Annual Report 2013


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3G. Third-generation mobile communications standard that supports higher transmission rates (see UMTS).


4G. Used to refer to the fourth-generation mobile communications standard (see LTE).


AT&T transaction. For details on the AT&T transaction relating to T-Mobile USA and the effects of the termination of the agreement on the sale of the former T-Mobile USA to AT&T, please refer to the 2011 Annual Report (in particular pages 76 and 182 and 183).
Access. Internet access.
Adjacent industries. Related industries or sectors, the products and services of which complement each other.
All-IP (All Internet Protocol.) An all-IP network makes services such as VoIP (Voice over IP), IPTV (Internet Protocol Television), data transfer, etc. available to all users anywhere at all times. The data is transmitted in switched packets using the Internet Protocol (IP).
Android. Platform for mobile devices that is based largely on Linux and Java. Android is being developed by the Open Handset Alliance, a Google initiative that counts T-Mobile among its members.
App. Apps (short for applications) are programs, especially for smartphones. They are available via an online shop that is usually integrated into the smartphone’s operating system, and can be installed directly on the device.


Bandwidth. Denotes the width of the frequency band used to transmit data. The broader the bandwidth, the faster the connection.
Big data. The storage, preparation, processing, and analysis of large volumes of data.
Bitstream access. Wholesale service used by alternative telephone companies to provide broadband lines.


CRM (Customer Relationship Management.) A strategy by which a company manages its interactions with its customers and systematically structures the associated processes.
Carrier. A telecommunications network operator.
Cash capex. Investments in property, plant and equipment, and intangible assets (excluding goodwill) as shown in the statement of cash flows.
Connected life and work. Refers to the convenient management of all personal data and Internet services on any screen – whether (tablet) PC, cell phone, or TV set. Requires secure storage of data in the network, which can then be accessed by all devices via broadband networks.
Contingent model. Contract concluded over a long period of time with defined advance payment and minimum purchase requirement. In return, the reseller pays a reduced monthly charge for VDSL. This allows them to put together interesting offers for their own consumers without having to invest in fiber-optic lines of their own. This improves the utilization of Telekom Deutschland GmbH’s existing VDSL network. The current “contingent model” is being developed further to reflect the network build-out in terms of availability and bandwidth.
Cyber Security. Protection against online crime.


DSL (Digital Subscriber Line.) In Deutsche Telekom’s service portfolio as:
  • ADSL (Asymmetrical Digital Subscriber Line) for private end-customer lines. Technology used to transmit data at fast rates (up to 8 Mbit/s downstream, 16 kbit/s to 640 kbit/s upstream) via standard copper wire pairs in the local loop within a radius of approximately three kilometers.
  • ADSL2 plus: Successor product to ADSL that raises the maximum data rate to 16 Mbit/s (downstream) or 1 Mbit/s (upstream).
  • VDSL (Very high speed Digital Subscriber Line): Transmission technology that allows very high bandwidths (up to 50 Mbit/s downstream, up to 10 Mbit/s upstream) on short copper access lines with a maximum length of 500 meters.
De-Mail. The secure electronic counterpart to classic paper-based mail. With the new service, private individuals and companies can send and receive messages and documents securely, confidentially, and verifiably over the Internet.
Desktop services. Global desktop services involve a variety of support services, including the outsourcing of entire IT networks. In this context, Deutsche Telekom offers a full portfolio of corporate IT services, from server infrastructure and PC workstations through to application management and call center services that provide user support.
Double play. Refers to service packages combining Internet and voice communication.
Download. Refers to the downloading of files from a remote server over networks such as the Internet or mobile communication connections onto a local computer or other device such as a smartphone.
Dynamic Computing. A T-Systems product for the flexible procurement of ICT resources and services.


