Events after the reporting period

Realignment of the B2B telecommunications business in the Germany operating segment. Effective July 1, 2020, a new entity for business customers was established in the Germany operating segment. In this regard, TC Services and Classified – with the exception of a few activities in the area of classified IT project business – which were previously reported under the Systems Solutions operating segment, were transferred to a new, wholly-owned subsidiary of Telekom Deutschland GmbH in the Germany operating segment as part of a spin-off and transfer agreement. Furthermore, the Telekom Global (TGC) and Network Infrastructure (NWI) sub-areas – which were previously reported under the Europe operating segment and the Group Headquarters & Group Services segment respectively, and which together form the business area designated Deutsche Telekom Global Carrier (DTGC) – are to be transferred to Telekom Deutschland GmbH as of October 1, 2020 by way of a spin-off from Deutsche Telekom AG. The shareholders’ meeting of Deutsche Telekom AG approved the corresponding spin-off and takeover agreement with the required qualified majority on June 19, 2020. As part of these transactions, the assets and liabilities assigned to the business areas are being transferred to the Germany operating segment. This step is consistent with Deutsche Telekom’s efforts to implement the Group strategy pillar “Lead in business productivity.”

Sale of Sprint’s prepaid business. The structure of the new T‑Mobile US must factor in the agreement reached with the U.S. Department of Justice (DoJ), one condition of which is that Sprint divests its business to satellite TV operator DISH for around USD 1.4 billion (EUR 1.3 billion). The sale of Sprint’s prepaid business includes around 9.4 million customers. The agreement also includes the sale of part of the 800 MHz spectrum held by Sprint to DISH for approximately USD 3.6 billion (EUR 3.2 billion). As of July 1, 2020, the U.S. authorities’ requirements regarding the divestiture of Sprint’s prepaid business were duly met and the agreement to sell spectrum to DISH confirmed.

Conclusion of the 5G spectrum auction in the Netherlands. At the first auction in the Netherlands, which was concluded on July 21, 2020, T‑Mobile Netherlands, which is part of the Group Development operating segment, successfully bid on spectrum in the 700, 1,500 and 2,100 MHz bands for a total of EUR 0.4 billion.

For more information on spectrum auctions, please refer to the section “The economic environment” in the interim Group management report.

Early repayment of USD bonds by T‑Mobile US. On July 4, 2020, T‑Mobile US redeemed the USD 1.0 billion aggregate principal amount of its 6.500 percent senior notes due 2024.

Information and Communication Technology
A telecommunications network operator.
In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.
New communications standard, which offers data rates in the gigabit range, converges fixed-network and mobile communications, and supports the Internet of Things – rollout starting 2020.