10 million DSL customers: T-Home’s success story in the broadband market

• No. 1 in new broadband adds for the seventh consecutive quarter and over 40 percent market share

• VDSL in 40 cities

• 10 other cities will follow in 2008

• 600 million channeled into broadband expansion since the start of 2007

• 200 million of it to develop rural areas

• EUR 0: T-Home offers better TV viewing for a trial period

• EUR 0: 2,500 radio stations: T-Home integrates comprehensive radio service

• EUR 0: Bundesliga live and interactive

• EUR 0: for the first half of the Bundesliga season

2008 is a crucial year for the expansion of Deutsche Telekom T-Home's broadband market leadership in Germany. In August, T-Home proudly welcomed its ten millionth DSL retail customer – resale customers included, the company now has a broadband customer base with over 13 million lines. This makes T-Home by far the most successful of Germany's broadband providers. In the domestic broadband market, T-Home took a share of over 40 percent of the new broadband customer market for the seventh consecutive quarter – convincing proof of its position as market leader. In the second quarter alone, T-Home succeeded in winning around 340,000 net new retail DSL customers.

"Attractive price models and improved service are the foundation on which our DSL success story rests. For us, the promising DSL market is of vital importance for the future, since all new business models have broadband technology as their starting point. Tomorrow’s business is about broadband and we are the No. 1," Timotheus Höttges, member of the Board of Management responsible for T-Home Sales & Service at Deutsche Telekom, commented during Deutsche Telekom’s press conference at IFA 2008. "We have laid the cornerstone for future success with new add market share of over forty percent."

More broadband for Germany – T-Home continues to rely on broadband technology

Multimedia and high-speed Internet with VDSL and T-Home

In the coming months, Deutsche Telekom will take further steps to drive expansion of its domestic broadband network. It is systematically implementing its expansion strategy, which enables more and more house-holds to connect to the high-speed network infrastructure, for example via VDSL. Deutsche Telekom has already upgraded over forty cities to the state-of-the-art high-speed VDSL network. As promised this spring, expansion activities will continue. During a second phase, another ten cities will be joining them this year: in Kiel, Potsdam, Rostock, Bielefeld, Freiburg, Hagen, Krefeld, Lübeck, Oberhausen and Solingen, preparations for rollout are already getting into top gear. Consistent pursuit of this expansion strategy is a vital basis for enabling 20 million customers to surf the Internet at speeds of up to 50 Mbit/s and use the Entertain service – in other words, enjoy better TV viewing – from T-Home.

Large-scale DSL expansion with T-Home
Thanks to investments totaling EUR 600 million in 2007 and 2008, Deutsche Telekom is set to achieve network coverage of 96 percent by the end of the year. This feat means that the company has taken yet another major step toward covering the "white spots" on the map, above all in rural areas. In the course of the previous and current years, a total of EUR 200 million has been invested to provide rural areas with high-speed Internet access.

"Deutsche Telekom is aware of its responsibility for Germany, and is equipping virtually the whole country with fast Internet lines. At the end of 2008, we will be supplying 96 percent of all households with DSL, in over eighty percent of them with lines featuring speeds in excess of 2 Mbit/s. In concrete figures, this means that 400,000 more households will be connected to the high-speed network in 2008 – a good 140,000 of them in areas that were previously without the service," Timotheus Höttges stated at the Internationale Funkausstellung in Berlin. "No other company invests as much in broadband expansion in Germany as Deutsche Telekom."

Today, customers in 750 cities and municipalities already benefit from speeds of up to 16 Mbit/s via VDSL, and in 50 cities from speeds of up to 50 Mbit/s by the end of 2009. IPTV via ADSL2+ is targeted for around 1,000 cities and municipalities by the end of 2008.

Entertain: "Better TV viewing" from T-Home
One important result of this targeted investment policy is the successful marketing of the Entertain packages. Entertain stands for "better TV viewing". In the Entertain world, viewers watch what they want, when they want. For example, innovative IPTV functions enable viewers to watch time-shifted television and record their favorite programs on the integrated digital hard drive recorder at the push of a button. The electronic program guide (EPG) provides information on the TV program for the next two weeks and makes it possible to record shows directly via an on-screen menu. A total of 150 TV channels and an online video shop with more than 2,600 movies on demand are available to viewers and round off the Entertain experience. A quarter of a million customers have already signed up for one of the Entertain packages with high-speed Internet access. By the end of 2008, this figure should increase to 500,000.

T-Home offers Entertain, better TV viewing, to try out
Customers have two months’ time to try out Entertain, the better TV. All those interested receive the hardware, including a digital hard drive recorder and WLAN router, delivered to their homes; if desired, the package is installed and connected for the customer free of charge. Technical availability of Entertain is naturally a prerequisite for using this service. After two months, the customer may continue to use the Entertain package for only an extra EUR 10 a month, or opt for the double flat-rate Call & Surf Comfort.

EUR 0: T-Home builds a comprehensive radio service into its Entertain packages
T-Home is set to add 2,500 radio stations to all its Entertain packages in November. Alongside popular German channels, this will include a large selection of international radio programs. Users will be able to navigate at speed through the list of radio stations thanks to the sorting option, for example by country of origin or music genre. They can also create a personal favorites list at the press of a button.

EUR 0: Bundesliga live and interactive – first half of the season for EUR 0
Right on time for the start of the season, T-Home is enhancing its Bundesliga Live service with the addition of a new interactive component. All Bundesliga subscribers can now call up the best goals, top match scenes or controversial referee decisions at the press of a button. The first half of the Bundesliga season is available for EUR 0 until mid September – it then costs EUR 9.99 per month.

EUR 0: integration of exclusive TV content on demand from Sat1, ProSieben and kabel eins
T-Home plans to cooperate with the ProSiebenSat.1 group in order to broadcast TV content on demand. The broadcasting group supplies a base of over 2000 TV movies, series, soaps and shows free on demand from the Entertain TV archive. Brainpool content such as Stromberg, Pastewka and Ladykracher, as well as the "Best of Sevenload" can also be found there.Innovation live: Entertain offers individual TV packages as add-ons Again from September, users will be able to subscribe to various TV packages that suit their individual interests. These can be added separately to Entertain. A total of 35 additional TV channels can be added. Genre TV packages are valid for a term of one month only, thus allowing flexible TV usage.

Innovation live: T-Home assumes pioneering role in content marketing on demand
Cooperation with Warner Studios in Hollywood makes it possible to offer the latest blockbusters as soon as they are issued on DVD. In taking this step, T-Home is establishing a new marketing model for the film industry. The latest highlight ensuing from its cooperation with Warner is the German film "Keinohrhasen" starring Til Schweiger. Concurrently with the DVD launch, users will be able to watch the movie on their home TV screens via Entertain – without having to make their way to the nearest video shop.