Delivering best broadbandBruno Jacobfeuerborn, CTO Deutsche Telekom

THE DIGITAL GIGABIT SOCIETYThe DEMANDS on our network become more complex

The Network for the DIGITAL GIGABIT SOCIETYVision in 2012…

…All About fiber!

The Network for the DIGITAL GIGABIT SOCIETYReAlity check in 2017…

…is it only About fiber?

Challenges for network operatorsReAlity check in 2017…

Part of the

Future Use CasesAlready Became

Todays Use Cases

Challenges for network operatorsReAlity check in 2017…

Part of the

Future DemandsAlready Became

Todays Demands

Fiber Roll-out:

Challenge in terms of

costsAnd in terms of

Time

vs.

DEUTSCHE Telekom Integrated Network StrategyIntelligent Technology-mix for more coverage and Speed

Close to 100% LTE PoP-coverage in 2018

LTE ROLLOUT

Main focus is FTTH, GPON

FTTC with Vectoring in 2017 and 2018 with min. 50 Mbps

Fiber rollout

Top download-speed of up to 1 Gbps with Hybrid Access in fiber footprint

Hybrid Access

DSLLTEDevice

HybridHybrid Router

Introduction of Super-Vectoring with more than 250 MBit/s in 2018

G.Fast with up to 1 Gbps

Lab test XG-FAST: 11 Gbps over 50 m distance

Vectoring

Telekom leads the way with fiber rollout in GermanyFAST Internet: Germany leading in Europe

DE

15,1

UK

12,9

ES

7,8

NL

5,4

FR4,8

SE2,8

IT2,6

BE3,6

PL4,1

RO4,4HU

2,3

NO1,7

DK1,8

PT2,2

CH3,1

CZ

1,5

1) NGA : Next Generation Access technologies (VDSL, Cable Docsis 3.0 and FTTP) > 30Mbit/s. NGA coverage mid-2016.2) 2017 figures. NGA subscriber figures for countries with less than 1.5m NGA subscribers partially omitted.Source: European Commission, Analysis Mason

NGA Abdeckung in % der Haushalte1

> 80%

> 75%

> 70%

< 70%

NGA Kundenin Millionen2

vs.

NGA Coverage in Europe on the riseGermany above Eu Average

44%

47%

60%

64%

72%

72%

75%

75%

75%

79%

81%

81%

82%

89%

92%

93%

98%

99%

0% 25% 50% 75% 100%

Greece

France

Croatia

Poland

Italy

Romania

Slovak

Czech

Finland

Sweden

Spain

Hungary

Germany

Austria

UK

Denmark

Netherlands

Belgium

TOTAL NGA BROADBAND COVERAGE, JUNE 2016

48%

54%

62%

68%71%

76%

9%12%

18%

25%28%

40%

64%66%

75%

81% 81% 82%

2011 2012 2013 2014 2015 2016

NGA BROADBAND COVERAGE EU/GERMANY, 2011-2016

EU total

EU rural

EU average (76%) 1%

8%

10%

16%

22%

28%

31%

34%

37%

38%

41%

47%

49%

52%

59%

78%

88%

98%

0% 25% 50% 75% 100%

Greece

Finland

Croatia

Italy

Sweden

Spain

France

Romania

Poland

Slovak

Austria

Hungary

Germany

Czech

Denmarkt

UK

Belgium

Netherlands

RURAL NGA BROADBAND COVERAGE, JUNE 2016

DE total

DE rural1)

EU average (40%)

49%

Source: EU Digital Progress Report 20171) No historical data 2011-2014 reported

FTTH/B Rankings only tell part of the truth poor indicator for overall broadband performance

FTTH/B RANKING: poor FTTH/B ranking mistakenly interpreted as Germany “lagging behind”

SPEED: average connection speed in Germany superior to speeds in many countries with higher FTTH/B shares

COVERAGE: countries emphasizing FTTC outperforming countries emphasizing FTTH/B

0%

0%

1%

2%

2%

3%

3%

4%

5%

11%

14%

17%

18%

19%

27%

30%

35%

50%

Greece

Belgium

UK

Germany

Austria

Croatia

Italy

Poland

Czech

France

Finland

Netherlands

Hungary

Denmark

Slovak

Spain

Estonia

Sweden

FTTH/B SUBSCRIBER SHAREJUNE 2016

8.6

9.2

10.8

11.6

12.6

12.9

13.0

14.1

14.8

15.3

15.5

16.3

16.9

16.9

17.4

20.1

20.5

22.5

Croatia

Italy

France

Estonia

Poland

Portugal

Slovak

Austria

Hungary

Germany

Spain

Belgium

UK

Czech

Netherlands

Denmark

Finland

Sweden

AVERAGE CONNECTION SPEED MBPS, Q1 2017

44%

47%

60%

64%

72%

75%

75%

75%

79%

79%

81%

81%

82%

89%

92%

93%

98%

99%

Greece

France

Croatia

Poland

Italy

Slovak

Czech

Finland

Estonia

Sweden

Spain

Hungary

Germany

Austria

UK

Denmark

Netherlands

Belgium

NGA COVERAGEJUNE 2016

Source: EU Digital Progress Report 2017, IDATE, Akamai State of the Internet Report Q1 2017

EU-5: nationwide and rural coveragein Germany and UK boosting due to FTTC Deployment

