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Highlights in the 2021 financial year

For further information on these and other events, please refer to our media information.

Developments at senior management level

In its meeting on December 15, 2021, the Supervisory Board of Deutsche Telekom AG resolved to propose Dr. Frank Appel, CEO of Deutsche Post AG, as the new Chairman of the Supervisory Board. Dr. Appel will stand for election at the shareholders’ meeting of Deutsche Telekom AG on April 7, 2022 as Prof. Ulrich Lehner’s successor. For reasons of age, Prof. Lehner will not be standing for a further term of office. Deutsche Telekom is also setting the course for continuity with regard to the position of the Chairman of the Board of Management: Tim Höttges will stay on as CEO of Deutsche Telekom for a further five years.

For further information, please refer to our media report.

Business and other transactions

Fiber-optic build-out through joint venture with IFM. On November 5, 2021, Deutsche Telekom announced that IFM Global Infrastructure Fund – advised by IFM Investors – will acquire a stake of 50 % in GlasfaserPlus GmbH, a fiber-optic build-out entity. The agreed purchase price for the 50 % stake in our subsidiary amounts to EUR 0.9 billion, half of which is to be settled upon conclusion of the transaction, and the remainder once progress has been made in the build-out. The newly established joint venture is to build out an additional 4 million gigabit-capable FTTH lines in rural and development areas between 2022 and 2028. This transaction underpins Deutsche Telekom’s aim of being the leading company for the fiber-optic build-out in Germany. Following its approval by the European Commission on January 25, 2022, the transaction is expected to be completed before the end of the first quarter of 2022.

Strategic measures to secure control of T‑Mobile US in the long term. On September 6, 2021, Deutsche Telekom took strategic action to increase its stake in T‑Mobile US in a move that secures the existing control over the U.S. subsidiary and full consolidation in the long term:

Under the deal signed between Deutsche Telekom and SoftBank on September 6, 2021, the objective of which is to increase Deutsche Telekom’s stake in T‑Mobile US, Deutsche Telekom acquired a total of around 45.4 million T‑Mobile US shares from SoftBank on September 28, 2021. SoftBank received in return 225 million new shares in Deutsche Telekom AG by way of a capital increase against contribution in kind utilizing the 2017 Authorized Capital, excluding subscription rights for existing shareholders, making it a shareholder in Deutsche Telekom AG with a stake of around 4.5 %. The transaction increases Deutsche Telekom’s stake in T‑Mobile US by 3.6 percentage points, bringing it to 46.8 %. Deutsche Telekom is also weighing plans to further increase its stake in T‑Mobile US by investing up to USD 2.4 billion (around EUR 2.1 billion) in the purchase of additional shares through the exercise of further fixed-price and variable options. This investment is to be financed from a portion of the net cash proceeds of around EUR 3.8 billion from the planned sale of T‑Mobile Netherlands. On September 6, 2021, Deutsche Telekom and Tele2 agreed to sell our subsidiary T‑Mobile Netherlands to WP/AP Telecom Holdings IV. The transaction is subject to approval by the authorities as well as other closing conditions. The transaction is expected to be completed in the first quarter of 2022.

Deutsche Telekom expects its total stake in T‑Mobile US to be around 48.4 % upon completion of these two transactions. The exact percentage is based on the precise number of shares to be acquired, which in turn depends, in half, on the average market price of T‑Mobile US. Deutsche Telekom and SoftBank have also agreed a new strategic partnership that will position Deutsche Telekom as a major European partner in the SoftBank ecosystem.

Acquisition of Shentel. On May 28, 2021, a purchase agreement was signed between T‑Mobile US and Shentel for the acquisition of assets and liabilities directly associated with the wireless telecommunications operation of Shentel. The transaction was consummated on July 1, 2021. The purchase price was USD 1.9 billion (EUR 1.6 billion).

Sale of Telekom Romania Communications. On November 6, 2020, OTE concluded an agreement with Orange Romania concerning the sale of its 54 % stake in Telekom Romania Communications, which operates the Romanian fixed-network business, to Orange Romania. The transaction was approved by the authorities and then consummated on September 30, 2021. The purchase price is EUR 296 million.