E-TASC (Electronics Tool for Accountable Supply Chains.) E-TASC is an online information system used throughout the industry for evaluating supplier risks in terms of sustainability. As a member of the Global e-Sustainability Initiative (GeSI), Deutsche Telekom played a leading role in the development of this system and continues to be involved in its ongoing enhancement.
ERP (Enterprise Resource Planning.) Refers to systems that help deploy an organization’s resources such as capital, equipment, and human resources as efficiently as possible in order to optimize business processes.
Embedded system. Refers to an electronic calculator or computer embedded in a technical system where the calculator either controls and monitors the system it is embedded in or is used for processing specific data or signals, for instance in connection with encryption, decryption, encoding, decoding, and filtering. Embedded systems perform functions – mostly unrecognized by users – in a variety of applications and devices such as medical equipment, washing machines, aircraft, automobiles, refrigerators, TVs, DVD players, set-top boxes, mobile phones, and other electronic entertainment devices. When used in complex systems, a wide range of otherwise autonomous embedded systems are usually combined in a network (e.g., in a vehicle or aircraft).
Entertain. Deutsche Telekom’s Internet Protocol TV service (see also IPTV). The TV signals are transported over the digital subscriber line, facilitating interactive features such as time-shift TV or access to online video stores.


FMC (Fixed-mobile convergence.) The integration of fixed-network and mobile technologies and/or rate plans.
FTTB (Fiber To The Building or Fiber To The Basement.) In telecommunications FTTB means that optical fiber cable is terminated in the user’s house (basement).
FTTC (Fiber to the Curb.) In the FTTC architecture the optical fiber cable is not terminated inside users’ homes (see FTTH) but in a cable distribution box (gray street cabinet). Existing copper technology is used for the last section of the connection to the user.
FTTH (Fiber to the Home.) In telecommunications FTTH means that optical fiber cable is terminated right in the user’s home or apartment.
Fixed-network lines. Lines in operation excluding internal use and public telecommunications, including IP-based lines. The totals reported in the combined management report were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown.
Flat rate. Rate plan for network access with unlimited online time and data volumes.


GHG Protocol. The Greenhouse Gas (GHG) Protocol divides emissions into the Scope 1, Scope 2, and Scope 3 categories, depending on the degree to which they can be influenced by the reporting company.
  • Scope 1 accounts for all direct GHG emissions.
  • Scope 2 accounts for indirect emissions associated with the generation of electricity, steam, or heat purchased from external sources.
  • Scope 3 accounts for all other indirect emissions associated with logistics, use of materials, supplies, and waste disposal, including emissions generated by service and manufacturing companies working for the reporting company and their upstream suppliers.
GSM (Global System for Mobile communications.) Global standard for digital mobile communications.
Gigabit. 1 billion bits. Unit of measurement for data transfer rates.
Gigabyte. 1 billion bytes. Unit of measurement for data storage.


HR. Comprises all aspects of personnel management at all levels: employees, areas, or units, and the company as a whole. Integral part of a company’s efforts to achieve its business targets.
HSDPA (High Speed Downlink Packet Access.) Packet-based protocol that enhances data rates in UMTS networks and lifts transmission speeds into the megabit range.
HSPA+. Evolved HSPA offering higher bit rates/bandwidths. HSPA+ enhances the data transfer rates further, making it an ideal standard for use in data-intensive mobile applications.
Hosting. Denotes the provision of storage capacity via the Internet. An Internet service provider’s most important services in relation to hosting are registering and operating domains, leasing web servers (in full or in part), and leasing space in a computing center, including Internet connections, regular and emergency power supply, etc.
Housing sector. Business model: partnering between Deutsche Telekom and the housing sector.
Hybrid router. Routers that are able to combine the customer’s fixed and mobile bandwidths.


IC (Interconnection.) Fixed-network termination. See MTR.
ICT (Information and Communication Technology.)
IP (Internet Protocol.) Non-proprietary transport protocol in layer 3 of the OSI reference model for inter-network communications.
IP-VPN (Internet Protocol Virtual Private Network.) A virtual private network or VPN – e.g., a company intranet – that uses the Internet Protocol. An IP VPN allows the connected Local Area Networks (LANs) of a company to swap data over a “secure” channel (IP tunneling). This makes it possible, for example, to provide secure access to a corporate network from any dial-up Internet access point in the world.
IPTV (Internet Protocol Television.) A system whereby a digital television service is delivered using the Internet Protocol. Refers to the digital transfer of television programs and films over a digital data network using the Internet Protocol (IP).
IT (Information Technology.)
Intelligent network. Denotes a service-oriented centralized system that piggybacks onto an existing communication network, adding intelligent network components and additional features in the process.
Internet service provider. An Internet service provider offers various technical services that are required to use or operate Internet services, usually in return for a fee.


