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Telekom with record loss of 28 billion euros

Telekom with record loss of 28 billion euros

As the 'Handelsblatt' reports in today's edition, Deutsche Telekom AG will make a record loss of around 28 billion euros by the end of the year. The largest share was due to the expensive UMTS licenses and the purchase of various subsidiaries totaling 20 billion euros.

In addition, there is an estimated 8 billion euros in losses from operational business. DTAG is making the biggest loss in its corporate history.

According to Telekom, the US subsidiary 'VoiceStream 'however, cannot be sold. According to the Handelsblatt, the company should 'get out of the red just through drastic savings and price increases.

The basis of the austerity package is primarily the already decided reduction of up to 50,000 jobs by 2005, and the cancellation of the dividend for the Shareholders this year and the cut in investments by 2 billion euros, the Handelsblatt reports.

According to economic experts, the subsidiary 'VoiceStream', which is burdening Telekom with 35 billion euros, is to blame for the Miesère , but should only be worth half the amount.