Highlights in the 2019 financial year

Board of Management

The former Board member responsible for Human Resources (CHRO), Dr. Christian P. Illek, became the new CFO as of January 1, 2019. Birgit Bohle joined the Board of Management on January 1, 2019 as the Board member responsible for Human Resources as successor to Dr. Illek. Thorsten Langheim became a member of the Board of Management at Deutsche Telekom AG as of January 1, 2019, taking up the role of head of the newly created Board of Management department for USA and Group Development. Deutsche Telekom AG thus had nine Board of Management departments in the 2019 financial year.

The Board of Management department for Data Privacy, Legal Affairs and Compliance (DRC) will be dissolved effective the end of Dr. Thomas Kremer’s term of office on March 31, 2020. The individual units of the DRC Board department were reassigned to other Board of Management departments (Finance, Human Resources, and Technology and Innovation) as of January 1, 2020. Birgit Bohle has headed up the Human Resources and Legal Affairs Board of Management department since January 1, 2020, which was extended to include the Data Privacy, Legal Affairs, and Compliance units. From this date until his departure, Dr. Kremer is overseeing the transition of the individual units of his department to the respective target departments in his role as the DRC Board of Management member. Deutsche Telekom AG will thus have eight Board of Management departments as of April 1, 2020.

Corporate transactions

On November 27, 2018, the European Commission unconditionally approved the acquisition of telecommunications provider Tele2 Netherlands Holding N.V. by T‑Mobile Netherlands Holding B.V. and the transaction was consummated on January 2, 2019. Tele2 Netherlands has been included in Deutsche Telekom’s consolidated financial statements as a fully consolidated subsidiary since the acquisition date. This transaction will establish a stronger, more sustainable provider of convergent fixed-network and mobile services on the Dutch market.

On January 15, 2019, OTE concluded an agreement concerning the sale of its stake in Telekom Albania to the Bulgarian company Albania Telecom Invest AD for a purchase price of EUR 50 million. The transaction was approved by the authorities and then consummated on May 7, 2019.

Consistent with our efforts to implement our Group strategy pillar “Lead in business productivity,” we plan to realign our telecommunications operations for business customers in 2020 by setting up a new integrated business-to-business unit in the Germany operating segment. This new unit will comprise both the existing Business Customers unit from Telekom Deutschland and the TC Services and Classified ICT units from T‑Systems – with the exception of a number of activities assigned to Classified IT project business. In addition, the Deutsche Telekom Global Carrier unit, currently assigned to Deutsche Telekom AG under company law, will be transferred to Telekom Deutschland GmbH in the Germany operating segment. Furthermore, the two portfolio units Security and IoT are to be turned into legally independent Group entities. No additional staff reductions are planned as part of this step.

Investments in networks SDG 9

5G spectrum won at German auction. We won four frequency blocks in the 2 GHz band and nine lots in the 3.6 GHz band worth a total of EUR 2.17 billion. We therefore acquired the spectrum we need for the planned network build-out. Our 5G build-out activities are well on schedule, and by the end of 2019 our 5G network – which reaches top transmission speeds of up to 1 Gbit/s – was already available in eight German cities: Berlin, Bonn, Darmstadt, Munich, Cologne, Frankfurt/Main, Hamburg, and Leipzig. By the end of 2020, at least 20 of the largest cities in Germany are to be connected to the network.

5G spectrum secured in the United States. The Federal Communications Commission (FCC) has auctioned licenses for the use of millimeter wave (mmWave) spectrum for 5G. Over the course of the two auctions for 28 GHz and 24 GHz spectrum, T‑Mobile US paid USD 842.5 million for a total of 367 MHz, thus securing itself a solid mmWave holding for 5G. T‑Mobile US launched the United States’ first nationwide 5G network in December 2019, offering network coverage to over 200 million people.

T‑Mobile Austria launches 5G network. At the 5G spectrum auction in Austria, T‑Mobile Austria – which markets its offerings under the Magenta product brand – purchased 110 MHz of spectrum covering all 12 regions (11 packages of 10 MHz in each of them) for a total of EUR 57 million. The company is now in a position to roll out the next-generation communications standard across all of Austria. The auction ended in early March 2019 and resulted in 438 from a total of 468 spectrum packages (39 packages of 10 MHz in each of the twelve regions) being auctioned for a total price of around EUR 188 million. T‑Mobile Austria used the spectrum purchased at auction to activate the first 5G base stations in March 2019. The number of 5G base stations connected to the mobile network has since risen to 31. We are also making good progress in other European national companies. In Croatia, for example, a drone transmitted video footage over a 5G network and the first 5G smart bench was presented, while in Poland a 5G test installation was launched. A range of potential applications for 5G have already been tested in the Czech Republic and in North Macedonia.

