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Deutsche Telekom AG - Interim Group report - January 1 to March 31, 2012

25Interim Group management report Risks and opportunities. This section provides important additional information and explains recent changes in the risks and opportunities as described in the combined manage- ment report for the 2011 financial year (2011 Annual Report, page 131 et seq.). Readers are also referred to the Disclaimer at the end of this report. Litigation. Prospectus liability proceedings. In the model proceedings (“Musterver- fahren”), the responsible senate of the Frankfurt Higher Regional Court post- poned the date of the announcement from April 25, 2012 to May 16, 2012. Eutelsat arbitration proceedings. Eutelsat S.A. is seeking revocation by French courts of the ruling of the court of arbitration which refused to include Media Broadcast GmbH in the arbitration proceedings due to lack of jurisdiction. As part of the arbitration proceedings, Eutelsat S.A. submitted its statement of claim on February 29, 2012. The financial impact of the proceedingscannotbeestimatedwithsufficientcertaintyatthispointintime. Shareholder litigation. In its ruling of January 6, 2012, the Cologne Regional Court dismissed in its first instance the nullity and rescission suit filed by a shareholder against resolutions adopted by the Deutsche Telekom shareholders’ meeting in 2011 approving the actions of the members of the Board of Manage- ment and Supervisory Board, and seeking the nullity of the annual financial statements for the 2010 financial year. The shareholder has appealed the decision. Litigation concerning decisions by the Federal Network Agency. In March 2012, the Cologne Administrative Court largely revoked the approval of the one-time charges for the leasing of unbundled local loop lines from 2004. This decision is not yet final and legally binding. Should the judgment become final and binding, the Federal Network Agency will have to set the rates again. Year-end bonus for civil servants. In a decision dated January 17, 2012, the Federal Constitutional Court ruled that the abolition of the year-end bonus for Deutsche Telekom civil servants is constitutional. This move does not violate the principle of equal pay laid down in Article 3 (1) of the Basic Law in conjunction with Article 33 (5) of the Basic Law. The Federal Administrative Court now has to rule on the current litigation on claims for payment of the difference between the payment under the Federal Act on Bonus Payments and the reduced payment under the Deutsche Telekom Special Allowance Ordinance,takingthedecisionoftheFederalConstitutionalCourtintoaccount. ClaimfordamagesbyKabelDeutschlandGmbH.TelekomDeutschlandGmbH was notified in early April that Kabel Deutschland Vertrieb und Service GmbH (KDG) had filed a claim with the Frankfurt Regional Court; we have not yet been served with the complaint. KDG demands a reduction in the annual charge for the rights to use cable duct capacities in the future, and the partial refund of payments made in the past in this connection. The financial impact of the pro- ceedings cannot be estimated with sufficient certainty at this point in time. Mobile communications patent litigation. On April 24, 2012, the Düssel- dorf Regional Court ruled in favor of the claim by IPCom against Telekom Deutschland GmbH concerning a breach of an IPCom patent in connection with the sale of UMTS-enabled devices manufactured by HTC and Nokia. On April 25, 2012, the European Patent Office in Munich ruled that the disputed patent is not legally valid. Both decisions are not yet final and legally binding/ valid. We will appeal against the ruling of the Düsseldorf Regional Court and currently expect that it will not be enforced. Claims for damages due to price squeeze. In April, two further competitors asserted their claims in court: QSC is seeking damages of EUR 7 million, DOKOM of EUR 4.5 million, plus interest in each case. Anti-trust proceedings. European Commission proceedings against Slovak Telekom and   Deutsche Telekom. On May 8, 2012, the European Commission decided to send a statement of objections to Slovak Telekom and to Deutsche Telekom. In this statement of objections, it communicates its preliminary opinion that Slovak Telekom, in whichDeutscheTelekomAGholdsa51-percentstake,has breachedEuropean anti-trustlawontheSlovakianbroadbandmarket.TheEuro­ pean Commission intends to make the parent company, Deutsche Telekom, liable for this as well. WecontinuetoseenobasisforholdingDeutscheTelekomliableforthealleged breach of anti-trust law by Slovak Telekom. Furthermore, we are convinced that Slovak Telekom complies with applicable law. Intense competition and the ongoing price erosion on the Slovak broadband market argue against any obstruction of competitors by Slovak Telekom. The statements of objections are not yet the final decision. Should the Commission uphold its allegations in the course of the proceedings, it may impose a fine on Slovak Telekom and Deutsche Telekom. Action concluded in the first quarter of 2012. Contingent asset – Claim for compensation against the Federal Republic   of Germany and Kreditanstalt für Wiederaufbau. Following the ruling of the Federal Court of Justice in 2011 in favor of Deutsche Telekom, the state- owned KfW-Bankengruppe refunded the costs and related interest incurred by Deutsche Telekom for a settlement in a class action by shareholders in the United States. In April 2012 Deutsche Telekom received the total amount claimed – including interest incurred in the meantime – of approximately EUR 96 million on the basis of a contractual agreement concluded in March 2012. In addition, Deutsche Telekom was successful in claiming EUR 20 million to be paid to the D&O insurance company from which Deutsche Telekom had already received a refund in anticipation of the KfW payment. This concludes the legal dispute. Furthermore, Deutsche Telekom intends to defend itself and/or pursue its claims resolutely in each of these court, conciliatory, and arbitration proceedings. Regulation. Regulation of fixed-network and mobile termination charges in Germany. On April 18, 2012, the Federal Network Agency’s draft regulatory orders for fixed-network termination (IC) and mobile termination (MTR) were published. Although the Federal Network Agency does not plan to further tighten regula- tion through a “pure LRIC” approach for the regulation of charges, there is still a risk that charges will be cut further. In addition, the scope of regulation was also extended to fixed-network termination in next-generation networks. EU Roaming Regulation from July 2012. The EU Commission’s draft of a new Roaming Regulation dated July 6, 2011 is to be adopted in June following a compromise concluded between the European Parliament and the European Council on March 27, 2012 and is to enter into force on July 1, 2012. The con­ ditions were tightened compared with the draft from July 6, 2011, in that the price caps are to be even lower than previously planned. The comprehensive wholesale access obligation – for MVNOs and others – remains unaffected, as is the unbundling of roaming and national services planned from July 2014.

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