Deutsche Telekom AG - The 2009 financial year

The United States operating segment (T-Mobile USA) comprises all of Deutsche Telekom’s wireless activities in the U.S. market and offers mobile voice and data services to consumers and business customers. Mobile devices and accessories are usually sold in connection with the services offered. In addition, T-Mobile USA offers its customers a number of service options, including rate plans with and without contracts, the ability to pay in advance or subsequent to service, and rate plans with and without subsi- dized handsets. T-Mobile USA uses a mix of direct and indirect distribution channels to market its mobile voice and mobile data products and services. T-Mobile USA services are also sold to wholesale entities such as MVNOs and machine-to-machine operators and are a growing distribution channel for T-Mobile USA unbranded products and services. The Europe operating segment covers all activities of the mobile commu- nications companies in the United Kingdom, Poland, the Netherlands, the Czech Republic and Austria, as well as the International Carrier Sales and Solutions unit, which mainly provides wholesale telecommunications services for the Group’s other operating segments. The Southern and Eastern Europe operating segment comprises all fixed-network and mobile communications operations of the national com- panies in Hungary, Croatia, Slovakia, Greece, Romania, Bulgaria, Albania, the F.Y.R.O. Macedonia, and Montenegro. The Systems Solutions operating segment offers products and solutions for major public-sector institutions and large multinational corporations (corporate customers) under the T-Systems brand. The operating segment offers its customers information and communication technology (ICT) from a single source. It develops and operates infrastructure and industry solutions for corporate customers. Drawing on a global infrastructure of computing centers and networks, T-Systems operates ICT systems and provides inte- grated solutions for the networked future of business and society. Group Headquarters & Shared Services comprises all Group units and subsidiaries that cannot be allocated directly to one of the operating segments. Group Headquarters is responsible for strategic and cross- segment management functions. The Shared Services unit is responsible for all other operating functions that are not directly related to the afore- mentioned operational segments’ core business. These include Vivento, which provides employees with new employment opportunities as part of the staff restructuring program, Real Estate Services, whose activities Group organization. Realignment of the management structure // Expansion of the portfolio of shareholdings to include OTE // Joint venture in the United Kingdom Organizational structure and business activities. Deutsche Telekom is an integrated telecommunications provider. The Group offers its customers around the world a comprehensive portfolio of state-of-the-art telecommunications and IT services. Since July 1, 2009, Deutsche Telekom’s organizational structure has reflected the realigned management structure approved by the Supervisory Board on April 29, 2009. The new structure increases regional market responsibility in the combined fixed-network and mobile communications business. The realignment also resulted in a change to the structure of the operating segments from July 1, 2009. Since July 1, 2009, Deutsche Telekom has reported on the five operating segments Germany, United States, Europe, Southern and Eastern Europe, and Systems Solutions, as well as on Group Headquarters & Shared Services. Fixed-network business includes all voice and data communications activities based on fixed-network and broadband technology. This includes the sale of terminal equipment and other hardware, as well as the sale of services to resellers. The mobile communications business offers mobile voice and data services to consumers and business customers. Mobile terminals and other hard- ware are sold in connection with the services offered. In addition, T-Mobile services are sold to resellers and to companies that buy network services and market them independently to third parties (MVNOs). The business activities in four of these five operating segments are assigned by regions and in the fifth by customers and products. The Germany oper- ating segment comprises all fixed-network and mobile activities in Germany. Fixed-network business consists of consumers and business customers, after the latter had been reassigned effective January 1, 2009 from the Systems Solutions operating segment (until December 31, 2008 called the Business Customers operating segment) to fixed-network operations. Fixed-network services are also sold to resellers and to other operating segments of the Group. 56