TELEKOM RECYCLES MORE THAN 1,500 KM OF CABLE IN GERMANY ALONE. STATEMENT BY OUR CHAIRMAN OF THE BOARD OF MANAGEMENT. „YES, I CAN!“ INITIATIVE HAS REACHED MORE THAN 50,000 CHILDREN AND YOUNG PEOPLE SINCE IT WAS LAUNCHED.
TELEKOM HELPS CUSTOMERS REDUCE CO2 WITH SECURE CLOUD SERVICES. TELEKOM REQUIRES SUPPLIERS IN MORE THAN 50 COUNTRIES TO GUARANTEE BASIC HUMAN RIGHTS. STATEMENT BY OUR CHIEF HUMAN RESOURCES OFFICER.
TELEKOM RANKED AT THE TOP AMONG DAX COMPANIES WITH AROUND 9,300 TRAINEE POSITION OFFERS. “WE CARE” APP ILLUSTRATES TELEKOM´S CR ACTIVITIES. TELEKOM RECOGNIZED FOR ITS NETWORK QUALITY.
Corporate responsibility report 2012.
2 Contents. 6 8 9 10 12 15 16 17 19 20 21 23 24 27 30 37 39 42 54 57 58 59 61 62 63 64 66 67 68 70 71 73 75 76 77 About this report Statement by the Chairman of the board of management Statement by the Chief human reSourCeS offiCer group profile independent aSSuranCe report strAtegy & mAnAgement ViSion ValueS & guiding prinCipleS Cr Strategy action areas Cr key performance indicators Socially responsible investment internationalization Cr goVernanCe Cr program Stakeholder inVolVement Stakeholder expectations formats of involvement ComplianCe riSk & opportunitieS management data priVaCy goVernment relationS & regulatory iSSueS regional added Value nAtionAl compAnies albania auStria bulgaria Croatia CzeCh republiC franCe germany greeCe hungary maCedonia malaySia
3 78 79 80 81 82 84 85 86 87 88 90 94 95 96 97 98 100 102 104 105 106 109 montenegro netherlandS poland romania SloVakia united kingdom Spain uSa networks network & infraStruCture expanSion fixed-line & broadband technologies 2nd & 3rd generation mobile communications 4th generation mobile communications mobile CommuniCationS & health transparency information participation research & partnership enVironmentally friendly network infraStruCture network upgrading Climate technology & energy use green data centers 111 customers 112 114 117 119 122 123 125 128 130 133 134 135 baSiCS for produCt deVelopment & produCt deSign Climate and enVironmentally friendly produCtS & SerViCeS barrier-free produCtS & SerViCeS CuStomer CommuniCation phone & Cell phone reCyCling ConSumer proteCtion proteCting minorS CuStomer SatiSfaCtion reSearCh & innoVation Smart grids & smart metering Connected cars e-health
4 136 society 137 138 145 150 151 153 154 155 158 160 162 163 165 engagement@telekom Corporate volunteering & corporate giving partnerships with ngos disaster relief media skills eduCation “yes, i can!” initiative deutsche telekom foundation Commitment to training & development Start-up support and grant programs SponSorShip Sports sponsorship Cultural sponsorship 166 employees 167 171 173 178 181 184 188 190 hr reSponSibility Corporate Culture diVerSity & equal opportunitieS employee reCruitment employee inVolVement & SatiSfaCtion performanCe & deVelopment health & Safety CompenSation 191 workforCe & organizational reStruCturing 194 suppliers 195 199 200 202 204 207 SuStainability Strategy for proCurement Supplier SeleCtion Supply Chain management SoCial auditS 2012 audit results international Collaboration
5 208 climAte & environment 209 212 214 218 220 221 223 226 Climate proteCtion Climate protection initiatives energy management enVironmental management reSourCe effiCienCy at the workplaCe waSte management & diSpoSal Climate-friendly mobility biodiVerSity 228 FActs & Figures 229 231 233 237 240 245 249 251 254 256 259 264 266 268 273 eConomiC indiCatorS Socially responsible investment Suppliers financial indicators enVironmental indiCatorS energy Co 2 emissions mobility used cell phone collection & waste generation other environmental indicators SoCial & hr indiCatorS Social commitment employee satisfaction diversity & company pension scheme training & development employee health workforce ideas management