Combination of the cell tower business in the Netherlands and creation of an infrastructure fund. On January 21, 2021, Deutsche Telekom, Cellnex Telecom, and the newly established independently managed investment company Digital Infrastructure Vehicle (DIV) signed an agreement to merge Deutsche Telekom’s and Cellnex’s respective Dutch subsidiaries for mobile infrastructure. Following approval of the deal by the national competition authority, the Dutch cell tower company T‑Mobile Infra was sold to DIV effective June 1, 2021 and subsequently contributed into Cellnex Netherlands.

Reassignments between the operating segments. Effective January 1, 2021, Deutsche Telekom reassigned the responsibility for business and profit and loss for Deutsche Telekom IoT GmbH from the Systems Solutions operating segment to the Germany operating segment. Also effective January 1, 2021, Deutsche Telekom transferred its Austrian cell tower business from the Europe operating segment to the Group Development operating segment, and Deutsche Telekom IT (DT IT) Russia, DT IT Slovakia, and DT IT Hungary from the Germany operating segment to the Group Headquarters & Group Services segment.

For further information on these business transactions and others, please refer to the section “Group organization” in the combined management report and the sections “Other transactions that had no effect on the composition of the Group,” “Changes in the composition of the Group and other transactions,” and Note 36 “Segment reporting” in the notes to the consolidated financial statements.

Capital Markets Day 2021

In May 2021, we presented our medium-term strategy and the financial outlook at our Capital Markets Day in Bonn. Our forecast for growth through to 2024 remains at a consistently high level: We expect revenue to grow annually by 1 to 2 % on average and adjusted EBITDA AL by 3 to 5 % on average. Free cash flow AL is to reach more than EUR 18 billion by 2024. We will continue to invest large amounts, with most of these capital expenditures going into building out our network infrastructure (optical fiber and 5G). The dividend will continue to track the development in adjusted earnings per share. This figure is set to rise from the 2020 level of EUR 1.20 to more than EUR 1.75 by 2024. Subject to approval by the relevant bodies, 40 to 60 % of adjusted earnings per share is to be paid out. The dividend floor introduced in November 2019 of EUR 0.60 per share still applies. Based on the strong development of business in 2021, our Board of Management plans to pay out a dividend of EUR 0.64 per share, up from EUR 0.60 for the 2020 financial year, subject to the necessary approvals.

For further information on our Capital Markets Day 2021, please refer to our Investor Relations website.

T‑Mobile US Analyst Day

Marking almost one year since the merger with Sprint, on March 11, 2021 T‑Mobile US updated analysts on the status of the business integration and shared its medium-term financial targets. For example, by March 2021 the company was already ahead of the planned time frame for realizing the synergies from the business combination announced with the transaction in April 2018. Our U.S. subsidiary also provided an update on the 5G network build-out following the national spectrum auction, where it invested in C-band frequencies to add to its Ultra Capacity 5G. T‑Mobile US additionally announced its plans to expand its footprint to include smaller and rural target markets, the enterprise customer segment, and home broadband.

Rating

In June 2021 the rating agency Moody’s upgraded the rating outlook for Deutsche Telekom AG. The Moody’s rating is now Baa1 with a stable outlook.

In August 2021, the “big three” rating agencies all upgraded their ratings for our subsidiary T‑Mobile US: Moody’s from Ba2 to Ba1, Standard & Poor’s from BB to BB+, and Fitch from BB+ to BBB-.

Cyberattack on T‑Mobile US

In August 2021 T‑Mobile US confirmed that their systems had been subject to a criminal cyberattack that compromised data of millions of their customers, former customers, and prospective customers. With the assistance of outside cybersecurity experts, T‑Mobile US located and closed the unauthorized access to their systems and identified customers whose information was impacted and notified them, consistent with state and federal requirements. T‑Mobile US also undertook a number of other measures to demonstrate their continued support and commitment to data privacy and protection. The forensic investigation is now complete and T‑Mobile US believes they now have a full view of the extent of the attack.

Litigation

In November 2021, Deutsche Telekom AG presented the Frankfurt/Main Higher Regional Court with a settlement concept in connection with the prospectus liability proceedings on the third public offering. Under the concept, Deutsche Telekom is to make firm settlement offers to all eligible plaintiffs.

