4/11/2014 – strictly confidential, confidential, internal, public – 1

Winning with Partners – the new operator mantra

Joseph Noronha, Deutsche Telekom

4/11/2014 2

Looking back – building everything from ground up…. Mantra of those days – build it – and they will buy it!

A push rather than a pull market

People had limited options

Building “stuff” was expensive and required deep pockets

4/11/2014 3

Fast forward to today – consumer is literally spoilt of choice The old mantra no longer applies (at least in many cases)

Abundant choices

Better educated

Cheaper options

All primarily fueled by the internet

Better customized

4

Spotify is changing the Music Industry Forbes Jan, 2013

4/11/2014 4

Digital Innovation happens outside the company These are all billion dollar firms!

4/11/2014 5

The Impact Operators all around the world are acutely feeling the heat!

Musicload / Gamesload closed

Musicload & Gamesload will be closed down by mid year 2014

“no chance against other platforms such as Amazon, Apple etc” - die Welt (01/2014)

Skype/ WeChat as threats

“Skype/ WeChat bigger threat than carriers” – China Mobile Chairman (02/ 2013)

SMS volume up by only 2.1% despite increase in penetration by over 7% - impact of messaging apps

Telefonica Digital restructured

Telefonica Digital was restructured (02/ 2014)

Operations being consolidated within the parent

SMS revenue decline

Cannibalization of SMS/ IM revenue by OTT players

SMS traffic fell from 10bn messages/ month to 3bn in 1 year (2011) – (10/2011)

4/11/2014 6

DTAG Strategy Winning with Partners is at the heart of DTAG strategy

Seamless connectivity

for the Gigabit Society

Winning with Partners

Secure cloud solutions

Best-in-class customer

experience

Single Interface Localized approach Simpler tech interfaces Easier contracting

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Winning with Partners in Action

4/11/2014 8

Winning with Partners in Action

4/11/2014 9

Winning with Partners in Action

4/11/2014 10

Winning with Partners in Action

Single Wireless Speaker

Addressing multiple segments

Moving into lifestyle devices

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Opening up new areas The accessory business – from speakers to supporting a lifestyle.

Why speakers – because its all part of the Connected Life concept!

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Enabling the DTAG Digital Transformation

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Enriching Access

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Expediting Rollouts

THANK YOU!