NGA COVERAGE JUNE 2016

BE

NL

DK

UK

AT

DE

HU

ES

SE

FI

CZ

PL

HR

FR

IT

EE

0%

20%

40%

60%

80%

100%

30% 40% 50% 60% 70% 80% 90% 100%

NG

A c

over

age

RU

RA

L

NGA coverage TOTAL

EU5 country promoting FTTC

EU5 Country promoting FTTH/B

Source: EU Digital Progress Report 2017, Yoo (2014), company information

scores from the European commissionCountries Deploying FTTC get top

0 20 40 60 80 100

France

Spain

Portugal

Germany

UK

Sweden

Belgium

Fixed Broadband Mobile Broadband

Speed Affordability

European Commission’s Digital Economy and Society Index 2017Connectivity Dimension

weighted score

EU average

FTTC Homes Passedin %

98%

19%

22%

89%

75%

8%

Germany, UK, Belgium with

strong FTTC base above EU average

France, Spain, Portugal with

strong FTTH base low-scoring

FTTC

FTTH0%

Source: European Commission (2017), Digital Scoreboard; IDATE

NGA coverage in Germany higher than in countries emphasizing FTTH/B

AVERAGE CONNECTION SPEEDS, (MBPS)NGA-COVERAGE, JUNE 2016

9.9

11.7

13.9

20.6

10.811.6

15.3

22.582%

49%

79%

22%

79%

36%

47%

Total Rural

Germany

Sweden

Estonia

France

Q1 2016 / Q1 2017

31%

NGA : Next Generation Access technologies (VDSL, Cable Docsis 3.0 and FTTP) > 30MbpsSource: Akamai, European Commission

Telekom leads the way with fiber rollout in GermanyFAST Internet: Germany leading in Europe

455.500

58,000 41.000

Deutsche TelekomVodafone Versatel2010 2017

BIGGEST FIBER NETWORK in Germany

[km fiber, 2017]

∑ 99.000 km

Top 3 Operators in FiberDeutsche Telekom fiber rollout

+177,500 km[km fiber]

455,500

278,000„Telekom: Copper is Fiber as wellAlways a topic: Germany’s gap concerning fast

internet connections […]”

Technology option: G.Fast NEXT step to bring fiber closer to customers

1 2 3(A)DSL FTTC (with Vectoring/Supervectoring) FTTH/FTTdp/FTTB

FTTH and G.FastFiber into the Customer‘s

Building (FTTH)Fiber to the Customer‘s premises (basement),

G.fast in the customers premises (FTTB)

AP

1 Gbit/s Crossrate (= Up- + Downstream) over 150 Meter

FTTB: Agreements with building owner less complicated than for FTTH

But end game remains FTTH, because…

Most future-proof option due to „unlimited “ data rates

best quality (Reliability and stability)

lowest OPEX (all passive)

G.FAST AT DEUTSCHE TELEKOM

Flexible bandwidth WITH lte-boost on demandHybrid ACCESS

The Internet-Turbo

Deutsche Telekom’s Hybrid Router combines fixed-line and mobile network. First priority for down and upload is DSL. When more bandwidth is required, LTE is automatically added.

The best mobile networkSeamless connectivity over various technologies

Almost nationwide coverage. Allrounder for voice and data. EDGE in the entire network.

In all bigger cities and metropolitan regions.

Mobile data with up to 42 Mbpsin the entire network.

Building on the current coverage further rollout towards nationwide coverage and increase of performance planned:– LTE 800 MHz: mainly in rural regions with up to 50 Mbps.– LTE 900 MHz: nationwide LTE voice coverage, comparable with GSM– LTE Max: combines frequency spectrums in city centers for up to 500 Mbps.

2G/GSM/EDGE 4G/LTE/LTE Max3G/UMTS/HSDPA

Details regarding mobile network coverage: www.telekom.de/netzausbau

Wireless-TO-THE-home – long term targetMILLIMETER WAVE NETWORKS for GIGABIT BROADBAND

Utilize existing or new fiber together with LTE-A (Pro)/5G/mmWT

Network nodes on utility poles, traffic lights or other street furniture

CPE indoor -> No mobility

Cell radius (< 250m)

Potential to provide 1 Gbps per home

Last hop solution: alternative to FTTH

BROADBAND ACCESS USE CASE

Gradual towards a fully integrated access networkConvergence of fixed-line and mobile technologies

From the current INS rollouT… …Towards a convergent access network

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MFG

MFG

MFG

MFG

MFG

MFG

MFG

CO

KVz

MFG

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MFG

MFG

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CO

NVt

NVt

Today: FTTC (VDSL-Vectoring) + 2G/3G/4G Macro-Cells From 2020 on: FTTH/B/C + WTTH + 4G/5G Macro and Small-Cells

overview oF deuTsChe Telekom‘s NeTwork iN GermaNyFacts, stats and fIGURES

455.500 kmFiber network

4 billion EUROyearly Investments IN Germany

Up to 500 MBpsmobile internet with LTE

13 MIO. Broadband connectionsBiggest base of fiber customers of allEuropean Operators1

First HYBRID ROUTERFor more bandwidth in Mass market

25.000 new multifuction cabinetsmultifuction cabinets for faster INTERNET2

More than 7,500 cOOPERATIONsWith cities and municipalities1

30.000 km yearlyYearly expansion of our fiber network

1 Q2/2017 2 in 2016

Gigabit speedsFTTH: 1 Gbps Download and 500 Mbps upload

Delivering best broadband…bAsed on An pRAgmAtic, intelligent technology-mix

fiber CopperWireless

Hybrid Access