For further information on pending and closed litigation, please refer to the section “Risk and opportunity management” in the combined management report.

Investments in networks

Awarding of 5G spectrum. In the United States and the countries of our Europe operating segment, a number of 5G spectrum award proceedings were held in the reporting year, at which T‑Mobile US and our national companies in Hungary, Croatia, and Romania were each able to successfully secure spectrum. With these spectrum acquisitions we can now forge ahead with the rapid build-out of our network infrastructure and bring more services, including 5G, to our customers. The build-out goes on continuously.

For further information on spectrum awards, please refer to the section “The economic environment” in the combined management report.

Network build-out in Germany. We continued to build out our network infrastructure in Germany throughout the reporting year. At the end of 2021, our 5G network covered over 90 % of households. More than 63,000 antennas at around 20,000 sites are transmitting 5G. In over 140 cities, 5G is now available in the powerful 3.6 GHz band. 3,600 antennas at 1,200 sites deliver high-speed 5G for growing numbers of users. We also added to our LTE network in 2021, increasing coverage of households to 99 % as of December 31, 2021. At the end of June 2021, 3G was permanently retired with the shutdown of this older technology. We are refarming the released spectrum for the significantly better performing LTE/4G and 5G technologies.

In the fixed network, the fiber-optic build-out took center stage. At the end of 2021, our fiber-optic network extended over a total distance of around 650,000 kilometers. Since the start of 2021, we have rolled out fiber-optic lines (FTTH) to around 1.2 million more households. The total number of households passed by our fiber-optic network had increased to around 3.4 million by the end of 2021. In the reporting year, we also announced ambitious targets to roll out FTTH in cities across Germany, including Berlin, Hamburg, Frankfurt/Main, Düsseldorf, and Stuttgart. For example, we began rolling out optical fiber in Munich in October 2021, while in Bautzen (Saxony) we have already covered some 60,000 households and businesses in 55 municipalities across the district. By 2024 we are set to connect a total of approximately 10 million households Germany-wide to our fiber-optic network. We give equal priority to building out to rural areas as we do to urban centers, and are planning to bring optical fiber to a total of 8 million rural households by 2030. Together with the Australian investor IFM, the fiber-optic build-out company GlasfaserPlus is to add a further 4 million households in rural areas to this target.

Network build-out in the United States. By the end of 2021, T‑Mobile US had further expanded its 5G network leadership, delivering 5G speeds to broad swaths of the United States with the largest national 5G network. The 5G network of our U.S. subsidiary now covers more than 310 million people via the 600 MHz band and over 210 million people with Ultra Capacity 5G in the 2.5 GHz band and millimeter-wave (mmWave) spectrum. T‑Mobile US has thus not only met, but exceeded, its original target of bringing Ultra Capacity 5G to 200 million people by the end of 2021. T‑Mobile US plans to reach 300 million people with Ultra Capacity 5G by the end of 2023.

Network build-out in Europe. In the countries of our Europe segment, too, we continued to press ahead with the network build-out in the reporting year. As of the end of 2021, our national companies covered 28.9 % of the population in our European footprint with 5G. Indeed, in Greece, 69 % of the population benefit from the advantages of 5G technology. As of December 31, 2021, we covered 98.2 % of the population in our European countries with LTE, reaching a total of around 109 million people. At the end of September 2021, T‑Mobile Polska shut down its 3G network to refarm the released spectrum for the better performing LTE/4G and 5G services.

We also made good progress with the build-out of our fixed network in 2021. We have made fiber-optic lines available to a further 1.4 million households in our Europe segment since the start of 2021. At the end of 2021, a total of 27.9 %, or around 7.0 million households, thus had the option to subscribe to a direct connection to our high-speed fiber-optic network with speeds reaching up to 1 Gbit/s. By 2024, we are set to increase fiber-optic coverage in our Europe operating segment to 40 %, or 10 million households. Our Greek subsidiary OTE plans to significantly ramp up investments in the accelerated build-out of the broadband fixed network. This will serve not only to meet the requirements for the digital transformation in Greece over the coming years, but will also bring fiber-optic lines (FTTH) to 3 million households and businesses. Our FTTH lines were available to 480,000 households in Croatia by the end of 2021.

