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Deutsche Telekom AG - Interim Group report - January 1 to September 30, 2011

46 Events after the reporting period (September 30, 2011). 2011 amendment to the Telecommunications Act. The German national parliament, the Bundestag, passed the amendment to the Telecommunications Act on October 27, 2011. The amendment has to be approved by the Bundesrat, however, the chamber representing the federal states, before it can enter into force. Amended to enforce changed EU direc- tives, the Telecommunications Act is to provide more incentives for investment in new infrastructure on the one hand and, on the other, includes further consumer protection requirements. EU consultation on costing methodologies for access networks. On October 3, 2011, the European Commission launched a consultation on costing methodologies for access networks in which it favors a concept where- by regulated wholesale prices based on copper networks will be reduced if the regulated company does not invest in fiber to the home (FTTH). If this concept is included in a European Commission recommendation, it could lead to a loss of revenue in the wholesale business in the medium term and, rather than promoting next-generation access networks, would make investing in them much more difficult. Deutsche Telekom and France Télécom-Orange procurement joint venture BUYIN commences operations. On October 7, 2011, after making all the corresponding announcements and ob- taining all necessary approvals, Deutsche Telekom and France Télécom-Orange announced the successful launch of their joint procurement entity BUYIN. The partners have pooled their procurement activities in the areas of terminal devices, mobile communications networks, and in significant portions of their fixed-network equipment and service platforms in a 50/50 joint venture. In addition, the two companies intend to launch pilot projects to explore other areas for inclusion in the joint venture at a later stage, including IT infrastructure and further IT areas. The inclusion of additional fixed-network components is currently under review by the German Federal Cartel Office. In addition to the cost savings that both partners will generate through this joint venture in the future, Deutsche Telekom will receive a conditional compensation payment.