Deutsche Telekom AG - The 2009 financial year

In the Europe operating segment, the number of customers at the end of the 2009 financial year remained stable at the prior-year level. Slight customer growth in the mobile communications companies in the United Kingdom, Poland and the Czech Republic fully compensated the decline in the number of customers at T-Mobile Netherlands. PTC, T-Mobile CZ and T-Mobile Austria each recorded growth in their contract customer business, sufficient to fully offset, or even more than offset, the slight decline in their respective prepay business. The year-on-year increase in the total customer base at T-Mobile UK was mainly attributable to the fact that higher numbers of T-Mobile UK’s own customers in the prepay sector compensated for the decrease in Virgin Mobile customers. Virgin Mobile customers are assigned to the prepay sector at T-Mobile UK. T-Mobile UK also recorded a slight year- on-year increase in the number of contract customers. The decrease in the total customer base at T-Mobile Netherlands was related to the prepay sector. Inactive customers were added to the customer base due to the acquisition of Orange Nederland and the migration in the 2009 financial year of Orange Nederland customers to T-Mobile’s customer base. After a period of inactivity of 180 days, these customers were churned in the fourth quarter of 2009, substantially reducing prepay customer figures. Overall, the high-value contract customer business generated satisfactory results in 2009, again driving growth in the overall customer base. All mobile communications companies contributed to the increase in the number of contract customers. The percentage of contract customers in the total customer base increased at all companies except T-Mobile UK. The per- centage of contract customers in the total customer base for the Europe operating segment rose by around 2 percentage points compared with the end of 2008 to 41.0 percent (including Virgin Mobile). This sound development is due to the focused customer acquisition strategy which appeals to high-value contract customers with calling plans with minute buckets, flat-rate plans, and new hardware offered in conjunction with a fixed-term contract. In addition, innovative mobile Internet services installed on high-performance cell phones and introduced as part of the connected life and work strategy successfully attracted new groups of customers. The launch of the T-Mobile G1, the T-Mobile G2 Touch, and the Apple iPhone was a strong boost to the contract customer business. The market launch in October 2009 of the T-Mobile Pulse, the third Android- based smartphone, marked a further milestone in the T-Mobile product portfolio and had a positive impact on net additions in the fourth quarter of 2009. Europe. Customer development. Dec. 31, 2009 millions Dec. 31, 2008 millions Change millions Change % Dec. 31, 2007 millions Europea 44.2 44.2 0.0 0.0 43.7 Of which: T-Mobile UKb 17.2 16.8 0.4 2.4 17.3 Of which:T-Mobile NLc 4.6 5.3 (0.7) (13.2) 4.9 Of which: PTC 13.5 13.3 0.2 1.5 13.0 Of which: T-Mobile CZ 5.5 5.4 0.1 1.9 5.3 Of which: T-Mobile A 3.4 3.4 0.0 0.0 3.3 a One mobile communications card corresponds to one customer. The total was calculated on the basis of precise figures and rounded to millions. Percentages were calculated on the basis of figures shown. For a detailed explanation of “SIM card,” please refer to the Glossary. b Including Virgin Mobile. c The consolidation of Online (formerly Orange Nederland Breedband B.V.) in the second quarter of 2008 has no effect on the number of customers of the T-Mobile Netherlands group, as only mobile communications customers are shown. Pleasing development in contract customer business // Increase in non-voice revenues 86