About this report 6 about this report. telekom has provided extensive information to the general public about its objectives, its activities and the progress made in the relevant econo- mic, ecological and social areas as part of corporate responsibility (Cr) reporting since 1996. issued in 2007 formed the transition to our current Cr reporting. Since 2008 the telekom group has been publishing a comprehensive Cr report each year, which enabled us to satisfy our stakeholders‘ increa- sed need for information on economic, ecological and social issues. the title „we take responsibility“ is used for the fifth consecutive time since it is an expression of telekom‘s long-term commitment to Cr. it is our intention to become a leader in our industry as a responsible com- pany. in this undertaking, the report is a central communication tool that informs our internal as well as external stakeholders of the progress we have made on this path between march 2012 and february 2013, and of the goals we are setting for the future. Additional sources for cr-relevant content. in addition to this online 2012 Cr report, we also provide information on our corporate responsibility activities in our annual report, in our human resources report and in our data privacy report. we report on telekom‘s current Cr activities on the telekom group‘s website under the heading „responsibility“. the international subsidiaries provide information about their Cr commitment on their internet portals and in their own publications. in order to reduce the complexity of our report, we have often provided links to other internal and external websites. for example, the informa- tion provided by the international subsidiaries is available through the subsidiaries‘ profile pages in the 2012 Cr report. RepoRting peRiod, scope of application and taRget gRoups. the 2012 Cr report is a group report that includes many international subsidiaries in which telekom holds a majority stake. any deviations are marked accordingly. this report ties in with the 2011 Cr report. the reporting period for the various topics spans from march 01, 2012 to february 28, 2013. all quantitative data and indicators refer to the 2012 calendar year. any deviations are marked accordingly. this Cr report is aimed at our stakeholders. these include analysts and investors, Cr ranking and rating agencies as well as non-governmental organizations. however, it also addresses other stakeholders such as clients, emplo- yees, and representatives from the worlds of science, research, educa- tion and politics. looking back on deutsche telekom’s cR RepoRting. deutsche telekom has been reporting on its sustainability activities in various publications since 1996. from 2003 through 2006 we publis- hed a combined annual hr and Sustainability report. an interim report online RepoRting since 2010. we have been publishing our Cr report exclusively online since the 2010/2011 reporting year to meet the increasing requirements and changing user preferences of our stakeholders. the online 2012 Cr report has been available since June 19, 2013 in german and english. we give readers who are not familiar with the concept of Cr an effective introduction to the report on the start page. Service functions such as the download section, search and dialog functions as well as interactive indicator views facilitate individual use. the „find out more“ button can be used to call up background information on many topics that go bey- ond the presentation of the current developments. together with this online report we are also publishing an e-paper with a summary of selected developments in the reporting period. the e-paper is entitled, „we take responsibility. an overview of corporate responsibi- lity in 2012.“ the international subsidiaries can use an online tool to add information on their respective Cr activities to the report and then use the report for their own Cr communication. the next Cr report will be published in q2 of 2014. „We caRe“ cR app. we released the „we Care“ Cr application in 2012 as a supplement to telekom‘s online Cr report. the app is available as a free download for the smartphone operating systems android and apple ioS as well as for tablets. this innovative presentation of our Cr commitment provides an introduction to this complex topic—in a simple and entertaining, yet also self-critical way. Some of the content from the Cr report has been integ- rated under its own section in the app and is updated every year. our goal in providing the „we Care“ app is to get a broad target group exci- ted about the topic of corporate responsibility and encourage them to participate. selection of the main topics foR the cR RepoRt 2012. we conducted a multiple-phase materiality process in q1 of 2013 to help us select our reporting topics. this is an integral part of our annual Cr reporting. the process is a tool to help identify the topics with maxi- mum relevance for our internal and external stakeholders .
