10 Investments accounted for using the equity method

Deutsche Telekom publishes the following information on significant investments included in the consolidated financial statements using the equity method:

Description of the nature of the activities of the joint arrangements or associates

GlasfaserPlus Holding GmbH & Co. KG with its subsidiary GlasfaserPlus GmbH (GlasfaserPlus), a joint venture between Deutsche Telekom and the IFM Global Infrastructure Fund, is engaged in the planning, construction, and operation of fiber-optic network infrastructure to the building or user (FTTH), and wholesale services to serve end customers on the mass market.

T‑Mobile USA Tower LLC and T‑Mobile West Tower LLC are structured entities founded by T‑Mobile US in each of which it holds a 100 % stake for the purpose of contributing cell sites in accordance with a framework agreement signed in 2012 between T‑Mobile US and Crown Castle International Corp., Houston, United States, concerning the leasing and use of the cell sites. The sole right to continue to use and lease out these sites was transferred to Crown Castle. T‑Mobile US continues to operate its mobile equipment on these cell towers and, to this end, leases back the required capacity from Crown Castle. Previously unused infrastructure is thus available for Crown Castle to lease to third parties. In return, the owners of the land on which the cell towers are built will no longer receive lease payments from T‑Mobile US for those cell towers that were contributed to the two associates and those companies that were disposed of. Both entities were deconsolidated as of the date of the closing of the transaction in 2012, because Crown Castle independently operates the cell towers, generates revenues from leasing out the sites for an average of 27 years, and determines the finance and business activities of both entities that are relevant for consolidation purposes. It is expected that the leasing of tower space will allow Crown Castle to generate sufficient ongoing profits and cash flows to be able to meet its contractual obligations. Deutsche Telekom has only a significant influence and includes these companies in the consolidated financial statements as associates. Under certain conditions, T‑Mobile US will continue to be held liable for any default in the lease payment by Crown Castle to the owners of the underlying land of the cell sites. The agreement includes an extremely low maximum guarantee amount for Deutsche Telekom, since in the unlikely event that this case occurs, T‑Mobile US could take over the further use of the relevant cell sites or alternatively terminate the contracts with the owners of the cell site land at short notice. At closing, T‑Mobile US established an immaterial cash reserve in the entities sufficient to fund the payment of ongoing administrative expenses not payable by Crown Castle. Aside from the guarantee and the payment of administrative expenses, there is no other funding obligation by T‑Mobile US.

Trailblazer Holdco LLC with its subsidiary (Lumos) is a joint venture between T‑Mobile US and the investment fund EQT Infrastructure Fund VI (EQT). In connection with the acquisition transaction, T‑Mobile US acquired fiber customers from Lumos. Since then, Lumos has continued to provide fiber services for the acquired fiber customers under a wholesale agreement between T‑Mobile US and Lumos. The joint venture acts as an FTTH platform, focusing on market identification and selection, build-out planning, network planning and development, network services, and installation for customers. T‑Mobile US manages the customer relationships and sells fiber-optic services under the T‑Mobile brand.

Metronet Systems Holdings LLC with its subsidiaries (Metronet) is a joint venture between T‑Mobile US and KKR & Co. Inc. In connection with the acquisition transaction, T‑Mobile US acquired residential fiber customers from Metronet. Since then, Metronet has continued to provide fiber services for the acquired fiber customers under a wholesale agreement between T‑Mobile US and Metronet. The joint venture acts as an FTTH platform, focusing on market identification and selection, build-out planning, network planning and development, network services, and installation for customers. T‑Mobile US manages the customer relationships and sells fiber-optic services under the T‑Mobile brand.

For further information on the acquisitions of Lumos and Metronet, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”

Digital Infrastructure Vehicle II SCSp SICAV-RAIF (DIV II) is an investment company with a portfolio of shareholdings in companies engaged in the development and operation of digital infrastructure projects, such as mobile infrastructure, fiber-optic networks, data centers, and related activities, with a focus on Europe.

GD Towers Holding GmbH with its shareholdings in the cell tower business companies in Germany and Austria (GD tower companies), operates cell sites in Germany and Austria as a joint venture of Deutsche Telekom with DigitalBridge and Brookfield. The sale of 51.0 % of the shares in the GD tower companies on February 1, 2023 resulted in the loss of control over these companies. Since then, Deutsche Telekom has included the remaining stake in the GD tower companies in the consolidated financial statements using the equity method. Based on contractual arrangements, the shareholders (Deutsche Telekom with DigitalBridge and Brookfield) can only make the relevant decisions jointly and unanimously, and thus have joint control over the company. With a remaining stake of currently around 49.0 %, Deutsche Telekom has classified the GD tower companies as a joint venture based on the legal form and the resulting rights and obligations of the shareholders in relation to the net assets of the company.

The following tables provide summarized financial information on the main companies included in the consolidated financial statements and accounted for using the equity method. The data is not based on the stakes attributable to Deutsche Telekom AG, but represents the shareholdings on an assumed 100 % basis.

In the 2025 and 2024 financial years, the consolidated financial statements did not include any unrecognized losses in connection with investments accounted for using the equity method.

Summarized aggregate financial information on non-significant entities accounted for using the equity method

The figures relate to the interests attributable to Deutsche Telekom.