Corporate responsibility and employees

Crisis management. As a critical infrastructure company, we make an important contribution to society through the reliable provision and restoration of telecommunications services. This holds particularly true in respect of the restoration of telecommunications infrastructure following the occurrence of natural disasters and crisis situations, such as the catastrophic flooding experienced across North Rhine-Westphalia and Rhineland-Palatinate in July 2021, as well as the maintenance of operational capability during the coronavirus pandemic. In circumstances such as these, it is imperative that we take special action to enable businesses to remain operational, to offer support, and to protect our customers and employees.

For further information, please refer to the sections “Corporate responsibility and non-financial statement” and “Employees” in the combined management report.

Digital innovations for climate goals. In July 2021, T‑Systems and Shell Gas & Power Developments signed a memorandum of understanding to advance digital innovation as both companies accelerate their transitions to net-zero emissions. Under the terms of the agreement, the two companies will collaborate on innovations and services to accelerate Shell’s digital transformation, and work together to identify opportunities to co-invest and participate in new business models focused on the decarbonization of society. Shell’s role will include supplying renewable energy to our subsidiary T‑Mobile US, and in turn T‑Systems will install more than 10,000 electric vehicle charging stations in Germany for Shell over the next three years.

For further information, please refer to our media report.

Making the cloud greener. In April 2021, T‑Systems launched a research project at the Biere data center in Saxony-Anhalt. Together with the Fraunhofer IFF in Magdeburg, T‑Systems experts are developing measures for improved sustainability in the operation of data centers. The long-term goal: a data center that is energy self-sufficient thanks to an intelligent interplay of regenerative generation, storage, and flexible consumers. On the one hand, this reduces the load on the power grid. On the other, increased self-sufficiency strengthens the resilience of the data center.

For further information, please refer to our media report.

Innovations

T‑Mobile US and Deutsche Telekom continue their mission to fuel 5G innovation. Since November 2021, T‑Mobile US is the exclusive 5G launch partner in North America for Qualcomm Technologies’ new Snapdragon Spaces™ XR Developer Platform. In addition, via the T‑Mobile Accelerator, T‑Mobile US, Deutsche Telekom, and others will work directly with start-ups and developers using Snapdragon Spaces to build immersive 5G experiences for augmented reality (AR) glasses across gaming, entertainment, and other industries starting in spring 2022. To help build an ecosystem for extended reality (XR) applications on the basis of the Snapdragon Spaces platform, all participants will cooperate directly to develop, test, and bring to market new products and services. In October 2021, T-Labs, our centralized research and development unit, and T‑Mobile US teamed up to launch T-Challenge, a worldwide competition for start-ups, developers, researchers, and designers. Their goal: to develop 5G and XR technology solutions to transform the retail experience and fuel new innovations in how consumers shop across all retail channels.

Digital X 2021. On September 7 and 8, 2021 we hosted the Digital X 2021 world expo on all things digital in the heart of Cologne. In a packed program covering five stages and over 100 popular Cologne locations, including restaurants, bars, hotels, and co-working spaces, the city showcased the topics of digital transformation and sustainability for business and society. Talks and workshops presented digital solutions in areas ranging from artificial intelligence and 5G, to the Internet of Things, virtual/augmented reality, and cloud computing. The overriding goal: to create excitement and enthusiasm for digitalization. More than 300 enterprises presented solutions for the digital transformation.

For further information, please refer to our media report.

MWC 2021: Telekom Tech Grounds. As part of Mobile World Congress 2021 on June 28 and 29, 2021, we hosted a new digital conference format called Telekom Tech Grounds, with the theme “Exploring human-centered technology.” The conference showcased the ways in which technological solutions can contribute to a future-ready society. At the conference, together with Ericsson and Samsung Electronics, we announced the successful realization of 5G end-to-end network slicing. This is the world-first implementation of multi-vendor 5G end-to-end (E2E) network slicing with a commercially available 5G device. We also announced the switch-on of our O-RAN Town in Neubrandenburg. O-RAN Town will deliver Open RAN-based 4G and 5G services at up to 25 sites. The first sites are in operation and integrated into the live network of Telekom Deutschland. The winners of the hubraum Network Sustainability Awards 2021 were also honored at Telekom Tech Grounds.

