Deutsche Telekom

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Deutsche Telekom Deutsche Telekom with more than 100 million mobile communications customers and in a top position regarding new DSL customers Jan 28, 2007 In the 2006 financial year, Deutsche Telekom continued to significantly increase its customer base in the domestic and international markets and thus improved its market position. Within Germany, the T-Com and T-Mobile rates, which were newly introduced last year, established themselves successfully on the market. In the Broadband / Fixed Network area, T-Com again achieved a leading position regarding the acquisition of new DSL customers thanks to the new 3x3 bundled rates. The proportion of self-marketed broadband lines in the T-Com network increased in the fourth quarter to 64 percent from 19 percent in the third quarter of 2006. With 563,000 new broadband retail customers, T-Com recorded the highest quarterly increase for DSL since the broadband technology was launched on the market. Overall, the amount of 3x3 bundle packages sold at the end of the year increased to 3.6 million; more than two thirds of the packages were sold in the Double Play (telephone and Internet) area. Including Resale DSL, i.e. broadband lines marketed by competitors on the T-Com network, the amount of DSL lines increased in the fourth quarter by 878,000 to 10.3 million. T-Com was able to more than double the number of international broadband lines compared to last year to over 1.4 million. As a result of the T-Mobile@Home calling plan introduced last spring, the Group was also able to benefit from continuing fixed network substitution: More than 1.1 million customers in Germany used this plan by the end of the year. In the mobile communications area, customer numbers increased to significantly more than 100 million through organic and inorganic growth. At the cut-off date, T-Mobile had 106.4 million customers, including the customers of PTC and those of tele.ring which was acquired in Austria. Adjusted for consolidation effects, customer numbers increased by 8.6 million or 8.8 percent. In Europe, T-Mobile recorded strong inorganic growth as a result of the PTC consolidation in Poland and the acquisition of tele.ring in addition to the organic growth in the national companies. Overall, the amount of mobile communications customers in Europe increased by around 19.8 million customers or 22.9 percent in a year-on-year comparison. In Germany, T-Mobile recorded roughly 746,000 net additions in the fourth quarter, 384,000 of whom opted for a fixed-term contract. Internationally, significant customer growth was achieved primarily by T-Mobile USA: In the USA, T-Mobile recorded 901,000 net additions in the final quarter of 2006, 783,000 of whom are contract customers. At the end of the year, T-Mobile USA thus exceeded the 25 million customer mark. Development of customer numbers in 2006: Broadband/Fixed Network 12/31/06 12/31/05 Change Change in millions in millions in millions (percent) Broadband Total no. of 11.716 8.559 3.158 36.9 lines Domestic 10.280 7.918 2.363 29.8 of which 3.212 1.592 1.620 101.7 resale 1) International 1.436 0.641 0.795 124.1 2) ISP rates 8.048 5.531 2.517 45.5 (total) 3) WorldReginfo - f610d66e-b7d3-484e-af7f-4abfd14778fb 12/31/06 12/31/05 Change Change in millions in millions in millions (percent) Domestic 6.288 4.454 1.834 41.2 Narrowband Total no. of 38.961 41.243 (2.282) (5.5) lines Domestic 4) 33.192 35.241 (2.049) (5.8) of which 9.035 9.771 (0.737) (7.5) ISDN International 5.769 6.002 (0.233) (3.9) Magyar 2.972 3.150 (0.178) (5.6) Telekom 5) Slovak 1.150 1.177 (0.027) (2.3) Telekom T-Hrvatski 1.647 1.675 (0.028) (1.7) Telekom ISP rates 3.196 4.392 (1.196) (27.2) (total) 3) Domestic 3.000 4.062 (1.062) (26.1) No. of 16.590 15.243 1.3 8.8 Internet customers with a billing relationship Comments(total) 3) 6) 7)on the Broadband/Fixed Network table: 1) Definition of “resale”: Sale of broadband lines to alternative providers outside the Deutsche Telekom Group; 2) Access customers on proprietary network, previous year’s values have been adjusted; 3) Registered customers. Includes Domestic and Magyar Telekom, T-Hrvatski Telekom and Slovak Telekom, T-Online Spain (Ya.com) and T-Online France (Club Internet), previous year’s values have been adjusted; 4) Telephone lines excluding internal use and public payphones, including wholesale services; 5) Including the Magyar Telekom subsidiary MakTel and Crnogorski Telekom (formerly Telekom Montenegro). Previous year’s values have not been adjusted; 6) Including domestic and international customers with a billing relationship, broadband and narrowband rates and PAYG (Pay as you go) customers, previous year's values have been adjusted; 7) Iskon Internet is consolidated through T-Hrvatski Telekom with retroactive effect from June 1, 2006. Previous year’s values have not been adjusted; Info: Magyar Telekom (Hungary), Slovak Telekom (Slovakia), T-Hrvatski Telekom (Croatia) Mobile Communications 12/31/06 12/31/05 Change Change in millions in millions in millions (percent) Mobile 106.419 97.846 8.573 8.8 customers 1) in Europe 81.378 76.156 5.222 6.9 total WorldReginfo - f610d66e-b7d3-484e-af7f-4abfd14778fb 12/31/06 12/31/05 Change Change in millions in millions in millions (percent) in the 25.041 21.690 3.351 15.4 USA (T-Mobile USA) T-Mobile 31.398 29.523 1.875 6.4 Deutschland T-Mobile UK 16.905 17.158 (0.253) (1.5) 2) PTC 3) 12.228 10.201 2.027 19.9 T-Mobile 3.180 3.119 0.061 2.0 Austria 4) T-Mobile 2.552 2.317 0.235 10.1 Netherlands T-Mobile 5.049 4.634 0.415 9.0 Czech Republic T-Mobile 4.431 4.194 0.237 5.7 Hungary T-Mobile 2.158 1.903 0.255 13.4 Croatia T-Mobile 2.201 2.022 0.179 8.9 Slovakia Other 5) 1.277 1.085 0.192 17.7 Comments on the Mobile Communications table: 1)One SIM card corresponds to one customer in this diagram. Organic customer growth is reported for better comparability: tele.ring customers were also included in the historic customer base, although the shares were not acquired until the end of April 2006; 2) Including Virgin Mobile. The decline on 2005 is based on a change in the definition of Virgin customers since the first quarter of 2006. Since the first quarter of 2006, Virgin customers are reported on a 180-day migration basis (previously 360 days). The 2005 customer figures have not been adjusted. Details in the Group interim report for the 1st quarter of 2005; 3) PTC has been consolidated since 11/06, historic figures are shown and included in the totals in order to illustrate the organic customer trend; 4) tele.ring is consolidated since 05/06, historic figures have been adjusted and are included in the totals in order to illustrate the organic customer trend; 5) Other Countries consists of T-Mobile Macedonia (previously MobiMak) and T-Mobile Montenegro (previously MONET) WorldReginfo - f610d66e-b7d3-484e-af7f-4abfd14778fb.
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