Operating segments of the Deutsche Telekom Group.

With more than 128 million customers, T-Mobile International is a global leader of mobile communications. T-Mobile set innovative trends with the Apple iPhone 3G, which we market on an exclusive basis in Germany, and the T-Mobile G1, the first mobile device using the open Android software which we played a major role in developing. Together with attractive rate plans, both devices helped to increase our competitiveness in Germany and abroad. T-Mobile Deutschland defended its leading position in Germany, while T-Mobile USA is creating the conditions for further growth in mobile data business by consistently optimizing its network. The Eastern European mobile communication companies also achieved significant growth in terms of contract customers.

T-Home is taking a leading position in the German DSL market, with a retail customer base of 10.6 million and a total market share of around 46 percent. The number of fixed-network lines continued to decrease, however, due to competition and regulation. For the first time, there were also line losses on technical grounds as a result of the migration of resale customers to the all-IP platform. T-Home’s share in the market for net DSL additions increased to 45 percent. Innovative products such as Entertain and the Call&Surf all-in-one packages were key to this success. And Stiftung Warentest rated T-Home as the best Internet provider on the German market. Our Eastern European majority holdings achieved double-digit growth rates in broadband business.