Hannover Messe. T‑Systems presented its new artificial intelligence (AI) offering for the first time at Hannover Messe in April 2021. AI Solution Factory bundles the development, testing, introduction, and operation of AI solutions for production and logistics. It is a modular kit of hardware, software, connectivity, and security. T‑Systems also premiered its Campus Edge Framework. The offering combines network solutions such as 5G with infrastructure and services from Amazon Web Services to create managed solutions. T‑Systems orchestrates and integrates all edge computing components and, if desired, relieves customers of administration, maintenance, and contract management. Other topics included Catena X, security, SAP, digital supply chains, and how data can reduce the carbon footprint.

For further information, please refer to our media report.

For further information on our innovations, please refer to the section “Technology and innovation” in the combined management report.

Cooperation, partnerships, and major contracts

Contract with Deutsche Rentenversicherung. In October 2021, Deutsche Rentenversicherung extended our contract on the secure operation of its communications networks. The deal is worth a figure in the triple-digit million range and means we will continue to operate the pension insurance provider’s existing voice, data, and mobile network infrastructure on the basis of state-of-the-art, forward-looking technologies with the highest security standards. Deutsche Rentenversicherung transmits millions of datasets containing the social data of all German citizens over its network.

Sovereign cloud for Germany. In September 2021, T‑Systems and Google announced their partnership to provide a next-generation cloud solution: the T‑Systems Sovereign Cloud powered by Google Cloud. The two companies plan to build a new cloud solution that allows customers to host their sensitive workloads whilst continuing to leverage the scalability, innovativeness, and reliability of public cloud services. A number of safeguards will address the strict compliance requirements applicable, for example, to public-sector institutions. T‑Systems is to enable these mechanisms with a set of services based on the Google Public Cloud, including encryption, audits, and identity management. T‑Systems will be in charge of operating the cloud and managing the services. The solution will initially be available to customers in the DACH region (Germany, Austria, and Switzerland) in various industries, including healthcare, automotive, public transport, and the public sector.

For further information, please refer to our media report.

T‑Systems enters into partnerships for sustainable mobility. In December 2021, T‑Systems and Goal Systems announced a partnership aiming to support the digital transformation of providers for public passenger and freight transport with holistic offerings. This project is a response to the drastic changes and challenges faced by the industry, including the expansion of e-mobility, with the reduction of CO2 as a primary goal, as well as the development of more flexible transport concepts. In November 2021, T‑Systems and Frequentis signed a partnership agreement under which they will pool their aviation expertise in pursuit of the far-reaching digitalization of airports. The aim is to achieve more efficient processes in the passenger area and airport logistics on the basis of integrated systems and digitalized processes. These innovations will also serve as a lever to reduce CO2 emissions.

High-speed communication for IAA MOBILITY 2021. To mark the opening of IAA in August 2021, we expanded our existing partnership with Messe München for mobile and fixed-network communications to offer visitors an entirely new trade fair experience. With the exhibitor area of IAA extending over large parts of Munich for the first time this year, fiber-optic lines were laid and 29 new 5G sites set up to create a brand-new mobility platform.

For further information, please refer to our media report.

For a seamless mobile network along rail tracks in Germany. Together with Deutsche Bahn, we intend to substantially improve mobile reception on trains. In future, passengers using our mobile network are to be able to make calls and surf the internet on all routes without interruption. By 2026 at the latest, coverage gaps along all railway lines in long-distance and regional services are to be eliminated. Both companies have agreed to jointly invest a sum in the hundreds of millions that will allow us to build out our mobile network along Deutsche Bahn’s railway lines, close any gaps, and significantly increase the network’s performance.

For further information, please refer to our media report.

