Deutsche Telekoms offering new rate packages consisting of Internet, fixline telephony, mobile communications, and entertainment

T-Com now offering single-, double-, and triple-play - Price reductions of up to 30 percent - T-Mobile introduces inexpensive minutes and flat-rate packages - Bundled T-Mobile and T-Com rates with additional price advantages - The first real triple-play flat rate for Germany - T-Systems offers digital cinema

In advance of the of the IFA international consumer electronics trade show, on Thursday Deutsche Telekom AG introduced much simpler rate packages consisting of Internet, fixed-line telephony, mobile communications, and entertainment with price reductions of up to 30 percent. In addition to T-Mobile's mobile communications rates, the main components of the new rate offer are telephony and Internet bundles provided by T-Com's fixed-line business. In addition, both Group companies are offering their products in any one of various combinations with additional savings of up to EUR 150 over 24 months. T-Mobile and T-Com will be introducing the first real triple-play flatrate package for about EUR 81.

"We are opening a new chapter with the rate models we are presenting here today. T-Com has developed a straightforward rate schedule in which our customers can finally be offered an Internet and fixed-line flat rate from a single source following the merger. The T-Mobile rates are a market-driven evolution of the previous tariff system in conjunction with a competitive mobile communications flat rate. We can finally offer customer-oriented bundled tariffs all the way to triple-play flat rates for Internet, fixed line, and mobile communications services with clear price reductions," said Kai-Uwe Ricke, CEO of Deutsche Telekom.

T-Com has significantly simplified the rate portfolio and in the telephony-Internet combination, it can offer savings of up to 30 percent compared to market prices of the individual components. The Call&Surf Comfort rate (a double-play flat rate for phone calls and Web access) now costs EUR 49.95 per month - a savings of almost EUR 16 or about 24 percent less than the individual products purchased separately.

And when it comes to triple plays, T-Com takes subscribers into a new world of entertainment thanks to T-Home Class. In addition to inexpensive DSL telephony and fast Internet access with the 6,000-Kbit/sec DSL connection, this product offers first-class entertainment by way of video-on-demand. Using T-Online, the video-on-demand service lets subscribers choose from 1,200 movies including classics and US blockbusters. Moreover, customers have access to TV archives containing must-see television contents, such as selected German Soccer League games or favorite programs. The T-Home Classic entry-level package, including the T-Net phone connection, is available starting at EUR 65.84 per month.

The T-Home Complete Basic package includes the T-Home Classic package plus television reception by means of the new VDSL high-speed net-work (IPTV). In addition to Internet access and DSL telephony, customers can access a TV offering of up to 60 receivable channels, including major broadcast networks as well as private stations belonging to the RTL and ProSiebenSat1 groups. Video on demand and TV archives are also available. The T-Home Complete Basic package, including T-Net phone service and the DSL high-speed connection, is available for EUR 80.84 per month.

In addition to these rates, T-Com will also be offering service packages. For a fixed price of EUR 49.99, T-Com's customer service will assume responsibility for installing all ordered hardware and software components, such as PCs, PABXs, and WLAN routers.

"We will not win the fight for market share through pricing. We are not initiating a price war. We are fulfilling our responsibility as market leader and are closing the distance to our competitors within the regulatory framework," explained Ricke.

The first step in bundling products a new way is the bundle discount for T-Mobile and T-Com products. Every T-Com rate level, whether single-, double-, or triple-play, can be combined with Relax rates. The customers receive perks of EUR 50, EUR 100, or EUR 150 per level. Deutsche Telekom can thereby offer its customers integrated products towards quadruple-play starting at EUR 67.

"T-Com and T-Mobile are thereby taking the first steps into the quadruple-play segment: mobile and fixed network calling, broadband Internet access, and entertainment all from one provider," said Ricke.

T-Com and T-Mobile will thereby also be offering the first triple-play flat rate in Germany. The combination of Call&Surf Comfort and the new Relax Max offers unlimited fixed network calling within Germany, unlimited mobile calling into Germany's fixed network and T-Mobile network, and unlimited Internet access. The triple-play flat rate costs EUR 81.

Deutsche Telekom is introducing numerous innovative products at the IFA.

T-Com: The Future of Television and the Mobile Fixed Network

At the trade show booth, visitors can get a sense of what the future of television holds - T-Home, which will be rolled out on to the market in the fall of 2006. The new Internet protocol-based TV (IPTV) format will allow subscribers to receive interactive applications and on-demand products on their TV screens.

In addition, the company will be introducing the T-One fixed-line phone "to go". The device enables subscribers to use telephony via mobile networks, fixed networks, broadband connections, and WLAN.

T-Mobile: Mobile Internet and Mobile TV

Mobile Internet usage, which T-Mobile promoted with its innovative web'n'walk product, is continuously finding new application scenarios. The new HSDPA-capable end devices enable the High-Speed Downlink Packet Access channel to be used for Internet surfing on suitable mobile phones. At the IFA, T-Mobile is introducing such devices for the German market for the first time. Other novelties include web'n'walk boxes that serve as mobile connection devices for laptops and PCs, regardless of whether users are on the road or at home. By means of T-Mobile's UMTS or HSDPA network, three variants allow fast Internet access with bandwidths of up to 1.8 Mbit/sec, thereby increasing the availability of broadband Internet for these mobile communications devices.

T-Mobile is further expanding the UMTS-based, live-streaming product for mobile phones. Since the start of the football season, MobileTV has partnered Premiere to deliver top live games, live conference services and highlights of the football day to mobile displays on a total of three channels.

T-Systems: Digital Cinema

T-Systems is introducing a brand new solution geared toward a fully digital movie experience. Trucks will no longer deliver movies in celluloid rolls to movie theaters; instead, movies will be transmitted as data via satellite and fiber optic technology to computers run by movie theatre operators. Thanks to digital projectors connected to computers in the theatre, moviegoers can enjoy a previously unknown level in viewing experiences with a much greater sharpness. So that viewers too can benefit from this added value, T-Systems is offering cinema operators computers and satellite or fiber-optic line feeds from a single source. The German premiere of this innovative technology took place on July 27 in Germany. This technology will allow simultaneous débuts of films - even throughout Europe.

Deutsche Telekom is presenting its broad line of innovative products and services from September 1-6 at the 2006 IFA international consumer electronics trade show in Berlin under the motto of "Hello Future" in Hall 6.2. At the Science and Technology Forum in Hall 5.3, Deutsche Telekom Laboratories will present their results that will give visitors an insight into their R&D work for the Deutsche Telekom Group.