Deutsche Telekom Targets Mobile Payments with an NFC-based launch

| Feb 16, 2011 | Consumer Services Europe | Analyst: Natasha Rybak

Click here

Event Summary

February 15, 2011 -- Deutsche Telekom will launch a near-field communications (NFC)-based mobile wallet service in Germany and Poland in 2011, with the Netherlands, the Czech Republic and the US to follow in 2012. Mobile payments will be enabled both for Deutsche Telekom’s own services as well as for third parties such as banks, transport companies and event organisers.

Quick Take

Analytical Summary

• Current Perspective: Moderate on Deutsche Telekom’s planned European mobile wallet launch, because it holds the potential of opening up new revenue streams for the operator, as well as multiplying daily touch points with Deutsche Telekom’s clients. The move will thus help cement brand recognition and customer loyalty, as well as offering the possibility for new advertising business, increased ARPU and reduced churn.

• Vendor Importance: Moderate to Deutsche Telekom, because many of its major competitors have also announced, piloted or deployed mobile payments solutions in various European countries. The German incumbent needs to launch its own offerings in its major operational markets in order to stay on par with rivals and avoid losing out on the opportunities presented by mobile payments in general and NFC-based contactless payments in particular.

• Market Impact: Moderate on the European mobile payments market, because Deutsche Telekom is essentially coming out with similar launch plans to those of competitors (albeit in some differing country markets). All of the major mobile players in Europe are moving in on the mobile payments space to some degree, and the field remains nascent and wide open, with no single operator having yet taken a definitive lead in deployment or business modelling.

For related information and analysis, please see NFC, or New-Fangled Collaboration, December 28, 2010, and Everything Everywhere Plans Mobile Contactless Payments Push, January 27, 2011.

CLIENTS ONLY

Current Perspective

| Client access - Full report in Consumer Services Europe | More information

Top

Top