Deutsche Telekom AG - The 2009 financial year

The Wholesale Services unit serves other German network operators and service providers as well as internal customers, supplying them with upstream and other services from various product segments, such as access, interconnection, IP data, and network services. Network operators and service providers implement their own business models based on Deutsche Telekom’s wholesale services, such as unbundled local loop (ULL) lines, bitstream access or resale, including the Wholesale Internet Access (WIA) and WIA Gate product options. The service platforms of the German fixed network offer a wide range of voice, video, and data services plus other value-added services for consum- ers, business, and corporate customers, though capital spending remains focused on IP-based technologies for the network infrastructure. These investments, which began in 2005, are preparing the ground for the roll-out of the Next Generation Network (NGN). As Deutsche Telekom is still obliged to provide services for customers who use the PSTN (Public Switched Telephone Network), the corresponding parts of the existing network infra- structure must be used alongside the NGN. In Germany, Deutsche Telekom already supplies around 1,000 towns and cities with ADSL2+ and, in the 50 largest cities, it also offers services via its VDSL infrastructure. As it continues to expand the infrastructure, the Group is increasingly looking to cooperation models with local authorities and competitors. In 2009, 722 cooperation agreements with municipalities and capacity expansion as part of the scheduled network build-out added the scope to connect around 374,000 additional households to the broadband network. Deutsche Telekom opened up its VDSL network to competitors even before being required to do so by the regulator and is planning collaborations to roll out fiber-optic access networks in German cities. Mobile communications. In order to make connected life and work as easy as possible any time and any place, T-Mobile Deutschland is system- atically improving its network performance and extending corresponding bandwidth coverage on a demand-oriented basis. T-Mobile Deutschland is working intensively on the further development of the NGMN (Next Generation Mobile Network), the network technology of the future. This new technology will support transmission rates that are five to ten times higher than HSDPA and HSUPA. One potential NGMN technology is LTE (Long- Term Evolution), which can reach data download speeds of up to 170 Mbits/s. T-Mobile Deutschland gave live demonstrations of the power of LTE in the 2009 financial year. T-Mobile Deutschland introduced a number of quality improvements for the Mobile TV service in spring 2009. The technical platform now offers five different quality profiles that allow the video stream to be geared to the features of the mobile device used and the cell’s current bandwidth, thus achieving clearly higher image and sound quality. T-Mobile Deutschland is the only network operator in Germany to broadcast all first- and second- division Bundesliga soccer matches live to mobile handsets with its LIGA total! service. T-Mobile Deutschland is setting the pace in the field of double play, with the Complete and Combi calling plans offering flat rates for telephony and mobile high-speed Internet access. These integrated voice/data rates give customers maximum convenience and cost control. The outstanding acceptance of the current calling plan portfolio is helping Deutsche Telekom build up high-value customer relationships. Alongside traditional cell phones and smartphones, netbooks with integrated mobile communica- tions technology and USB modems are key products for mobile data usage. Since these mini-notebooks are particularly small and light, they are ideal for convenient mobile surfing at high speeds. February 2009 saw the German market launch of the T-Mobile G1, the world’s first cell phone to use the Android operating system. The Android handset range has since been extended to include the T-Mobile G2 Touch and the T-Mobile Pulse. Thousands of programs and games can be down- loaded from the online Android Market. In June 2009, T-Mobile Deutschland exclusively introduced the Apple iPhone 3GS – currently the most powerful iPhone in the market. Approxi- mately 1.5 million iPhones were delivered to customers in Germany between the launch and the end of 2009. Launching the first two Windows-based cell phones in November 2009, T-Mobile Deutschland continued to lead the way in connected life and work on the move. The Microsoft Windows Mobile 6.5 Professional operat- ing system is the hallmark of the HTC Touch2 and the HTC HD2, which are ideally equipped for Windows Marketplace applications that users can easily download. 53Group management report