BONN, Germany -- Deutsche Telekom is applying to the Federal Network Agency for the approval of fees for the use of its cable ducts, dark fiber routes, and network access via its cabinets. Using Deutsche Telekom's infrastructure, the competitors can then themselves invest in expanding the broadband network with state-of-the-art fiber optic technology. For network access via the cabinets, the Company intends to install additional housings for other carriers alongside its own cable distributors. Furthermore, Deutsche Telekom has invited the industry associations to attend talks in August, where they will be able to discuss the network restructuring and expansion.

"The industry needs planning reliability – as soon as possible – in order to be able to implement what it has promised," said Niek Jan van Damme, Member of the Board of Management of Deutsche Telekom responsible for domestic business. The Group had already made specific offers to competitors several months ago, but with no result to date from the negotiations. Said Mr. van Damme: "We still firmly believe that negotiating solutions is the better course for the market. What we have realized, however, is that our ideas about prices are too far apart to reach a quick agreement.

Deutsche Telekom has already agreed a VDSL wholesale offer with Vodafone and 1&1, which enables both companies to offer their customers super-fast Internet access. The Group has also planned joint network expansion for 13 German cities together with Vodafone, EWE, M-Net and NetAachen. What is more, Deutsche Telekom has agreed a further 400 DSL partnerships with municipalities this year, which are due to be connected to the broadband network by the end of 2010. Mr. van Damme: "We are fully committed to our responsibility for Germany as a center of business, and want to make our contribution as part of a joint effort with other partners. No company is able to implement the federal government's broadband strategy alone, however."

Deutsche Telekom AG (NYSE: DT)