Prospectus-Final (clean) - Malta Financial Services Authority

STATUTORY AUDITORSDeutsche Telekom AG as Issuer and GuarantorThe statutory auditors of Deutsche Telekom AG for the financial year ended on 31 December 2011were PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft ("PWC"), Friedrich-Ebert-Anlage 35-37, 60327 Frankfurt am Main, Germany. The statutory auditors of Deutsche TelekomAG for the financial year ended on 31 December 2010 were PWC and Ernst & Young GmbHWirtschaftsprüfungsgesellschaft ("E&Y"), Mittlerer Pfad 15, 70499 Stuttgart, Germany. PWC and E&Yare members of the chamber of public accountants (Wirtschaftsprüferkammer).GENERAL INFORMATION ABOUT DEUTSCHE TELEKOMIntroductionThe legal and commercial name of the Company is Deutsche Telekom AG. Deutsche Telekom AG isa private stock corporation organised under German law registered with the local court (Amtsgericht)of Bonn under the number HRB 6794. The registered office is located at Friedrich-Ebert-Allee 140,53113 Bonn, Federal Repubic of Germany, and its telephone number is +49 (228) 181-0.Corporate PurposeAccording to Article 2 of the Articles of Association (Satzung) of Deutsche Telekom AG its object areactivity in all areas of telecommunications, information technology, multimedia, information andentertainment, security services, sales and brokerage services, e-banking, e-money, collection,factoring and reception and surveillance services as well as any services connected with these areas,and also in related areas in Germany and abroad. Deutsche Telekom AG is entitled to enter into allother transactions and take all other measures deemed appropriate to serve this object. It may alsoset up, acquire and participate in other undertakings of the same or similar kind in Germany andabroad, as well as run such undertakings or confine itself to the administration of its participation. Itmay spin off its operations wholly or partly to affiliated undertakings, provided that applicable legalrequirements, such as requisite shareholder resolutions, are satisfied.Historical BackgroundDeutsche Telekom is an integrated telecommunications provider offering its customers around theworld a comprehensive portfolio of state-of-the-art services in the areas of telecommunications and IT.The provision of public telecommunications services in Germany was long a state monopoly, asformerly provided in the constitution of Germany. In 1989, Germany began to transform the postal,telephone and telegraph services administered by the former monopoly provider of such services intomarket-oriented businesses, and ordered the former monopoly into three distinct entities along theirlines of business, one of which was Deutsche Telekom's predecessor, Deutsche BundespostTelekom. At the same time, Germany also began the liberalisation of the German telecommunicationsmarket. Deutsche Telekom was transformed into a private stock corporation effective 1 January 1995.The operation of networks (including cable networks) for all telecommunications services, other thanpublic fixed-line voice telephony, was opened to competition in Germany on 1 August 1996, when thenew legal framework for the regulation of the telecommunications sector in Germany, theTelecommunications Act, became effective. As required by the Telecommunications Act, andmandated by the directives of the E.U. Commission, the telecommunications sector in Germany wasfurther liberalised on 1 January 1998, through the opening of the public fixed-line voice telephonyservices to competition.Since then, Deutsche Telekom has faced intense competition and has been required, among otherthings, to offer competitors access to its fixed-line network at regulated interconnection rates.48