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

36 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 proceedings cannot be estimated with sufficient certainty at this point in time. Mobile communications patent litigation. On April 24, 2012, the Düsseldorf Regional Court ruled in favor of the claim by IPCom against Telekom Deutsch- land 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. 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, taking the decision of the Federal Constitutional Court into account. Due to the decision of the Federal Constitutional Court dated January 17, 2012, Deutsche Telekom no longer discloses the contingent liabilities of around EUR 0.2 billion recognized in the 2011 Annual Report. 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. We continue to see no basis for holding Deutsche Telekom liable for the alleged 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. The financial impact of the proceedings cannot be esti- mated with sufficient certainty at this point in time. Contingent assets. This section provides additional information and explains recent changes in the contingent assets as described in the consolidated financial statements for the 2011 financial year. 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-Banken- gruppe 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. Related party disclosures. There were no significant changes at March 31, 2012 to the related party disclosures reported in the consolidated financial statements as of December 31, 2011, with the exception of the matter described below. The bond issued by the Everything Everywhere joint venture with a nominal amount of GBP 187 million as of December 31, 2011 was repaid to Deutsche Telekom in the first quarter of 2012. Executive bodies. Changes in the composition of the Board of Management. On July 4, 2011, the Supervisory Board appointed Prof. Marion Schick as successor to Thomas Sattelberger as the Board member responsible for Human Resources and Labor Director with effect from May 3, 2012. Furthermore,onFebruary22,2012,theSupervisoryBoardofDeutscheTelekom appointed Dr. Thomas Kremer as member of the Board of Management responsible for Data Privacy, Legal Affairs and Compliance. He will succeed Dr. Manfred Balz effective June 1, 2012. Events after the reporting period (March 31, 2012). Transfer of AWS spectrum licenses in the United States. In April, the U.S. regulatory authority for the telecommunications market, the Federal Communi- cations Commission (FCC), announced its approval of the transfer of Advanced Wireless Service spectrum licenses. The licenses were transferred effective May 4, 2012. The licenses were part of the compensation that AT&T had to pay to Deutsche Telekom following the termination of the agreement for the sale of T-Mobile USA. Deutsche Telekom recognized the right to the transfer of the licenses as of December 31, 2011 under other assets. Following their transfer, the licenses will be recognized under intangible assets. Agreement reached in 2012 collective bargaining. The contracting parties reached an agreement in the 2012 collective bargaining negotiations for employees of Deutsche Telekom AG and Telekom Deutschland GmbH on April 28, 2012 and May 7, 2012 respectively. One outcome of collective bargaining is that the salaries of employee covered by collective agreements will increase by 2.3 percent effective May 1, 2012, with no pay rise in the three previous months. In two further steps, the salaries will increase by an additional 2.1 percent respectively. The collective agreements each have a term of 24 months. 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).