Form-20-F 2007

As filed with the Securities and Exchange Commission on February 28, 2008 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Form 20-F È ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2007 Commission file number 001-14540 Deutsche Telekom AG (Exact Name of Registrant as Specified in its Charter) Federal Republic of Germany (Jurisdiction of Incorporation or Organization) Friedrich-Ebert-Allee 140, 53113 Bonn, Germany (Address of Registrant’s Principal Executive Offices) Guido Kerkhoff Chief Accounting Officer Deutsche Telekom AG Friedrich-Ebert-Allee 140, 53113 Bonn, Germany +49-228-181-0 [email protected] (Name, Telephone, E-mail and/or Facsimile number and Address of Company Contact Person) Securities registered or to be registered pursuant to Section 12(b) of the Act: Title of each class Name of each exchange on which registered American Depositary Shares, each representing New York Stock Exchange one Ordinary Share Ordinary Shares, no par value New York Stock Exchange* Securities registered or to be registered pursuant to Section 12(g) of the Act: NONE (Title of Class) Securities for which there is a reporting obligation pursuant to Section 15(d) of the Act: NONE (Title of Class) Indicate the number of outstanding shares of each of the issuer’s classes of capital or common stock as of the close of the period covered by the annual report: Ordinary Shares, no par value: 4,361,297,603 (as of December 31, 2007) Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes È No ‘ If this report is an annual or transition report, indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934. Yes ‘ No È Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes È No ‘ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. Large accelerated filer È Accelerated filer ‘ Non-accelerated filer ‘ Indicate by check mark which basis of accounting the registrant has used to prepare the financial statements included in this filing: ‘ U.S. GAAP È International Financial Reporting Standards as issued by the International Accounting ‘ Other Standards Board If “Other” has been checked in response to the previous question indicate by check mark which financial statement item the registrant has elected to follow. Item 17 ‘ Item 18 ‘ If this is an annual report, indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ‘ No È *Not for trading, but only in connection with the registration of American Depositary Shares. TABLE OF CONTENTS Page PART I Item 1. Identity of Directors, Senior Management and Advisors ................................ 4 Item 2. Offer Statistics and Expected Timetable ............................................ 4 Item 3. Key Information ............................................................... 4 Selected Financial Data ....................................................... 4 Risk Factors ................................................................ 7 Item 4. Information on the Company ..................................................... 17 Introduction ................................................................ 17 Historical Background ........................................................ 17 Organizational Structure ....................................................... 19 Segment Revenue Breakdown .................................................. 20 Description of Business ....................................................... 21 Mobile Communications .................................................... 21 Broadband/Fixed Network ................................................... 33 Business Customers ........................................................ 47 Group Headquarters and Shared Services ....................................... 56 Innovation Management (Research and Development) ............................... 59 Acquisitions and Divestitures ................................................... 61 Regulation .................................................................. 62 Description of Property, Plant and Equipment ...................................... 81 Item 4A. Unresolved Staff Comments ..................................................... 82 Item 5. Operating and Financial Review and Prospects ....................................... 83 Management Overview ....................................................... 83 Critical Accounting Estimates .................................................. 91 Consolidated Results of Operations .............................................. 94 Segment Analysis ............................................................ 102 Mobile Communications Europe/USA ......................................... 102 Broadband/Fixed Network ................................................... 120 Business Customers ........................................................ 130 Group Headquarters and Shared Services ....................................... 134 Liquidity and Capital Resources ................................................ 136 Recently Issued IASB Pronouncements ........................................... 146 Item 6. Directors, Senior Management and Employees ....................................... 150 General .................................................................... 150 Supervisory Board ........................................................... 151 Management Board .......................................................... 156 Compensation ............................................................... 159 Share Ownership ............................................................ 168 Employees and Labor Relations ................................................. 170 Item 7. Major Shareholders and Related Party Transactions ................................... 177 Major Shareholders .......................................................... 177 Related Party Transactions ..................................................... 178 Item 8. Financial Information ........................................................... 181 Consolidated Financial Statements .............................................. 181 Export Sales ................................................................ 181 Legal Proceedings ........................................................... 181 Dividend Policy ............................................................. 193 Significant Changes .......................................................... 194 i Page Item 9. The Offer and Listing .......................................................... 195 Trading Markets ............................................................ 195 Item 10. Additional Information ......................................................... 198 Articles of Incorporation ..................................................... 198 Significant Differences in Corporate Governance Practices .......................... 204 Exchange Controls .......................................................... 207 Taxation .................................................................. 208 German Taxation ......................................................... 208 U.S. Taxation and U.S.-German Double Taxation Agreement of August 29, 1989 ...... 211 Documents on Display ....................................................... 214 Item 11. Quantitative and Qualitative Disclosures about Market Risk ........................... 214 Risk Identification and Analysis ............................................... 214 Foreign Exchange Rate Risk .................................................. 215 Interest Rate Risk ........................................................... 216 Changes in Market Risk Exposure in 2007 Compared to 2006 ........................ 216 Item 12. Description of Securities Other than Equity Securities ................................ 217 PART II Item 13. Defaults, Dividend Arrearages and Delinquencies ................................... 218 Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds ............. 218 Item 15. Controls and Procedures ........................................................ 218 Item 16A. Audit Committee Financial Expert ................................................ 220 Item 16B. Code of Ethics ............................................................... 220 Item 16C. Principal Accountant Fees and Services ........................................... 221 Item 16D. Exemptions from the Listing Standards for Audit Committees .......................... 222 Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers ................... 222 PART III Item 17. Financial Statements ........................................................... 223 Item 18. Financial Statements .......................................................... 223 Report of Independent Registered Public

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