About this report 7 all reviewed content of this report are marked with effective until the next Cr report is published. individual sections of the report that were subject to the audit of our 2012 annual report have been labeled accordingly. and will remain implementation of high inteRnational RepoRting standaRds. telekom‘s 2012 Cr report fully complies with the guidelines (g3) of the global reporting initiative (gri). this also applies to the gri telecom- munications Sector Supplement in the 2003 pilot version that is appli- cable to companies in the telecommunication industry. Compliance with both catalogs of requirements was reviewed by the gri, which awarded the highest application level, „a+“. this Cr report also serves as a Cop (communication on progress) from telekom as part of the united nations global Compact . the glo- bal Compact Cop provides an overview of specific measures used to put the global Compact principles into practice. stRuctuRe of the cuRRent online RepoRt. the online 2012 Cr report has been designed as a progress report that focuses on the key developments of the reporting period. the rea- der can access the six main sections of the report by using the naviga- tion bar: networks Customers Society employees Suppliers Climate & environment the six sections mentioned above are supplemented by three others: the Strategy and management section describes the management of Cr processes and the group-wide integration of telekom‘s Cr strategy. the majority of the subsidiaries whose Cr activities are described in this report are presented on profile pages. these can be found below the national companies menu item. in the facts and figures section, consolidated and commented indicators provide information about our progress in the past few years. assuRance engagement. Selected kpis in the 2012 Cr report from germany as well as from our international subsidiaries t-ht hrvatski telekom (Croatia), magyar tele- kom (hungary), ote and Cosmote (greece) and t-mobile uSa were audited by the auditing firm pricewaterhouseCoopers (pwC) as part of an assurance engagement. the following sections were also audited: Strategy and management Suppliers facts and figures the independent assurance report can be found under the assurance report menu item.
About this report Statement by the Chairman of the board of management 8 statement by the Chairman of the board of management. deaR ReadeRs, deutsche telekom recognizes its responsibility for the environment and society. that is why we have been reporting on our corporate responsi- bility activities for years now in a comprehensive, transparent format. we have been doing this voluntarily and not as the result of legal reporting requirements, such as the legislation currently being prepared by the eu. as this report impressively illustrates, we assume responsibility in many areas. i would like to discuss two of these areas in more detail because of their considerable importance for society and for us as a company: climate protection and access to high-speed networks. information and communications technology (iCt) is not necessarily the first thing that comes to mind when you think about climate protection. however, digital life and work contribute significantly to creating a low-carbon society. the Smarter2020 study, which was presented in doha in 2012 and in which telekom played a key role, shows that iCt has the potential to reduce Co emissions worldwide by 16.5 percent. that is around ten times the total amount of greenhouse gas emissions in germany. 2 we develop innovative applications and technologies to tap this poten- tial, helping our customers reduce their carbon footprint. Video confe- rencing, to name just one small example, can replace many of our customers‘ business trips. Smart energy management helps our custo- mers reduce their electricity consumption. we are pursuing our own ambitious climate protection goals as well. we are switching our networks over to the more energy-efficient internet protocol, initiating a generational shift in mobile communications tech- nology and improving the energy efficiency of our data centers. we are also pointing the way when it comes to mobility with our company fleet. the average Co germany have been reduced from 125 g/km in 2011 to 120 g/km. that means that we have already achieved the levels that the european union has set for 2015 as part of its climate protection goals. emissions produced by all new telekom cars in 2 our involvement in climate protection is not an isolated effort but rather a central component of a comprehensive strategy. with this strategy, we resolutely put the principles of the united nations‘ global Compact into practice. we made an official commitment to these principles in 2000, the year the global Compact was introduced. our efforts are focused on those areas where we feel we can contribute the most to the sustainable development of our society. these include climate protection as well as our action areas „Connected life and work „ and „Connecting the unconnected.“ to achieve progress in these areas we need to provide high-speed net- work access to as many people as possible with innovative, energy- efficient technologies for more sustainable products and services. to do this, we continue to increase our investment in the expansion of state-of-the-art broadband networks, even when the market trend points the other way. our investment over the next three years will total at almost eur 30 billion. with our new vision „deutsche telekom — my first choice for connected life and work,“ we plan to put customer experience in the limelight even more than before. not only do we want to provide our customers with transparent information, we also want to engage in dialog with them. we listen. and not only when talking about new devices and technolo- gies but also, and more importantly, when it comes to issues that affect our communities. but find out for yourself. form your own opinions about our efforts to promote climate protection, sustainable ways of living and working, online safety and social cohesion. i hope you will find this report both informative and inspiring. Sincerely, rené obermann
