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Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2011

7To our Shareholders Highlights in the first quarter of 2011. Corporate transactions. Sale of T-Mobile USA. On March 20, 2011, Deutsche Telekom AG and AT&T Inc., Dallas, United States (AT&T) entered into an agreement on the sale of T-Mobile USA to AT&T. The agreement provides for a purchase price of USD 39 billion, consisting of USD 25 billion in cash and approximately USD 14 billion of AT&T common stock. As a result of this agreement, Deutsche Telekom recognizes T-Mobile USA’s assets and the directly associated liabilities in the consolidated statement of financial position as held for sale. T-Mobile USA’s profit/loss after taxes is recognized in the consolidated income statement as profit/loss from discon­ tinued operations. The prior-year figures in the consolidated income state­- ment have been adjusted accordingly with retroactive effect. The transaction is still subject to approval by the U.S. Department of Justice (DoJ) and the U.S. regulatory authority, the Federal Communications Commis- sion (FCC). The closing of the transaction is expected to be completed in the first half of 2012. For more information, please refer to the notes to the interim consolidated financial statements. Litigation settlements. Agreement concluded with French company Vivendi, Polish company Elektrim and the creditors of Elektrim. The agreement with Vivendi, Elektrim and others was concluded on January 14, 2011. Deutsche Telekom paid EUR 1.4 billion, thereby securing full, undisputed ownership of the Polish mobile operator PTC. Investments in infrastructure. 3G network build-out with HSPA+ technology. Deutsche Telekom is also rapidly expanding its range of mobile broadband technologies in the Europe operating segment. In the first quarter of 2011, for example, we upgraded the 3G network in the Czech Republic with fast HSPA+ technology in 20 additional towns and cities. In March, T-Mobile CZ became the first provider to offer its customers a maximum download speed of up to 21.6 Mbit/s. At the beginning of this year, we launched commercial operation of HSPA+ in Poland, now offering 42 Mbit/s in Warsaw. Network partnerships signed in Poland and the Czech Republic. The letter of intent signed with PTK Centertel in December 2010 for the shared use of network infrastructure and frequency spectrum in Poland was approved by the Polish Anti-Monopoly Commission (UOKIK) in March 2011. In February 2011, T-Mobile CZ and Telefónica O2 CZ signed a 3G network sharing agreement. This agreement currently relates to the provision of high-speed mobile Internet to areas without broadband coverage. Commercial trials are expected to begin in the second quarter of 2011. Fastest mobile broadband network in Hungary and best network in the Czech Republic. Based on measurement data recently published in Hungary and provided by all Hungarian mobile communications companies to the National Media and Communication Authority every year, T-Mobile Hungary has the fastest mobile broadband network in Hungary, with a download speed of up to 2.45 Mbit/s and an upload speed of up to 818 kbit/s. Independent tests carried out by P3 Communications on the 2G and 3G networks in many Euro- pean countries have found that T-Mobile CZ is the leading provider of voice and data services. T-Mobile CZ achieved these results by systematically investing in upgrading and building out the network. New products/Connected life and work. Deutsche Telekom presents PagePlace online kiosk at CeBIT 2011. Media distribution is one of the growth areas that Deutsche Telekom is focusing on. PagePlace is a digital kiosk and online library for newspapers, magazines and books. Our customers can purchase content at any time, wherever they may be, pay for it securely and easily, and access it from a range of terminal equipment. The beta version was launched at CeBIT for PC, iPad and iPhone. PagePlace should also be available for the first Android devices from the start of May.