Prospectus-Final (clean) - Malta Financial Services Authority

Group StrategyThe strategies and expectations referred to in the following discussions are considered forwardlookingstatements and may be strongly influenced or changed by shifts in market conditions, newinitiatives Deutsche Telekom implements and other factors. Deutsche Telekom cannot provideassurance that the strategies and expectations referred to in these discussions will come to fruition.Please refer to "Forward-Looking Statements" and "Risk Factors" for descriptions of some of thefactors relevant to these discussions and other forward-looking statements in this Prospectus.Development of the Group's StrategyDeutsche Telekom is one of the world's leading service companies in the telecommunications andinformation technology industry and Deutsche Telekom plans to build upon this strong position in thelong term. Deutsche Telekom realises, however, that the market environment in which DeutscheTelekom operates will remain challenging. The telecommunications industry is marked by constant,dynamic change in the fixed-network, mobile communications and the Internet and is influenced byglobal trends.Infrastructure is and will remain the basis of Deutsche Telekom's business as society requires fasternetworks. Next-generation networks and standardised IT are of crucial importance in this regard ifDeutsche Telekom is to be efficient and successful. Telecommunications providers will also have tofocus increasingly on realising growth potential. In Deutsche Telekom's opinion, the mobile Internetand Internet services, for example, provide a wealth of growth opportunities. Deutsche Telekombelieves that customers expect secure and universal access to all services and from all devices. InDeutsche Telekom's view, cloud computing and dynamic computing provide considerable growthpotential for business customers. Furthermore, in the future, intelligent networks will support changesin industries such as energy, healthcare, media, and transportation/automotive. Overall, DeutscheTelekom still firmly believes that a strong national competitive position is vital for a profitable business.Deutsche Telekom has been responding to these challenges with the new Fix – Transform – Innovatestrategy it presented in March 2010. Deutsche Telekom's vision is still to become an internationalmarket leader for connected life and work. This is why Deutsche Telekom will continue to restructureits business model in the coming years, with investments in intelligent networks, with IT services andwith Internet and network services. The aim of this strategic approach is to expand DeutscheTelekom's activities across the entire value chain and position itself as an open partner for consumersand business customers as well as for the Internet sector. At the same time, Deutsche Telekom'sstrategy forms the framework for all of its corporate actions, including issues related to sustainabilityand human resources.Deutsche Telekom is gradually implementing its Fix – Transform – Innovate strategy in five strategicaction areas:• Fix• Improve the performance of mobile-centric assets.• Transform• Leverage One Company in integrated assets.• Build networks and processes for the gigabit society.• Innovate• Connected life across all screens.• Connected work with unique ICT solutions.Improve the Performance of Mobile-Centric AssetsIn all countries in which Deutsche Telekom primarily provides mobile communications services, it isplanning to enhance its performance and invest specifically in next-generation technologies, developinnovative services and expand its portfolio of mobile devices.In the United Kingdom, for instance, Deutsche Telekom's new joint venture Everything Everywhere gotoff to a good start in 2010 as one of the market leaders, measured in terms of the combined customerbase. In Poland, Deutsche Telekom reached a crucial milestone in further strengthening the subsidiary62