Joint venture. Two or more companies set up a joint enterprise for cooperation.


LAN (Local Area Network.) Refers to a computer network that is restricted to company premises or a campus.
LTE (Long Term Evolution.) New generation of 4G mobile communications technology using wireless spectrum that was previously reserved for TV broadcasting before digital TV was introduced. Powerful TV frequencies enable large areas to be covered with far fewer radio masts. LTE supports speeds of over 100 Mbit/s downstream and 50 Mbit/s upstream, and facilitates new services for mobile phones, smartphones, and tablet PCs.


M2M (Machine to Machine.) Automatic exchange of information between machines. For example, in an emergency, alarm systems automatically send a signal to security or the police.
MTR (Mobile Termination Rate.) Termination refers to the transportation of a call, e.g., from the competitor’s network to the Deutsche Telekom network. When a call is transported to the mobile communications network, this is referred to as mobile termination. If the call is transported to the fixed network, this is called fixed-network termination, or simply interconnection (IC). Termination rates are the fee a telephone company must pay for network interconnection when a call is terminated in a third-party network.
MVNO (Mobile Virtual Network Operator.) Company that offers mobile minutes at relatively low prices without subsidized handsets. A mobile virtual network operator does not have its own wireless network, but uses the infrastructure of another mobile operator to provide its services.
Mbit/s (Megabits per second.) Unit of data transmission speed.
Mobile customers. In the combined management report, one mobile communications card corresponds to one customer. The totals were calculated on the basis of precise figures and rounded to millions or thousands. Percentages were calculated on the basis of the figures shown (see also SIM card).


NGA (Next-Generation Access.) Refers to access to next-generation networks such as IP networks, the optical fiber network (FTTH), and 4G mobile networks.
NGN (Next-Generation Network.) A communication network that reflects the convergence of conventional networks (telephone networks, mobile communications networks, etc.) and IP-based networks. All services are based on the Internet.


Optical fiber. Channel for optical data transmission.
Outsourcing. The assignment of corporate tasks and units to third parties.


PSTN (Public Switched Telephone Network.) Global public telephone network comprising elements such as telephones, connecting cables, and exchanges.
PTC transaction. For information on the agreement with the French company Vivendi, the Polish company Elektrim and Elektrim’s creditors regarding PTC and its impact, please refer to the 2010 Annual Report (in particular page 48) and the Interim Group Report for the period from January 1 to March 31, 2011 (in particular pages 7 and 64).
Postpaid. Customers who pay for communications services after receiving them (usually on a monthly basis).
Prepay/prepaid. In contrast to postpay contracts, prepay communication services are services for which credit has been purchased in advance with no fixed-term contractual obligations.


Rating. Assessment of the creditworthiness of securities or debtors by rating agencies. Deutsche Telekom defines a rating corridor in its finance strategy that is designed to safeguard access to the international capital markets.
Retail. The sale of goods and services to end users, as opposed to resale or wholesale.
Reverse factoring. Reverse factoring is a method of financing that enables suppliers to sell receivables.
Roaming. Denotes the use of a communication device or just a subscriber identity in a different network (visited network) rather than one’s home network. This requires the operators of both networks to have reached a roaming agreement and switched the necessary signaling and data connections between their networks. Roaming comes into play when cell phones and smartphones are used across national boundaries.
Router. A coupling element that connects two or more sub-networks. Routers can also extend the boundaries of a network, monitor data traffic, and block any faulty data packets.


