Autor / Thema der Präsentation 13.08.2007 Autor / Thema der Präsentation EPP-ED Public Hearing: ‘Telecom Package’ Roland Doll, Vice President International Government Relations, Deutsche Telekom AG Brussels, March 05 2008

Autor / Thema der Präsentation Deutsche Telekom in Europe… 13.08.2007 Autor / Thema der Präsentation Operation of Fixed and/or Mobile networks Provision of integrated ICT solutions for business costumers Denmark Sweden Germany Russia Great Britain Poland Czech Republic Slovakia The Netherlands Hungaria Belgium Croatia Switzerland Montenegro As a result, Europe has lost its one-time leadership in broadband services. In 2006, it installed one million fiber-optic lines in the subscriber network (FTTX), thereby lagging far behind Japan and Korea, which installed 8 and 2 million respectively, and being passed by the U.S., which installed 1.8 million. Austria Turkey Portugal Macedonia Spain Italy 05.03.2008

Autor / Thema der Präsentation Asia and the US successfully extend their fiber-based infrastructure. 13.08.2007 Autor / Thema der Präsentation Number of fibre-based connection subscribers (IDATE 2007) 12 2006 10 8 6 Subscribers in Mio. 4 2004 2007 2 2007 2004 As a result, Europe has lost its one-time leadership in broadband services. In 2006, it installed one million fiber-optic lines in the subscriber network (FTTX), thereby lagging far behind Japan and Korea, which installed 8 and 2 million respectively, and being passed by the U.S., which installed 1.8 million. 2004 Europe* USA Asia** * EU-5, The Netherlands, Sweden ** Korea, Japan (2007 figures n.a.) Source: IDATE (2007) 05.03.2008

Autor / Thema der Präsentation Investment levels in telecommunications - Successful turnaround after deregulation. 13.08.2007 Autor / Thema der Präsentation Telecommunications-Investment per capita (OECD 2007) US Dollar 100 150 200 2003 2004 2005 Asia** USA Europe* Europe lags behind competing economic regions in terms of Telco-investments. Per capita levels are 50% higher in the US than in Europe. In addition, investment rates in the US are rising due to consistent deregulation. Result: the investment gap is widening. *EU-15 **Japan, Korea Source: OECD (2007) 05.03.2008

Autor / Thema der Präsentation Limits on Internet access capacity will eventually hamper innovation and growth. 13.08.2007 Autor / Thema der Präsentation 1) nemertes research, The Internet Singularity, Delayed: Why Limits in Internet Capacity Will Stifle Innovation on the Web, November 2007 05.03.2008

Autor / Thema der Präsentation Deregulation intended by Review ‘99 has not been achieved despite competitive market development. 13.08.2007 Autor / Thema der Präsentation Chart by European Commission, DG Infso, Nov. 2001, road show on the Review ’99 05.03.2008

Autor / Thema der Präsentation Conclusions. 13.08.2007 Autor / Thema der Präsentation The European Telecoms sector faces major challenges: against the backdrop of shrinking revenues in the sector, new fibre based access networks and next generation mobile broadband networks have to be rolled out to secure Europe’s competitiveness in the next decade. Europe lags behind East Asia and North America in the deployment of high-speed next generation access networks and in overall investment levels. Rapid increase in data traffic will lead to a multiplication of capacity required by consumers and businesses from fixed and mobile networks. The regulatory concepts of the past have been successful in opening up former monopolistic markets but they are not adequate for stimulating investments in new fibre based access networks. The review must give answers how to adapt the regulatory regime to the investment challenge facing the industry. If we want to stimulate growth in the telecommunications sector with positive spill over effects for the entire EU economy, deregulation must now be implemented, instead of further extending regulation. In order to achieve such a move towards the application of general competition law, legally binding exit rules are needed. 05.03.2008