T‑Mobile US and Zyter partner to deliver virtual healthcare solutions. In April 2021, T‑Mobile US and Zyter announced a preferred partnership to deliver virtual healthcare solutions – including telehealth, remote patient monitoring, and digital collaboration for care teams – to more healthcare organizations and their patients across the United States. Together, the two companies are making virtual care more accessible to more people, which serves to improve patient outcomes and reduce readmission rates.

Extension of fiber-optic partnership with NetCologne. In February 2021, Deutsche Telekom and NetCologne extended their long-running partnership from 2013 with an agreement to continue working together for a further ten years. Beyond the continued use of VDSL, the partners have also set the course for granting mutual network access to gigabit-capable fiber-optic infrastructure in the future. The goal is to maximize network utilization and secure additional investments in the future fiber-optic build-out.

Extension of the fixed-network partnership with 1&1. Deutsche Telekom and 1&1 Versatel will continue to work closely together in the fixed network: both companies signed a ten-year extension to their strategic partnership in mid-February 2021. The corresponding contract covers the further use of VDSL and lays the groundwork for the use of fiber to the home/building. This fixed-network partnership safeguards the utilization of our networks and drives forward the fiber-optic build-out in Germany. In return, 1&1 can offer its customers a future-oriented product portfolio on our fast network.

Network infrastructure sharing with Telefónica. Deutsche Telekom and Telefónica are set to jointly close several hundred “gray spots” in 4G network coverage under an agreement signed in November 2021. The partners will share active network technology at the sites. Unlike previous joint projects, such as radio mast site-sharing or the operator agreement to close “white spots,” separate wireless technology or antennas do not have to be additionally installed with this approach.

For further information, please refer to our media report.

5G partnerships and campus networks. In close partnership with Deutsche Telekom, Deutsche Messe in Hanover gradually transformed its exhibition grounds in 2021 into a highly innovative multifunctional campus. We ensure 5G campus network coverage over a total area of more than 1.4 million square meters. T‑Systems and Ericsson also pooled their expertise in 2021 to offer their respective customers integrated campus network solutions. The partnership is based on Ericsson’s campus network infrastructure and our edge computing capabilities. In addition, in January 2021, T‑Mobile US announced five-year, multi-billion-dollar agreements with both Ericsson and Nokia to continue advancing and expanding the nation’s largest 5G network. In December 2021, T‑Mobile US, 5G Open Innovation Lab, and CoMotion at the University of Washington (UW) announced a collaboration that will enable hardware start-ups to develop, test, and roll out new products, services, and prototypes powered by T‑Mobile US’ Ultra Capacity 5G. With the new 5G network deployed at CoMotion Labs on the UW campus, the facility is now the first 5G-equipped incubator in the region of Washington, focused on supporting the growth of the hardware start-up ecosystem.

Openness and diversity in the radio access network. In January 2021, Deutsche Telekom, Orange, Telefónica, and Vodafone Group signed a joint letter of intent expressing their individual commitment to the implementation and deployment of Open Radio Access Network (Open RAN) solutions. Open RAN takes advantage of new open virtualized architectures, software, and hardware to build more agile and flexible mobile networks in the 5G era. The four operators will work together with existing and new ecosystem partners, industry bodies, and European policy makers to ensure Open RAN quickly reaches competitive parity with traditional RAN solutions.

For further information, please refer to our media report.

Open lab “i14y” created. In November 2021, the open lab “i14y” began operation with the aim of accelerating the disaggregation of networks and the development of Open RAN. The Berlin-based lab is run by a consortium of partners and has been funded by the German Federal Ministry for Transport and Digital Infrastructure. The testing and integration work done at the i14y lab will be crucial to developing the collaboration and the standards required for this open, disaggregated approach. Besides Deutsche Telekom, the consortium is made up of BISDN, Capgemini Engineering, EANTC, Fraunhofer HHI, highstreet technologies, Nokia, Rohde & Schwarz, Telefónica Deutschland, TU Berlin, and Vodafone Deutschland.

For further information, please refer to our media report.

Products, rate plans, and services

New smart solutions for inner-city mobility. We showcased innovative mobility concepts at ITS World Congress 2021 in Hamburg to demonstrate how technologies such as 5G, edge computing, sensor technology, cloud computing, and artificial intelligence can contribute to greater sustainability and safety – from cars that can quickly find a free parking space, to better quality, more reliable public transport, collision warning technology designed to keep cyclists safer on the roads, to reduced emissions through the networking of vehicles in and around the Port of Hamburg, and the introduction of intelligent urban tolling.