SCM (Supply Chain Management.) Refers to the planning and management of all aspects of supplier selection, procurement, and logistics.
SIM card (Subscriber Identification Module card.) Chip card that is inserted into a cell phone to identify it in the mobile network. Deutsche Telekom counts its customers by the number of SIM cards activated and not churned. Customer totals also include the SIM cards with which machines can communicate automatically with one another (M2M cards). The churn rate is determined and reported based on the local markets of the respective countries.
SMS and MMS. The Short Message Service (SMS) is a telecommunications service for the transmission of text messages. It was initially developed for GSM mobile communications and later also became available in the fixed network. The next step up from the SMS is the Multimedia Messaging Service (MMS), which allows the transmission of various media such as text, images, animations, video, and audio clips in a single message. The terms SMS and MMS refer not only to the services, but also to the messages themselves.
Service revenues. Service revenues are revenues generated by mobile communications customers from services (i.e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues.
Smart metering. The service consists of the reading, processing, presentation, and billing of power and energy consumption, and other meters in industry and homes. Smart metering reduces costs considerably and paves the way for a mass-marketable service. In particular, the technology allows energy utilities, meter operators, and the housing sector to offer their customers innovative products and services, as it delivers consumption data virtually in real time.
Smartphone. Mobile handset that can be used as a cell phone, a web browser, and an e-mail reader simultaneously.
Stakeholder. The stakeholder approach is an extension of the shareholder value approach, a concept frequently used in business administration. In contrast to the shareholder value principle, which focuses on the needs and expectations of a company’s shareholders, the stakeholder approach attempts to appreciate the company against its overall social background and reconcile the needs of the different stakeholders. In addition to shareholders, stakeholders include staff, customers, suppliers, the government, and the public at large.


Tablet PC. A flat portable computer with a touchscreen that can be operated with a finger or pen. These compact multimedia devices enable users to surf the Internet, check their e-mail, access photos and videos, listen to music, make phone calls, and read electronic books anytime, whether at home or on the move.
TeraStream. A considerably simplified IP network concept that provides all services, including conventional telecommunications services (voice, IPTV, Internet access), from the cloud rather than via a network as is the case today.
Triple Play. Refers to packages combining fixed-network voice, data, and TV services. Broadband networks enable customers to use the IP-based services over a single line.


ULL (Unbundled Local Loop.) Competitors whose own networks do not reach into customers’ premises can rent unbundled local loop lines from Deutsche Telekom. Their networks end at the local exchanges. The ULL bridges the distance between the local exchange and the termination point on the customer’s premises or in their home, so it is also known as the “last mile.”
UMTS (Universal Mobile Telecommunications System.) Third-generation international mobile communications standard that unites mobile multimedia and telematics services in the 2 GHz frequency spectrum.
Utilization rate. Systems Integration: ratio of average number of hours billed to maximum possible hours billed per period.


VPN (Virtual Private Network.) A computer network that uses a public network to transmit private data. The data is “tunneled” through the public network and is usually encrypted in the process. However, the term “private” does not necessarily imply encrypted transmission. The variant commonly used today is the IP VPN that connects users via IP tunnels.
Vectoring. Vectoring is a noise-canceling technology that removes the interference between lines, enabling higher bit rates. However, in order to cancel noise, the operator must have control over all lines. This means that other operators cannot install their own technology at the cable distribution boxes.
Visitor. Visitors are customers of international mobile communications network operators who use voice or data services in a mobile network operated by a company of the Deutsche Telekom Group. The call or the transmitted data is routed via the network of the national company in question and terminated in another mobile or fixed network in the same or another country, or in the national company’s own network.


WLAN (Wireless Local Area Network.) Wireless networks for mobile Internet access. The network can also connect multiple computers to each other or to a central information system, a printer, or a scanner (often referred to as WiFi).
Wholesale bundled lines (IP-Bitstream Access/IP-BSA. ) Wholesale product for which Deutsche Telekom leases DSL lines to the competitor and transports the datastream via its concentrator network to the associated broadband point of presence (PoP), where the datastream is handed over to the competitor. In contrast to voluntary DSL resale, IP-BSA is a wholesale service required by the regulatory authority. This product is available in conjunction with a Deutsche Telekom PSTN line or as a DSL stand-alone variant (see also Wholesale unbundled lines).
Wholesale unbundled lines including IP-BSA Stand Alone/IP-BSA SA. Wholesale product not bundled with a Deutsche Telekom PSTN line, which allows competitors to offer an all-IP product range to end customers.
Wholesale. Refers to the business of selling services to third parties who sell them to their own end customers either directly or after further processing.