Deutsche Telekom has presented a programme to cut Hellenic Telecommunications Organisation’s (OTE) running costs. This includes wages cuts, stated DT’s head in Southeast Europe in an interview.
DT wants to save its healthy business activity in Greece with drastic treatment, according to Financial Times Deutschland.
Guido Kerkhoff said that OTE΄s fixed telephony need radical and structural changes as payroll costs reach 37% of revenues while the same ratio for DT stands at just 20%.
Mr. Kerkhoff, also a member of OTE’s board, said he is currently in talks with the Greek government. This remains a major shareholder of OTE and the workers’ union on this issue.
The head of DT in Southeast Europe said that merging of fixed and mobile telephony has significantly reduced costs in countries such as Croatia, Slovakia, Hungary and Montenegro where the German group operates. The new joint companies will eventually adopt “T” as a brand sign, just as the operator has done in Germany with Telekom Deutschland.
OTE is the most “expensive” DT΄s investment in Southeast Europe as it spent nearly 4 billion in 2008 to acquire a stake of 30%, according to FT Deutschland.
Mr. Kerkhoff gave a very positive reference to the new chairman and CEO of OTE, Michael Tsamaz. The newspaper stated that Cosmote’s success and Tsamaz’s actions will eventually bring the desired changes to OTE.
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