Fast internet for millions. Our goal is to provide fast internet lines to as many people as possible in rural and urban areas alike. Many new fiber-optic build-out projects in Germany are underway. These include the joint Gigabit project, under which we are working together with partners to offer ultra-fast internet to all businesses in the Stuttgart region by 2025. Through 2030 the plan is also for 90 percent of households to benefit from the build-out. The potential rollout area currently covers 175 municipalities in the Stuttgart area and neighboring districts. In the district of Rostock, more than 44,000 households, 6,100 businesses, and 573 local government buildings, schools, fire departments, local authorities, and institutions in over 70 municipalities will receive one of our fiber-optic lines. With more than 7,200 kilometers of fiber-optic cable, over 1,100 kilometers of civil engineering works, and almost 850 new fiber distribution cabinets, we intend to bring higher bandwidths to this area alone by mid-2021. In the district of Oder-Spree, fiber-optic lines will be laid district-wide for around 8,000 households, almost 200 businesses – primarily on business parks – and 68 schools and educational institutions. The new lines will offer speeds of up to 1 Gbit/s. From the flatlands of the north to the mountains of the south: In June 2019 we connected the village of Balderschwang, known for having the highest town center in Germany, to our high-speed network.

For more details, please refer to our media information.

“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. In return, we build and operate a state-of-the-art LTE site. The initiative runs alongside our standard build-out program to add some 2,000 cell sites each year. The application period began on August 20, 2019 and ended on November 30, 2019. 539 municipalities responded and submitted 624 applications. The first coverage dead zones to be addressed under the program will be eliminated in early 2020. We are set to build up to 10,000 cell sites in total across Germany in the coming four years. At the end of 2019, our LTE network reached 98.1 percent of households.

Corporate responsibility

Climate protection target supports Paris Agreement. SDG 13 One of our climate protection targets is to use electricity solely from renewable energy sources Group-wide by 2021. By 2030, we plan to reduce CO₂ emissions by 90 percent compared with 2017. Also by 2030, we want to lower the emissions generated by the production and use of our products and customer solutions by 25 percent. The Science Based Targets initiative (SBTi) confirmed us as the third DAX company whose climate protection targets contribute to compliance with the Paris Climate Agreement. Assuming responsibility for a low-carbon, environmentally friendly society has been one of the three fields of action of Deutsche Telekom’s corporate responsibility strategy since 2008.

For more details, please refer to our media information.

“we care” is making sustainability visible for customers. SDG 9 We take our responsibility for a more sustainable future seriously. To be even more transparent, we launched 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, measures, 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.

Climate-neutral cell site. SDG 13 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. Fuel cells make it possible for cell sites without mains power to operate around the clock.

Holistic approach to climate protection: scaled-down SIM card creates less plastic waste. SDG 12 We have worked together with our suppliers for many years to bring products to market that are as resource-efficient as possible. For example, we have reduced the size of the SIM punch card by half. As a result, we reduced the amount of plastic waste generated in Germany in the reporting year by 20.8 tons. We are the first German telecommunications company to take this step.

Sustainable smartphones recycling. SDG 12 Some 75 percent of a smartphone’s CO₂ emissions are generated during its production. What is more, mining of the valuable raw materials used in the devices often has environmental impacts. By reusing and recycling smartphones, we can help save precious resources. In 2019, we launched our sustainable smartphone recycling scheme. Not only does it benefit the environment and the climate, but customers buying a new device can opt to trade in a used smartphone hassle-free and save money on the purchase price. We professionally refurbish the units, installing new batteries and screens if required, to give old smartphones a new lease of life and prepare them for resale.

Innovation

#DABEI ensures Germany can #TAKEPART. SDG 10 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 rollout, and Magenta products and services, we also offered workshops with experts and pros on coding, gaming, upcycling, and more.

Making drones more secure and efficient. We are working with DFS Deutsche Flugsicherung GmbH on a new technology that uses the mobile network to track unmanned aircraft systems. The joint venture Droniq GmbH is providing a drone tracking platform that will enable drone flights beyond the operator’s line of sight in the future. Droniq will initially focus on the German market, before gradually expanding into other European countries. Droniq’s primary target market is commercial drone pilots in the infrastructure, surveying, and agricultural sectors who want to fly drones beyond their line of sight – as well as the police, the fire and rescue services, and users from the general aviation field.

Hannover Messe: drones, smart glasses, and smart displays. At Hannover Messe in early April 2019, we showed how “industrial intelligence” can help make planning, production, and logistics more efficient. Large manufacturers and SMEs alike found products and solutions for the smart factory at our booth. Examples included campus networks, 5G, drones, edge computing, smart glasses, smart displays, and artificial intelligence.

For more details, please refer to our media information.

Connectivity up close at MWC. Our booth at the 2019 Mobile World Congress in Barcelona with the theme #TAKEPART showcased the potential of 5G. Spread over an area of 1,200 square meters, consumers and industry representatives alike experienced demonstrations live and up close in a host of different application fields – all on the basis of our networks and technologies. The key message: The network of the future is already opening up a fascinating array of opportunities. As a pioneer, driver, and enabler of the digital transformation, we are laying the foundation that will allow everyone to participate in the new digital world. We welcomed a record number of visitors to our booth at the telecommunication industry’s biggest international exhibition.

For more details, please refer to our media information.

For further information on our innovations, please refer to the section “Innovation and product development.”

Partnerships and dialogs SDG 9

5Germany: talking 5G with the business community. Shaping the digital future actively together with 5G: This was the motto of our 5Germany user conference 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 roll out.

