...Strong Incumbent Positions: As an incumbent operator, Deutsche Telekom, AG (DT), benefits from strong domestic positions in a market that has proven one of the most resilient in Europe. Fitch Ratings does not expect additional market share pressures. The incumbent's strategy of accelerated capex into fibre upgrades/vectoring and LTE roll-out improves the company's competitive positions with positive implications for the top line. Pressures Across Europe: Nearly all of DT's European countries of operations have suffered from macroeconomic weakness to varying degrees which translates into poor financial performance. DT has been able to generally withstand competitive pressures performing on a par with, or better than its peers. However, this has not been enough to reverse its declining financial performance. Fitch anticipates the continuation of at least moderate pressures in the mid-term. US Operating Turnaround, Challenges: After a merger with MetroPCS, T-Mobile USA emerged as a stronger...
