Highlights in the third quarter of 2019

T‑Mobile US added to the S&P 500 Index. T‑Mobile US was added to the S&P 500 Index and to the S&P 500 GICS (Global Industry Classification Standard) Wireless Telecommunication Services Sub-Industry index effective prior to the open of trading on July 15, 2019.

Realignment of business-to-business telecommunications services. Consistent with our efforts to implement our Group strategy pillar “Lead in business productivity,” we plan to set up a new integrated unit for business-to-business telecommunications services within Telekom Deutschland in 2020. This new unit will comprise both the existing Business Customers unit from Telekom Deutschland and the portfolio units TC Services and Classified from T‑Systems. To enhance its agility on the market, T-Systems also plans to spin off the business units Security and (Internet of Things) into two independent legal entities (limited liability companies under German law (GmbHs)). Both companies will continue to be part of T-Systems. No additional staff reductions are planned as part of this step.

Broadcast rights for UEFA EURO 2024. We have secured the broadcast rights in Germany for the UEFA European Championship 2024. The agreement with European soccer association UEFA covers the exclusive exploitation rights for all 51 matches. This means we can offer all UEFA EURO 2024 games on our TV and streaming platforms. The matches of the German national team and other games will be broadcast free-to-air, as will the semi-finals and the final.

Investments in networks

5G goes live in five cities. Our network is now operational in five German cities – Berlin, Bonn, Cologne, Darmstadt, and Munich. A total of 129 5G antennas were up and running as of September 2019, delivering bandwidths of 1 Gbit/s and over. Some 66 antennas in Berlin’s Mitte district form the largest coherent 5G coverage area in Germany, covering around six square kilometers. We are gradually expanding our 5G network clusters in these five cities so that larger areas can be served and not just isolated spots around individual antennas. The aim is to provide maximum coverage so customers can enjoy the best network. Hamburg and Leipzig are also to benefit from 5G by the end of 2019. In total, there are plans to install more than 300 antennas in Germany by the end of the year. Our efforts to roll out 5G and innovate in this field are also going well in the United States and our European subsidiaries. In Austria, for example, we made the first ever video call using 5G, while in Croatia a drone has transmitted video footage over a 5G network. For more details, please refer to our media information.

30 million households connected to the high-speed network. We are building fast internet for millions of people. In September 2019 alone, we increased speeds to up to 250 Mbit/s for over 700,000 lines. The number of lines with speeds of up to 250 Mbit/s has grown to its current total of almost 25 million. The total number of households with the option to choose rate plans offering up to 100 Mbit/s or faster has now risen to 30 million.

Fiber-optic lines for the Oder-Spree district. Over the coming three years, some 42 million euros of public funding will be invested in building out broadband coverage in the district of Oder-Spree. will be laid district-wide for around 8,000 households, almost 200 businesses – primarily on business parks – and 68 schools and educational institutions. The corresponding agreement was signed on September 26, 2019. We were awarded the contract for this project following a Europe-wide request for proposals. The new lines will offer speeds of up to 1 Gbit/s and are capable of handling all kinds of digital applications. We plan to lay more than 2,800 km of fiber-optic cable and install about 400 new distribution cabinets.

“Hunting down dead zones.” A new initiative called “Wir jagen Funklöcher” (hunting down dead zones) aims to close 50 gaps in mobile coverage across Germany. Municipalities can get actively involved as partners in our campaign to expand the mobile network. The campaign calls on municipalities, policy-makers, citizens, and local businesses to take the initiative. It is open to all municipalities with a dead spot in coverage. All we ask for is either a rooftop location suitable for an antenna or an open space for a mast. In return, we build and operate a state-of-the-art LTE site. “Wir jagen Funklöcher” complements our existing cell site program, under which we install around 2,000 antennas each year. Furthermore, in the months of June to August alone, we added almost 4,500 new LTE antennas to the network across Germany, bringing LTE network coverage to 97.9 percent of the population.

