T-Online faces shake-up from Deutsche Telekom

German Telecom operator Deutsche Telekom is considering splitting T-Online into an international division dedicated to managing its internet business.

German Telecom operator Deutsche Telekom is considering splitting T-Online into an international division dedicated to managing its internet business.

According to reports in the Financial Times, the new division, called T-Online International will be responsible for managing the telco's French ISP Club Internet, Spain's Ya.com and T-Online Germany. Henning Dransfeld, analyst at Ovum, claimed the move will enable Deutsche Telekom to exercise tighter controls over its internet activities. Dransfield said: "There has always been trouble between T-Online and the DT management. At the end of last month the whole T-Online management team left claiming there was too much interference from the parent company. He added: "If Deutsche Telekom goes down this route then it indicates that it thinks T-Online is getting too independent. There is a lot of friction." Dransfeld said T-Online International will report to Bonn and allow Deutsche Telekom to draft the international internet strategy. A spokesman for Deutsche Telekom said the claims were merely speculation and refused further comment.