On management style: All these discussions about T-Online [DT's Internet unit], this whole nonsense that was out there, how much did Ron Sommer interfere...it's the reverse. My search is for noninterference, because that means excellent management. On stress: I sleep well at night, but always short. Five hours or six hours, it depends. I think you need good health for this job. _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Deutsche Telekom's Embattled Boss (int'l edition) COVER IMAGE: Deutsche Telekom's Embattled Boss CHART: Deutsche Telekom's Hard Year TABLE: The $80 Billion Spree ONLINE EXTRA: CEO Sommer: ``We Are Very Much Misunderstood'' ONLINE EXTRA: CFO Eick: ``A Huge and Incomparable Transition Period'' ONLINE EXTRA: Global Business Chief Hedberg: ``It's Not Just Winning the Deal'' INTERACT E-Mail to Business Week Online

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