For more details, please refer to our media information.

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 help enterprise customers revolutionize their on-site infrastructure and address the growing market for smart industrial solutions. Starting 2020, we will also offer new campus network services tailored to the demands of business. Products for corporate customers and SMEs are planned on the back of successful pilot projects at Osram, ZF Friedrichshafen, and BorgWarner (Hungary). 2020 will also see us building 5G campus networks both in the Czech Republic, in cooperation with the Technical University of Ostrava, and in Austria with Graz University of Technology.

For more details, please refer to our media information.

Fiber-optic joint venture with EWE. We have entered into a joint venture agreement with energy and telecommunications company EWE to establish the Glasfaser NordWest joint venture. It aims to provide high-speed internet to up to 1.5 million households and business locations in areas of Lower Saxony, North Rhine-Westphalia, and Bremen on the basis of the fiber-to-the-home (FTTH) technology. We plan to jointly invest up to EUR 2 billion over a period of around ten years. The Federal Cartel Office (Bundeskartellamt) granted its final approval on December 30, 2019 following a review under merger control law.

For more details, please refer to our media information.

T‑Systems and Siemens accelerate the digital transformation of German industry. T‑Systems and Siemens announced a new partnership in October 2019 that puts the spotlight on the industrial Internet of Things. The partnership will provide industry customers with complete solutions for operational technology, information technology, and telecommunications. These joint digitalization solutions target a broad spectrum of business applications, from enterprise resource planning and customer relationship management to supply chain management, and manufacturing engineering systems.

For more details, please refer to our media information.

Digital X: analog exchange of ideas on digital innovation. As the digital revolution begins to take hold, the Digital X series of events focuses on exchanging ideas and networking. It is the largest cross-industry digitalization initiative in Europe. Several leading companies of the digital age are involved in the initiative. It began its tour across Germany in April 2019 and is making the digital identity of six German regions into something to be experienced. The big finale of Digital X 2019 took place in Cologne on October 29 and 30, attended by companies and decision-makers from all over Germany.

For more details, please refer to our media information.

Municipal Advisory Board on digitalization. In May 2019, we convened the first meeting of the new Municipal Advisory Board. The board, comprising members from local communities and associations, will consult on issues relating to the broadband build-out, 5G, and other digitalization topics. One of the board’s central goals is to accelerate the pace of digitalization across Germany. The Municipal Advisory Board provides the framework for direct dialog between the municipalities and Deutsche Telekom. In the future, it will be a platform for discussing ideas, interests, and expectations and for finding a rapid resolution to certain issues.

For more details, please refer to our media information.

Mobile banking service in Croatia. In August 2019, Hrvatski Telekom and Zagrebačka banka 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.

Partnership with SK Telecom. Together with SK Telecom we plan to develop 5G network technology and innovative 5G platforms and applications. The primary focus will be on in-house technology for the new mobile communications standard. SK Telecom is one of a number of investors from outside the Group putting capital in the new Venture and Growth Fund II set up by DTCP.

Brand, products, and rate plans

MagentaMobil 2019: even more data and 5G included. Our new MagentaMobil rate plans offer even more surfing fun on the best network (connect 1/2020). 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 mobile customers 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 SIM cards can be used immediately in sensors, trackers, and other IoT devices. The package also includes a service portal to manage the cards. Cards can be used in 33 countries of the European Union. We are one of the first companies to also offer roaming on the NarrowBand Internet of Things (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.

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. We are very open to finding solutions with genuine audience appeal – adapted in line with the relevant exploitation interests – and are already in talks with a number of TV broadcasters.

Hallo Magenta: the first European voice assistant. Our Smart Speaker with integrated voice assistant 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 fixed-network line without any additional equipment. The Smart Speaker’s voice assistant offers the highest level of data security – data is processed exclusively in compliance with our high European data protection standards. SDG 16

For more details, please refer to our media information.

Moving with Magenta Telekom into Austria’s digital future. T‑Mobile Austria and UPC Austria have merged to form Magenta Telekom. Since the acquisition of UPC Austria in 2018, our Austrian subsidiary has bundled its offerings under the Magenta product brand while retaining the familiar “T” logo as its company brand. Customers continue to enjoy the best network quality. The new branding clearly marks a fresh start for the company – the Magenta brand will be far more prominent in communication than it is in other markets. With the bundling of its mobile and fixed-network products, Magenta Telekom is following our Group strategy.

For more details, please refer to our media information.

MagentaTV: Netflix rate plan, TV stick, and co-productions. We are taking MagentaTV to the next level. Our brand-new MagentaTV Netflix rate plan now gives customers the option to include Netflix in their TV package. The new MagentaTV stick streams MagentaTV on any television irrespective of the customer’s ISP. We are also co-producing more content, with the two new productions Wild Republic and Children of Mars in the pipeline.

Awards SDG 16

We once again won a number of awards in the reporting year, the key ones of which can be seen in the following graphic.

For information on further awards received for our HR activities, please refer to the section “Employees.”

Major awards in 2019

For further information, please visit our website at: www.telekom.com/en/media/media-information