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

Development of revenue and profits

26 Assignment of frequencies. In mobile communications, 2012 and 2013 will see the extension of expiring licenses and the assignment of new frequencies in Germany as well as at foreign subsidiaries. This will give rise to general risks from the uncertainty with regard to the scope and availability of future spectrum as well as in terms of the costs of acquiring frequency spectrum. In Hungary, a new state-owned mobile communications company will enter the market in 2012 following the awarding of frequency. Incumbent network operators are obligated to offer upstream services to this company. Magyar Telekom has appealed against the frequency award. Intensified regulation for international subsidiaries. Regulation is also on the increase internationally. In the fixed network, Magyar Telekom (Hungary) was obligated to provide access to all elements of the access network and to give the market at least six months’ notice of the build-out of the fixed network. In Croatia, in a decision by the regulatory authority on March 21, 2012, the regulation of Hrvatski Telekom and Iskon Internet was extended to include the retail market for broadband Internet access and the broadcast of television programs, with ex-ante price regulation. In mobile communications, the regulatory authorities in Greece, the Czech Republic, Slovakia and Bulgaria proposed in some cases substantial reductions in mobile termination rates. At the time of preparing this report, neither our risk management system nor our management could see any material risks to the Company’s continued existence as a going concern. Events after the reporting period (March 31, 2012). Development of revenue and profits. For further details on the transfer of AWS spectrum licenses in the United States and the conclusion of the 2012 collective bargaining negotiations for Deutsche Telekom AG and for Telekom Deutschland GmbH, please refer to “Events after the reporting period” in the section “Significant events and trans- actions” in the consolidated financial statements in this Interim Group Report (page 36). For further explanations on the proceedings relating to “Claim for damages by Kabel Deutschland GmbH,” “Mobile communications patent litigation,” “Claims for damages due to price squeeze,” and “European Commission proceedings against Slovak Telekom and Deutsche Telekom,” please refer to the section “Risks and opportunities” in this Interim Group Report (pages 25 and 26). The statements in this section reflect the current views of our management. To date, there is no evidence that the development of revenue and profit as published in the 2011 combined management report have significantly changed (2011 Annual Report, page 149 et seq.). Accordingly, the statements made therein remain valid. For additional information and recent changes in the economic situation, please refer to the section “The economic environ- ment” in this interim Group management report. Readers are also referred to the Disclaimer at the end of this report.