Innovations and partnerships

“we care” is making sustainability visible for customers. We take our responsibility for a more sustainable future seriously. To be even more transparent, we are launching our “we care” sustainability label to offer guidance and make purchasing decisions easier – particularly helping customers who place a high value on sustainability. It will feature in descriptions of selected Deutsche Telekom products, services, projects, and initiatives. The label has two categories: The “digital participation” (digitale Teilhabe) symbol highlights a positive contribution toward solving social challenges in the digital world. The “we care” symbol relates to the environment, covering products, services, and initiatives that contribute, for example, toward climate protection and responsible use of resources. For more details, please refer to our media information.

#DABEI ensures Germany can #TAKEPART. Our booth at this year’s IFA in September in Berlin was built around our three-pronged approach of “Best networks, best products, best service” and revealed an abundance of innovations – from the launch of 5G to the smart speaker. The #DABEI FESTIVAL showcased our company as a responsible partner with its finger on the pulse of an increasingly digital society. In addition to interactive performances centering on 5G, the fiber-optic roll-out, and Magenta products and services, we also offered workshops with experts and pros on coding, gaming, upcycling, and more.

Telekom and Ericsson: new campus networks for industry. Campus networks are in high demand in the industrial sector. State-of-the-art mobile communications technology can be used to enhance – or even replace entirely – existing Wi-Fi networks. It offers greater capacities, low latency, and keeps data traffic more secure. We announced a strategic partnership with Ericsson to jointly provide enterprise customers with answers to the growing market for smart industrial solutions and help them revolutionize their on-site infrastructure. From wireless industrial robots to fully networked value chains, we make it simple for businesses to begin using next-generation transmission technology. We offer a wide range of LTE- and 5G-based campus solutions. Production plants, logistics centers, airports, and ports are the first users to benefit from the innovative new portfolio. For more details, please refer to our media information.

Climate-neutral cell site. This year, we launched a unique project worldwide in the town of Dettelbach. For the first time ever, a cell site is powered permanently by a bio-methanol fuel cell. The fuel cell is not only more efficient and much easier to maintain than a combustion engine, but is also carbon-neutral since it runs on bio-methanol, as well as being silent, and vibration-free. Fuel cells make it possible for cell sites without mains power to operate around the clock. This project helps us to meet our climate goal of reducing CO2 emissions by 90 percent by 2030. To achieve this goal we intend to transition to 100 percent renewable electricity throughout the Group from 2021.

“5Germany”: talking 5G with the business community. Shaping the digital future actively together with 5G: This was the motto of our user conference “5Germany” organized by Handelsblatt and Deutsche Telekom in late September 2019. Numerous board members of large and medium-sized companies joined government representatives at the event in Berlin. Together with them, we discussed specific industrial requirements for 5G. The goal is for network operators, industry, and policy-makers to work shoulder to shoulder on the 5G rollout. For more details, please refer to our media information.

Audi, Ingolstadt, and Telekom cooperate on 5G. We plan to enter into a pioneering 5G technology partnership together with the city of Ingolstadt and Audi. The goal is to use the new 5G technology to make urban mobility safer, more digital, and more sustainable. The memorandum of understanding is the basis for a planned cooperation to develop a digital transport infrastructure that, in the long term, aims to offer people greater road safety, better traffic flows, and digital real-time services. The city of Ingolstadt plans to comprehensively support Deutsche Telekom’s construction work and expansion of the mobile communications infrastructure, thus supporting application-oriented developments and more in the mobility sector. In addition to Audi, other industrial companies will be able to use the local 5G infrastructure. For more details, please refer to our media information.

Mobile banking service in Croatia. Hrvatski Telekom and Zagrebačka banka in August 2019 introduced Telekom Bankarstvo – a complete mobile banking service – mobile application, checking account, foreign currency account, free transactions, internet banking, and other bank services such as cash and housing loans and savings – of Zagrebačka banka in cooperation with Hrvatski Telekom, which is also the first such cooperation in the Croatian market. The service is available to smartphone users, while special benefits will be available to Hrvatski Telekom users.

