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CR brochure 2011

Broadband expansion in Germany. In 2010, Telekom was able to connect more than 1,000 towns in Germany that previously had no high-speed Internet service to the broadband network. About half of the connections are based on LTE radio technology, with the remainder using other radio or fixed network technologies such as UMTS or DSL. Telekom will connect an additional 1,000 towns to LTE in 2011. In many rural municipalities broadband expansion would result in financial loss due to low customer potential and high costs. In these cases, Telekom supports partnership-based solutions. The company informs the munici- palities about the costs and offers them various collaborative options. One example is civil construction work performed by the municipality. In 2010 the number of completed expansion projects rose to 800 compared to 720 in 2009. In connection with capacity expansion and progressing general expansion, around 360,000 additional households were given the chance to use high-speed Internet connections. An additional 700 to 800 projects are being planned for 2011. In cooperation with the local authorities, we are also planning microwave radio system solutions for DSL connection of rural areas as a cost-effective alternative to the expansion of the fiber- optic network. Broadband network expansion in Hungary and Croatia. The inter- national subsidiaries are also working hard to overcome the digital divide: The Hungarian Telekom subsidiary has been involved in a pilot project for broadband expansion since January 2011 as part of a national investment incentive project initiated by the Hungarian Development Agency: Nine municipalities with a total of more than 2,000 residents will receive broadband Internet access, including television and telephony. The Croatian subsidiary T-Hrvatski Telekom achieved the exemplary coverage range of 98 percent of households by the end of 2010 during its broadband expansion project. Telekom@School: Long-term commitment for German schools. Telekom is equipping around 34,000 general education and vocational schools with free Internet access within the framework of the Telekom@School infrastructure project. The company has already equipped some 30,000 of these educational institutions with broadband DSL connections since 2000. Schoolchildren and teachers thus have the opportunity to use new forms of communication and media during classes. In the spring of 2011 Telekom increased the speed of the Telekom@School connections from 6 to 16 Mbit/s. Schools located in areas hooked up to VDSL can get a VDSL connection for a low additional monthly fee. Long-term involvement in Croatia, Montenegro and Macedonia. Other international subsidiaries have been supporting schools and other educa- tional institutions in their countries for years. For 10 years now, T-Hrvatski Telekom, for example, has been providing free access to the high-speed Internet to over 2,600 elementary and secondary schools in Croatia as part of the Net in School project. The Croatian Ministry of Science, Education and Sports is the project’s partner. Telekom Montenegro has been providing schools in Montenegro with free high-speed Internet access for four years now. Around 150 elementary and secondary schools have benefited from the initiative so far. In a joint project with the Republic of Macedonia, Makedonski Telekom is working toward making high-speed Internet available free of charge to children and young people throughout the country. As part of the project, the subsidiary equipped all student residences in the Republic of Macedonia with the required network access in 2010. What is more, today around 1,950 classrooms in over 90 schools have high-speed Internet access. “Social Commitment.” There is often a great disparity between the importance that people attach to social commitment and the perceived performance of companies in this area. According to a repre- sentative survey in Germany, this disparity decreased from 12 percent to 8 percent for Telekom between 2009 and 2010. 10