More than telecommunications

We are focusing here on two key areas. The first involves further stabilizing the company's traditional fixed and mobile access business. Market volumes in the markets where we operate networks are estimated at more than 200 billion euros alone. In our core business, operating networks and IT, we want to defend our market shares and successfully continue our business models.

The second key area is opening up and expanding new growth areas that will help to balance out the fall in revenue from the traditional and regulated network business. Here, we concentrate on five areas:

• The mobile Internet
• The connected home, which for example provides controls for household devices, heating appliances, televisions or garage doors via mobile devices
• ICT solutions, i.e. combined communications and information technology offerings for corporate customers
• Our own Internet offerings such as those from the Scout Group or STRATO
• Intelligent network solutions for other industries

Our strategic program until 2015:

Improving the performance of mobile-centric assets
In all countries in which our operations primarily provide mobile communications services, we are planning to enhance our performance and specifically invest in next-generation technologies, develop innovative services, and expand our portfolio of mobile devices.

In spring 2010 the Telekom subsidiary T-Mobile UK entered into a joint venture with France Télécom. The joint company "Everything Everywhere" is the market leader in Great Britain. In Poland Telekom secured shares in PTC - and thus a good position for the largest mobile communications market in Central and Eastern Europe.

Competitive edge in integrated markets
We are continuing the path to integrate fixed-network and mobile communications that we have completed in Germany and some European markets such as Croatia and Slovakia. Our customers are benefiting from improved services and new integrated services and tariffs. Through the Media Center, for example, customers already have 24/7 access to their music, photos, and other media content, whether on their PCs, TVs, or smartphones. The integration will also enable the capture of synergies in the marketing, sales and service areas, which will in turn reduce costs.

Build networks and processes for the gigabit society
As the market leader in Germany we have over twelve million existing broadband lines. And we continue to invest in expanding the network. Among other things, we want to supply up to ten percent of households with fiber optics. We have started to roll out the LTE network in several countries. In Germany alone we have already been able to upgrade around 800 stations with this technology since 2010.

Connected life across all screens
The mobile Internet is a success story with rapid growth numbers. The relevant terminals, especially smartphones, now represent the majority of mobile phones sold. We want to further increase revenue with the mobile Internet to around ten billion euros by 2015.
Our prominent position in the European TV market is yet another success factor. In 2011 we were able to increase the number of "Entertain" customers in Germany to 1.4 million. Our TV customer number in the Southern and Eastern European markets is already 2.6 million.

Connected work with unique ICT solutions
Deutsche Telekom is creating integrated platforms for corporate customers and consumers. We are concentrating on the four focus areas of energy, health, media and connected car where setting up intelligent networks for our partners from these industries is opening up completely new business segments. T-Systems, our corporate customer arm, is already successfully offering cloud services today, i.e. moving computing power and intelligence into the Internet, with customers obtaining and paying for their IT service when they need it.