Brand and products

MagentaMobil 2019: even more data and 5G included. Our new MagentaMobil rate plans offer even more surfing fun on the best network (connect 1/2019). Launched at the beginning of September 2019, all plans have been topped up with StreamOn flat rates and an additional data allowance, and are ready for the 5G era. The data allowance on the MagentaMobil S plan goes up from 2.5 to 6 gigabytes (GB), on the MagentaMobil M plan it is up from 5 to 12 GB, and the allowance on the MagentaMobil L plan is increasing from 10 to 24 GB. Data is still unlimited on the MagentaMobil XL rate plan. On top of all that, all will in future benefit from StreamOn. Furthermore, data allowances under the new Business Mobil rate plans are more than doubling and are also 5G-ready. For more details, please refer to our media information.

Order today, connected tomorrow: New Telekom rate plans for IoT. We offer full-service rate plans for the Internet of Things (IoT). Our Business Smart Connect packages cover a range of all-inclusive services. The pre-activated can be used immediately in sensors, trackers, and other devices. The package also includes a service portal to manage the cards. Cards can be used in 28 countries of the European Union. We are the first company to also offer on the NB-IoT networks of our national companies. These are currently Austria, the Netherlands, Hungary, Slovakia, the Czech Republic, and Greece. For more details, please refer to our media information.

Fully comprehensive service for the home network: WLAN Paket plus. We are expanding our home networking product portfolio with WLAN Paket plus. The package includes two Speed Home Wi-Fi units that use mesh Wi-Fi technology to beam a wireless signal throughout the entire house. Also included is the Deutsche Telekom Wi-Fi promise: A fully comprehensive service for all questions relating to home networking, with experts on hand to help set up and optimize Wi-Fi either over the phone or via remote access. They ensure optimum reception, advise on where best to place the Speed Home Wi-Fi units, and help get them connected. If telephone support is not enough, a Wi-Fi expert will make an on-site visit, if necessary. For more details, please refer to our media information.

Hallo Magenta – the first smart speaker made in Europe. Our Smart Speaker was launched on the market in September 2019. It is now possible to simply use voice commands to operate MagentaTV, Magenta SmartHome, and telephone services. Using voice commands to adjust the lighting or temperature at home to the right mood is no problem, either. The Smart Speaker even makes phoning a hands-free activity. Voice dialing allows users to make a call from their without any additional equipment. The Smart Speakers offer the highest level of data security – data is processed exclusively in compliance with our high European data protection standards. For more details, please refer to our media information.

For further information, please refer to the Media section on our website at: www.telekom.com/en/media/media-information.

Awards

The illustration below shows the main awards received in the third quarter of 2019. For details on more awards, please go to www.telekom.com/media.

Major awards in the third quarter of 2019

Major awards in the third quarter of 2019 (graphic)
ICT
Information and Communication Technology
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.
5G
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.
Fiber-optic lines
Sum of all FTTx access lines (e.g., FTTC/VDSL, vectoring, and FTTH).
LTE - Long-Term Evolution
New generation of 4G mobile communications technology using, for example, wireless spectrum on the 800 MHz band freed up by the digitization 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, and facilitates new services for cell phones, smartphones, and tablets.
Mobile customers
In the combined management report, one mobile communications card corresponds to one customer. The totals were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown (see also SIM card).
SIM card - Subscriber Identification Module card
Chip card that is inserted into a cell phone to identify it in the mobile network. Deutsche Telekom counts its customers by the number of SIM cards activated and not churned. Customer totals also include the SIM cards with which machines can communicate automatically with one another (M2M cards). The churn rate is determined and reported based on the local markets of the respective countries.
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.
Roaming
Refers to the use of a communication device or just a subscriber identity in a visited network rather than one’s home network. This requires the operators of both networks to have reached a roaming agreement and switched the necessary signaling and data connections between their networks. Roaming comes into play when cell phones and smartphones are used across national boundaries.
Fixed-network lines
Lines in operation excluding internal use and public telecommunications, including IP-based lines. The totals reported in the combined management report were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown.