2 Trade receivables

Trade receivables increased by EUR 2.7 billion to EUR 13.5 billion Receivables increased by EUR 2.9 billion as of April 1, 2020 in connection with the inclusion of Sprint. Exchange rate effects, primarily from the translation from U.S. dollars into euros, reduced the carrying amount. Excluding this effect, receivables in the United States operating segment increased, mainly due to higher receivables from wholesale partners – in particular as a consequence of the sale of Sprint’s prepaid business to DISH – and higher receivables under the Equipment Installment Plan – primarily as a result of the market launch of higher-priced devices in the fourth quarter of 2020. In the Germany operating segment, receivables increased as a result of the contractual termination of a revolving factoring agreement for receivables from consumers and business customers. By contrast, receivables in the Europe operating segment decreased, among other factors, on account of the agreed sale of Telekom Romania Communications S.A., which operates the Romanian fixed network business. This entity’s receivables were reclassified as of December 31, 2020 to non-current assets and disposal groups held for sale. Of the total of trade receivables, EUR 11,473 million (December 31, 2019: EUR 9,074 million) is due within one year.

For information on allowances, credit ratings, and write-offs of receivables as well as on factoring agreements, please refer to Note 41 “Financial instruments and risk management.”

In contrast to postpaid contracts, prepaid communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.
Refers to the business of selling services to third parties who sell them to their own retail customers either directly or after further processing.