Glossary

A

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).

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 et seq.).

B

Big data

Storage, preparation, processing, and analysis of large volumes of data.

Bitstream access

Wholesale service used by alternative telephone companies to provide broadband lines.

BNG – Broadband Network Gateway

BNG makes it possible to gradually implement a flat end-to-end production architecture for all-IP business customer and consumer services. Network elements (AGS1, AGS2, LER, DSR and BRAS) and configuration nodes are aggregated to simplify network management.

C

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.

Cloud computing

Refers to the dynamic provision of infrastructure, software, or platform services online. Apart from a high level of automation and virtualization, the services provided have to be multi-client-capable and include standardized hardware and software. Customers source these services on demand and pay based on actual usage. The communication infrastructure may be the Internet (public cloud), a corporate network (private cloud), or a mix of the two (hybrid cloud). Dynamic Services is a T-Systems product for the flexible procurement of ICT resources and services.

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 resellers pay 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/safety

Protection against Internet crime.

D

Desktop services

Global desktop services involve a variety of support services, including the outsourcing of the entire IT infrastructure. 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.

E

Entertain

Deutsche Telekom’s Internet Protocol TV service (see also IPTV). TV signals are transported over the digital subscriber line, facilitating interactive features such as time-shift TV or access to online video stores. Entertain provides hybrid offerings which use not only the DSL line but also the satellite infrastructure for delivering TV signals.

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.

F

Fiber-optic lines

Sum of all FTTx access lines (e. g., FTTC/VDSL, vectoring, and FTTH).

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.

FMC – Fixed Mobile Convergence

The merger of fixed-network and mobile rate plans for customers that have fixed-network and mobile contracts with Deutsche Telekom.

FTTB – Fiber to the Building or Fiber to the Basement

In telecommunications FTTB means that the fiber-optic cable is terminated in the user’s house (basement).

FTTC – Fiber to the Curb

In the FTTC architecture the fiber-optic 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 the fiber-­optic cable is terminated right in the user’s home or apartment.

FTTx

This includes the three options for fiber-optic roll-out: FTTB, FTTC, and FTTH.

G

Greenhouse Gas Protocol

The Greenhouse Gas (GHG) Protocol divides emissions of greenhouse gases into the categories of Scope 1, Scope 2, and Scope 3, depending on their source.

  • Scope 1 includes all emissions directly generated in the company, e.g., as a result of the consumption of fuel or fuel oil.
  • Scope 2 covers all indirect emissions associated with the generation of energy purchased by the company from external sources, e.g., electricity and district heating.
  • Scope 3 applies to all other emissions generated along the corporate value chain. This comprises both indirect emissions in the company itself (e.g., business trips, commuting), and emissions from upstream value chain stages (e.g., procurement, logistics) and downstream stages (e.g., during customer use of products and services, during disposal).

H

Housing sector

Business model: partnering between Deutsche Telekom and the housing sector.

Hybrid line

Combines the strengths of the DSL/VDSL fixed network and the LTE mobile network. While using the Internet at home the hybrid router transports the permanent data load with first priority via the DSL/VDSL line. During peak load the router automatically connects to the high-speed mobile network for down- and uploading.

Hybrid router

Routers that are able to combine the customer’s fixed and mobile bandwidths.

I

ICT – Information and Communication Technology

Intelligent network

Refers to a service-oriented centralized system that piggybacks onto an existing communication network, adding intelligent network components, and additional features in the process.

Interconnection

See MTR.

IP – Internet Protocol

Non-proprietary transport protocol in Layer 3 of the OSI reference model for inter-network communications.

IPTV – Internet Protocol Television

Refers to the digital transfer of television programs and films over a digital data network using the Internet Protocol (IP).

J

Joint venture

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

K

KPI – Key Performance Indicator

Measures the success, performance and/or capacity utilization of the company, its individual organizational units, or a machine.

L

LTE – Long Term Evolution

New generation of 4G mobile communications technology using, among others, wireless spectrum on the 800 MHz band freed up by the digitization of television. 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 cell phones, smartphones, and tablets.

M

M2M – Machine to Machine

Communication between machines. The information is automatically sent to the recipient. For example, in an emergency, alarm systems automatically send a signal to security or the police.

MIMO – Multiple-Input Multiple-Output

MIMO is a multiple-antenna technology used with LTE. It makes it possible to increase both the data rate and the quality of the service.

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).

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.

O

Optical fiber

Channel for optical data transmission.

OTT player – Over-The-Top player

Provider of IP-based, platform-independent services, such as WhatsApp.

P

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.

PSTN – Public Switched Telephone Network

Global public telephone network comprising elements such as telephones, connecting cables, and exchanges.

R

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.

Roaming

Refers to the use of a communication device or just a subscriber identity in a 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.

S

Servers managed and serviced

Computing & desktop services of the business customer segement. Comprises all systems – the physical and logical (virtual) systems.

Service revenues

Revenues generated with mobile customers from services (i. e., revenues from voice services – incoming and outgoing calls – and data services), plus roaming revenues, monthly charges, and visitor revenues.

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.

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.

U

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 customers’ premises or in their home, so it is also known as the “last mile.”

Utilization rate

Ratio of average number of hours billed to maximum possible hours billed per period.

V

Vectoring

Vectoring is a noise-canceling technology that removes the electro-magnetic 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.

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.

W

Wholesale

Refers to the business of selling services to third parties who sell them to their own retail customers either directly or after further processing.

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 PSTN line of Deutsche Telekom that enables competitors to provide an all-IP service to retail customers.

0-9

4G

Refers to the fourth-generation mobile communications standard that supports higher transmission rates (see LTE).

5G

The 5G mobile communications standard is to be introduced from 2020.