For further information, please refer to our media report.

E-governance via the smart city app. Telekom Deutschland’s Citykey app is the new digital companion for daily city life. Citizens can access digital government services, entertainment and events calendars, and tourism services all via the app. It’s an easier way to book appointments with the city, fill out official forms, see the latest news and information, report faulty infrastructure, and much more besides. Towns, cities, and municipalities can use the app to quickly and cost-effectively digitalize their services and actively involve users in configuring content.

A new B2B concept in Telekom Shops. Since July 2021, self-employed business customers and small and medium-sized enterprises have been able to access our entire solutions portfolio in around 190 Telekom Shops across Germany. These include traditional fixed-network and mobile offerings alongside home working and IT solutions, such as hardware, Microsoft 365, Magenta Business POS, Cloud PBX, and security services. Specially trained customer advisors are now also taking appointments for external site visits in the vicinity of the shops, e.g., on-site visits at the customer’s premises. The new, integrated B2B concept can be experienced first-hand in-store, including at our recently renovated flagship store in Cologne.

MagentaEINS Unlimited. We have extended the range of our MagentaEINS FMC products. With MagentaEINS Unlimited, customers benefit from a fixed and mobile contract of their choice from Deutsche Telekom with unlimited data across Germany and including 5G at home and on the move. The product bundles can also be extended to include further family members via corresponding partner cards. We have created a separate mobile rate plan for the new Unlimited packages: MagentaMobil EINS offers unlimited voice minutes and texts in all German networks. MagentaEINS Unlimited combines mobile connectivity with our fixed-network product MagentaZuhause in a choice of sizes: L, XL, XXL, or Giga.

Digital Home Service. Our Digital Home Service was launched in April 2021 for all applications in the digital home. The service helps customers optimize their home Wi-Fi and set up computers, tablets, smartphones, and MagentaTV. The service package also answers all questions relating to smart home applications, firewalls, and suitable virus protection. In November 2021, we launched our 5G Indoor Booster to improve 5G network coverage inside buildings for a disruption-free customer experience. Also in November we introduced a hybrid solution to enable more bandwidth for home networks. The fixed-mobile solution is based on the Speedport Smart 4 router in combination with an outdoor 5G receiver. We rigorously took sustainability into account when planning and designing these routers. The resulting considerable reduction in use of natural resources and in CO2 emissions, plus the avoidance of plastic waste, helps protect the environment. Our Android-based MagentaTV One Box, which can also be used with any other internet service provider, was launched in December 2021.

T‑Mobile US’ next Un-carrier move: #5GforAll. In April 2021, T‑Mobile US rang in the #5GforAll era with a sweeping set of initiatives including a free 5G phone upgrade. Now, everyone in America can trade in any mobile phone and get a 5G smartphone for free. All of the around 60 million customers of our U.S. subsidiary’s competitors still on limited data plans and/or with limited 5G access can upgrade to unlimited data with access to T‑Mobile US’ full 5G network for the same price – or less – than their existing plans. T‑Mobile US also launched T‑Mobile Home Internet, a simple and fast Wi-Fi broadband solution over the mobile network. The T‑Mobile Hometown promise is a commitment that extends over the next few years to bring 5G to rural America, hire 7,500 new employees in small towns and rural communities, and provide USD 25 million in grants for community development projects.

T‑Mobile US business customer campaign. In March 2021, T‑Mobile US launched WFX Solutions – a new suite of services for business maximizing the benefits of its 5G network. The products T‑Mobile Enterprise Unlimited, T‑Mobile Home Office Internet, and T‑Mobile Collaborate help businesses and their employees with mobile and home working.

Awards

In the reporting year we once again received numerous accolades for our networks, our products and service, our HR work and CR reporting, and our innovations. The illustration below shows the main awards received.

