American and european consumers to benefit from combined company's wireless communications services based on GSM, world's leading digital standard BONN, GERMANY, BELLEVUE, WA and WEST POINT, GA -- JUNE 1, 2001 - Deutsche Telekom AG (NYSE: DT) today announced that it has completed its acquisitions of VoiceStream Wireless Corporation and Powertel, Inc., forming the first transatlantic wireless communications operator utilizing the GSM digital wireless technology standard. The newly-combined company, with a spectrum license footprint covering 97 percent of the population of the United States, offers seamless services over a common technology platform based on GSM, the most successful worldwide digital wireless standard. It will provide customers in the United States and Europe with such advanced features as "one phone-one number-one bill" roaming, worldwide value-added services and high-speed GPRS wireless data applications.
VoiceStream will become part of T-Mobile International AG, Deutsche Telekom's mobile telephony subsidiary. With more than 51 million subscribers, and a group of 15 companies in Europe, Asia and, now, the United States, Deutsche Telekom is one of the world's leading mobile communications companies. VoiceStream will be the North American member of T-Mobile , headquartered in Bellevue, Washington, and led by VoiceStream's team of senior executives, including Chairman and Chief Executive Officer John Stanton, Don Guthrie, Vice Chairman and CFO, and Bob Stapleton, President and Chief Operating Officer. Today, including the Southeastern U.S. markets covered by Powertel, VoiceStream serves approximately 5.4 million customers in 38 states and the District of Columbia. VoiceStream, with its affiliates, owns licenses to provide service to more than 273 million people, covering approximately 97% of the U.S. population.
At a joint press conference in Bellevue, Dr. Ron Sommer, Chairman and CEO of Deutsche Telekom, welcomed VoiceStream as the newest member of the Deutsche Telekom team: "Today is a defining moment for both Deutsche Telekom and the global communications industry. Together, we are committed to building up a transatlantic mobile communications powerhouse. Deutsche Telekom and VoiceStream now have an excellent starting position in the United States, the most exciting market for growth in the communications sector. Perhaps more importantly, American and European consumers will benefit greatly from the formation of the first transatlantic GSM mobile operator."
Kai-Uwe Ricke, Board member of Deutsche Telekom and CEO of T-Mobile International, AG, also welcomed the over 15,000 VoiceStream and Powertel employees to the T-Mobile group, and added, "John Stanton and his team have been extremely successful in establishing VoiceStream as one of the fastest-growing, nationwide U.S. wireless communications companies, and we look forward to their continued leadership. Their commitment and effort will be essential to VoiceStream realizing the significant growth potential of the U.S. wireless communications sector, and allowing the company to maintain its leadership in 'New to Wireless' customer segment and the introduction of wireless data services. Already, VoiceStream customers can use their mobile telephones worldwide with one handset and a single number, and they will soon enjoy single-rate international roaming while in Europe. In addition, beginning today, the majority of T-Mobile's European customers will be able to roam across Europe and the U.S. at a single roaming rate."
John W. Stanton, Chairman and CEO of VoiceStream, said, "VoiceStream and Deutsche Telekom represent the 'best of the best.' VoiceStream has the best spectrum position, the best strategy, and the best people to drive industry growth in the United States. As a combined company, we will be able to buy on a global basis, develop strategies on a global basis, and offer advanced wireless services seamlessly on a global basis that will benefit our customers in every market in which we operate. American consumers will enjoy enormous benefits as VoiceStream becomes an even more competitive national operator, expanding our GET MORE service offering geographically and introducing wireless data products that are unparalleled in the industry."
Bob Stapleton, VoiceStream's President and COO pointed out that while some of VoiceStream's competitors have announced their intention to convert to the GSM standard over the next several years at significant cost, VoiceStream offers the benefits of GSM wireless communications to customers today. Adopted by about 400 net providers in more than 160 countries, the Global System for Mobile (GSM) communications technology platform accounts for approximately 70 percent of the total global digital wireless market.
