Telekom to take over redundant mobile network sites from Telefónica Deutschland

• Agreement supports Telefónica Deutschland in the fast realisation of synergies from network integration
• Telefónica Deutschland takes the next step to optimize customers network experience and accelerates LTE roll-out
• Telekom customers to benefit from the additional power of the mobile network

In the course of its network integration, Telefónica Deutschland is transferring 7,700 mobile telephone sites to Deutsche Telekom. As planned the company hereby realizes a part of the announced synergies from the network integration. Furthermore, Telefónica Deutschland can leverage resources, which would have incurred to dismantle these redundant transmitters, to expand its LTE network. Financial impacts from the transfer have already been included within the communicated synergies related to the network integration. Deutsche Telekom, also, can realize its network expansion even faster and optimize its mobile network. The sites agreed by the parties will be taken over as soon as the approval by the antitrust authority has been granted. Both sides have agreed to maintain confidentiality regarding the financial details.

"The agreement with Deutsche Telekom has clear advantages for all concerned," said Cayetano Carbajo Martín, the Chief Technical Officer of Telefónica Deutschland. "Our efforts for eliminating redundant mobile telecommunications sites will be reduced significantly. In the interest of our customers this allows us an even stronger concentration on the future-oriented LTE roll out."

"“With this acquisition of mobile network base stations, we can realize our expansion faster and our customers will benefit from the additional power of the Telekom network even sooner," Bruno Jacobfeuerborn, Technology Head of Telekom Deutschland, explains his intentions. "The collaboration between Telefónica and Telekom in the tower-business, i.e. the joint use of base stations, will also be intensified by this co-operation."

Upon conclusion of the network integration Telefónica Deutschland will offer its customers the optimal network coverage with more than 25,000 sites. In general, dismantling redundant network sites is not only expensive, but also takes time and ties up personnel. Normally, any existing property leases have to be cancelled and equipment must be expertly dismantled.

The sites agreed by the parties are primarily rooftop-sites. Telefónica Deutschland can use them without restrictions until they become unnecessary through the integration of the O2 and E-Plus networks. In the future the sites will be managed by entities Deutsche Funkturm acquires with this transaction. Deutsche Funkturm was founded in 2002. It covers all activities around base stations of Deutsche Telekom. With over 700 employees Deutsche Funkturm acquires, plans, builds and manages base stations for all network providers.