Major awards in 2021

Major awards in 2021 (graphic)

Major awards in 2021

Major awards in 2021 (graphic)
4G
Refers to the fourth-generation mobile communications standard that supports higher transmission rates (see LTE).
Glossary
5G
New communications standard (launched from 2020), which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things.
Glossary
AL – After Leases
Since the start of the 2019 financial year, we have taken the effects of the first-time application of IFRS 16 “Leases” into account when determining our financial performance indicators. “EBITDA after leases” (EBITDA AL) is calculated by adjusting EBITDA for depreciation of the right-of-use assets and for interest expenses on recognized lease liabilities. When determining “free cash flow after leases” (free cash flow AL), free cash flow is adjusted for the repayment of lease liabilities.
Glossary
AR – Augmented Reality
The computer-generated enhancement of the real world with perceptual information. The information can address all the human senses. However, augmented reality often only encompasses the visual representation of information, i.e., the augmenting of images or videos with additional computer-generated information or virtual objects using overlaying/superimposition.
Glossary
Cloud computing
Refers to the dynamic provision of infrastructure, software, or platform services online. Apart from a high level of automation and virtualization, the services provided have to be multi-client-capable and include standardized hardware and software. Customers source these services on demand and pay based on actual usage. The communication infrastructure may be the internet (public cloud), a corporate network (private cloud), or a mix of the two (hybrid cloud). Dynamic Services is a T-Systems product for the flexible procurement of ICT resources and services.
Glossary
Cybersecurity
Protection against internet crime.
Glossary
Edge Computing
Computing at the edge of the mobile communications network – not in remote data centers, but close to the customer, in the edge cloud. Edge computing opens up new applications: Anything that requires the rapid processing of large amounts of data, low latency and particularly strong security, such as augmented reality games.
Glossary
FMC – Fixed-Mobile Convergence
The merging of fixed-network and mobile rate plans for customers that have both fixed-network and mobile contracts with Deutsche Telekom.
Glossary
FTTH – Fiber To The Home
In telecommunications FTTH means that the fiber-optic cable is terminated right in the user’s home or apartment.
Glossary
Fiber-optic lines
Sum of all FTTx access lines (e.g., FTTC/VDSL, vectoring, and FTTH).
Glossary
IoT – Internet of Things
The IoT enables the intelligent networking of things like sensors, devices, machines, vehicles, etc., with the aim of automating applications and decision-making processes. Deutsche Telekom’s IoT portfolio ranges from SIM cards and flexible data rate plans to IoT platforms in the cloud and complete solutions from a single source.
Glossary
LTE – Long-Term Evolution
4G mobile communications technology that uses, for example, wireless spectrum on the 800 MHz band freed up by the digitalization of television. Powerful TV frequencies enable large areas to be covered with far fewer radio masts. LTE supports speeds of over 100 Mbit/s downstream and 50 Mbit/s upstream.
Glossary
Optical fiber
Channel for optical data transmission.
Glossary
Retail
The sale of goods and services to end users, as opposed to resale or wholesale.
Glossary
Router
A coupling element that connects two or more sub-networks. Routers can also extend the boundaries of a network, monitor data traffic, and block any faulty data packets.
Glossary
Sovereign Cloud
Data sovereignty is the central goal of the European initiative GAIA-X. With a European concept, companies of all sizes should be able to take advantage of the flexibility and innovative power of the complete cloud stack, while at the same time having the security of always remaining the master of their data. The Sovereign Cloud from GAIA-X relies on an open software ecosystem for its technical implementation, which on the one hand enables digital solutions and on the other hand can be operated on a wide range of infrastructures.
Glossary
XR – extended reality

Covers the entire virtuality spectrum: augmented reality, virtual reality, mixed reality, and simulated reality, as well as potential future developments.

  • AR – augmented reality. The computer-generated enhancement of the real world with perceptual information. The information can address all the human senses. However, augmented reality often only encompasses the visual representation of information, i.e., the augmenting of images or videos with additional computer-generated information or virtual objects using overlaying/superimposition.
  • VR – virtual reality. A simulated experience of the real world and its physical characteristics in real time in a computer-generated, interactive virtual environment. Unlike AR, which focuses on enhancing the real world with visual representations of additional data, VR fully immerses the user in a virtual world.
Glossary