| New Products and Services to be offered by T-Mobile and VoiceStream Several new VoiceStream and T-Mobile joint strategic initiatives were highlighted today: Services International Short-Code Dialing - T-Mobile customers can now access several features through short-code dialing, including voicemail and customer care. These short codes operate in most of T-Mobile's European subsidiaries, enabling customers to quickly utilize these services without resorting to long international dialing codes or different numbers for different countries. Other markets will follow soon. International, Single-Rate Roaming - T-Mobile today unveiled WorldClass, a new unique transatlantic, single-rate roaming package, enabling frequent travelers to use one mobile number, for one rate, to access wireless voice, data, and voicemail services in Europe and the United States. Initially offered to customers of T-Mobile's T-Mobil, One2One and max.mobil. subsidiaries, VoiceStream will launch this service for American travelers in fall 2001. Mobile SMS messaging - VoiceStream has introduced PING-PONG, a youth oriented, person-to-person messaging service that combines powerful Internet messaging functions with mobile SMS messaging. Ping-Pong uses AOL Instant Messaging, two-way wireless e-mail, push and pull information services, and a host of tools to personalize consumers' wireless and Internet experience. Ping-Pong works on all phones sold by VoiceStream and across its entire installed base. High-speed data and Internet access - VoiceStream will launch iStream, a high-speed data and Internet access service using VoiceStream's existing GPRS-based high speed-packet network. iStream will initially provide consistent throughput of 28-56Kbps for access to the Internet or corporate intranets. GPRS-based services provide "always-connected, always-on" functionality, eliminating the need to log on or dial up a data session. The networks are only in use when data is being transmitted, reducing the costs of providing services through network efficiencies. Products Wireless Devices - Devices with larger screens and improved browsers are a requirement for wireless data services in the United States. Together VoiceStream and Deutsche Telekom will work to bring innovative new devices to market that enhance mobility and complement home or business desktop applications including new phones, handheld PDA's with phone capability, and PC data cards that allow consumers to gain direct Internet access through their PC. VoiceStream will begin marketing these new services in the second and third quarters of 2001, and will accelerate its efforts in the fourth quarter of this year as compelling new devices become increasingly available. Markets VoiceStream has launched the successful GET MORE marketing program in 16 major U.S. cities over the last twelve months, including Dallas, Chicago, Milwaukee, and St. Louis and will continue to aggressively expand its nationwide presence first, by introducing VoiceStream branded service in Powertel's southeastern market. By the end of the year, VoiceStream will also begin providing service in Cincinnati and Dayton, Ohio and New Orleans, Louisiana. VoiceStream will continue to expand into lucrative markets in California, Nevada, and the Carolinas through 2002. About Deutsche Telekom Deutsche Telekom is Europe's largest communications company and one of the largest communications carriers worldwide based on 2000 revenues of 40.9 billion euros ($38.6 billion). The company is active in four key growth segments of the global telecommunications market: mobile communications, network access services, consumer Internet services and integrated IT and telecommunications solutions. Through T-Mobile , Deutsche Telekom's mobile telephony subsidiary, and through other subsidiaries and investments, Deutsche Telekom today serves more than 51 million mobile telephony customers worldwide. Deutsche Telekom offers its customers a complete range of fixed-line voice telephony products and services through more than 50 million access lines. Deutsche Telekom is a leading provider of high-speed digital access lines, with more than 900,000 new asymmetric digital subscriber line (T-DSL) services currently sold and 18.6 million channels using the information transfer standard ISDN (Integrated Services Digital Network) as of March 31, 2001. T-Online is Europe's largest consumer Internet service provider, with approximately 8.7 million subscribers. In January 2001, Deutsche Telekom launched T-Systems , Europe's second-largest provider of comprehensive IT and telecommunications services to business customers in more than 20 countries. For more information about Deutsche Telekom, visit http://www.telekom.de/international. About T-Mobile International T-Mobile International is a subsidiary of Deutsche Telekom, established in January 2000 to organize the company's international wireless operations. T-Mobile served some 34 million telephony customers as of March 31, 2001 through its majority controlled operations. Altogether, a total of more than 51 million customers worldwide subscribed to mobile services provided by Deutsche Telekom's subsidiaries and associated mobile companies as of March 31, 2001. Together these subsidiaries and companies today hold licenses to provide wireless services to more than 500 million people worldwide. By that measure, Deutsche Telekom is the number one global GSM wireless communications operator. T-Mobile owns 100% of T-Mobil in Germany, One2One in the United Kingdom and max.mobil. of Austria, and now VoiceStream and Powertel in the United States. Furthermore, it has a 61 % stake in RadioMobil of the Czech Republic, a 49.9% stake in Ben of the Netherlands, a minority stake in PTC of Poland, with 22.5% directly owned by T-Mobil (an additional 22.5% is owned by Deutsche Telekom), and a 36% stake in MTS, Russia. In addition, T-Mobile offers personalized mobile Internet services through T-Motion, a joint venture of T-Mobile and T-Online International. Deutsche Telekom stock is traded under the symbol "DT" on the New York Stock Exchange, and under the symbol "DTE" on the Frankfurt Stock Exchange. This press release contains certain statements that are neither reported financial results nor other historical information. These statements are forward-looking statements within the meaning of the safe harbor provisions of the U.S. federal securities laws. Because these forward-looking statements are subject to risks and uncertainties, actual future results may differ materially from those expressed in or implied by the statements. Many of these risks and uncertainties relate to factors that are beyond Deutsche Telekom's ability to control or estimate precisely, such as future market conditions, currency fluctuations, the behavior of other market participants, the actions of governmental regulators and other risk factors detailed in Deutsche Telekom's reports filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. Deutsche Telekom does not undertake any obligation to publicly release any revisions to these forward-looking statements to reflect events or circumstances after the date of this press release. |
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