Prospectus-Final (clean) - Malta Financial Services Authority

ook that it has successfully launched in six countries, such as myPhonebook in Germany. DeutscheTelekom also places a great deal of emphasis on providing its customers with attractive handsetoptions. Initial sales of smartphones in Germany have been strong. Around 62% of all handsets sold inGermany in 2011 were smartphones.Deutsche Telekom is also positioning itself as pioneers in digital content, by linking and distributingpersonalised media content. Deutsche Telekom has made some targeted acquisitions, such asClickandBuy and STRATO, all of which complement Deutsche Telekom's portfolio in the high-growthInternet business. Deutsche Telekom also intends to be a pioneer for digital content, by linking anddistributing personalised media content. Deutsche Telekom's position in the European televisionmarket also grew in 2011. The number of Entertain triple play customers in Germany was 1.6 million,of which 111,000 use Deutsche Telekom's new Entertain Sat product, which includes Satellite in itstriple play offering Entertain. Deutsche Telekom's television customer base in Southern and EasternEurope has increased to 2.6 million.Connected Work with unique ICT SolutionsDeutsche Telekom provides customised ICT solutions for its business customers and draw on theservices of T-Systems in the ongoing standardisation of Deutsche Telekom's internal IT solutions. Inpursuit of this task, T-Systems will continue to be restructured with the goal of increasing its revenueand profitability.Deutsche Telekom has developed intelligent, innovative offerings centering on secure cloud servicesfor its business customers. Deutsche Telekom is positioning T-Systems as an open partner, also forother sectors, with the aim of leveraging growth opportunities for ICT solutions in sectors that areundergoing major changes. As part of this initiative, Deutsche Telekom has created three newbusiness areas for developing intelligent network solutions, energy, healthcare and the connected car.In the energy business area, Deutsche Telekom signed an agreement with the meter operatorVOLTARIS for the recording, transmission and processing of energy data as well as trial sales ofsmart electricity meters and green power rates from E.ON in more than 50 Telekom shops. In thebusiness area of connected cars, Deutsche Telekom has joined forces with Continental to develop anopen and flexible infotainment concept for vehicles.Growth Areas of Deutsche TelekomThe advances in the strategic action areas that form the Fix – Transform – Innovate strategydiscussed above are having a positive and direct effect on Deutsche Telekom's principal growth areas.The mobile Internet is Deutsche Telekom's largest growth area and includes all revenue that itgenerates with mobile data services.Another very important growth area for Deutsche Telekom is the connected home. Here, DeutscheTelekom bundles all revenues that it generates with its existing double- and triple-play packages, i.e.,its fixed-network-based voice, data, and television services. This area also includes future innovativeproducts for the connected home, such as the Communication Suite or Home Gateway.Deutsche Telekom is also bundling all its Internet services in a single area that essentially consists ofthree pillars:• online advertising (e.g., on the web pages of the Scout group, a well-known real estate and rentallisting service in Germany, on cell phones and on Deutsche Telekom's television offerings);• the digital content of Deutsche Telekom's Load family (music and video downloads); and• "near access services", which include the roll-out of websites and the sale of security software.In an additional growth area, Deutsche Telekom measures all of T-Systems' external revenue, whichincludes, in particular, the business with innovative cloud services.The intelligent network solutions growth area comprises business in sectors that are undergoing majorchanges. Deutsche Telekom created three new business areas that are developing and marketinginnovative solutions to these sectors, such as energy, healthcare and automotive.Deutsche Telekom's strategies may, of course, be adopted and modified to respond to opportunitiesand changing conditions. As disclosed in past years, Deutsche Telekom may embark on capitalexpenditure programs and pursue acquisitions, joint ventures or full or partial dispositions or64