About this report Statement by the Chief human reSourCeS offiCer 9 statement by the Chief human resourCes offiCer. deaR ReadeRs, dynamic markets are offering new business opportunities all over the world. the technological shift and increasingly individualistic lifestyles are triggering new customer needs — constant change is the only con- stant. it is up to telekom to find effective solutions to these challenges and to help design the transformation process. our human resources depart- ments make an important contribution to our efforts. the focal point of the work they do is shifting — from cultural transformation to supporting a transformation culture. we provide a framework that inspires and moti- vates our employees, gives them the space they need and provides them with opportunities to develop their individual skills and potential. we promote an environment in which people experience constant change as a chance instead of a threat — and where they have the cou- rage to assume responsibility for our company‘s success. but we do not lose sight of long-term challenges, making the deutsche telekom group one of the leading forces in the sustainable development of the environ- ment, our society and the world of business. our new human resources Strategy, which we approved in early 2013, was designed to help us meet these challenges. based on our vision, „hr accelerates the success of the company and its employees,“ we contribute significantly in this area so that our employees and organiza- tional units are able to do their best for our company in a constantly changing environment. one key pillar in putting our new hr strategy into practice was to set up the group transformational Change & Corpo- rate responsibility unit. the purpose of this new unit is to advance our corporate culture in terms of innovation, transformation, entrepreneur- ship and social responsibility. by interweaving these topics, we are able to strengthen our employees‘ capacity to think and act responsibly and independently. our employees‘ sense of responsibility can already be seen in the fact that they are heavily involved in their communities. they volunteer at day care centers and schools, give courses on internet and cell-phone use to seniors and participate in activities to protect the environment. one excellent example of our employees‘ involvement is our „responsibility wins“ trainee competition, in which 700 apprentices and cooperative university students submitted more than 80 community and environ- mental projects. the abundance and quality of this year‘s submissions shows that our trainees are interested in more than just professional advancement. the entire company benefits from their enthusiasm and from their creativity. however, as the board member responsible for human resources, i also believe it is important to maintain fair working conditions and to guarantee basic human rights beyond our corporate borders. we adopted social, community-based values and principles in our Social Charter in 2003. this charter demands compliance with internationally recognized social standards, which our business partners are also required to observe. the objective behind our sustainable procurement strategy is to make sure that the companies involved in our supply chain are in compliance with our defined social and environmental minimum standards. we ask suppliers about their commitment and involvement in sustainability topics before entering into a business relationship with them. when necessary, we request additional, specific information over the course of the business relationship. we also conduct regular audits in the form of „social audits“ at our suppliers on site to monitor compliance with our sustainability criteria. we work together with our suppliers as a reliable partner during these audits and provide them with support when needed. there are several escalation phases that go into effect if discrepancies arise. our primary objective is to collaborate closely with our suppliers in order to come up with solutions that are in line with our sustainability standards. „we take responsibility“ is more than just the title of our Cr report. to us, „we take responsibility“ is an expression of our comprehensive Cr approach that goes beyond short-term goals and that includes every single deutsche telekom employee. marion Schick
About this report group profile 10 group profile. deutsche telekom is one of the world‘s leading integrated telecommuni- cations companies, with approximately 132 million mobile customers, 32 million fixed-network lines and almost 17 million broadband lines in around 50 countries. we offer consumers as well as corporate and busi- ness customers a comprehensive portfolio of products and services in the areas of fixed-line/broadband, mobile communications, internet and internet tV as well as other innovative solutions for connected life and work. we were able to generate revenues of eur 58.2 billion with a staff of some 230,000 employees worldwide in the financial year 2012. the group is expressly committed to its corporate responsibility and bases its actions on economic as well as social and ecological criteria. in line with our goal of becoming a global leader in connected life and work, we plan to lead the way in corporate responsibility (Cr) too. gRoup stRuctuRe and opeRating segments. telekom‘s organizational and management structure comprises the operating segments germany, europe, united States, Systems Solutions as well as group headquarters & Shared Services. germany: the germany operating segment comprises all fixed-- network and mobile activities in germany. in addition, it provides wholesale telecommunications services for the group‘s other opera- ting segments. Continued demand for broadband products in the fixed network and mobile communications has driven revenues in these fields. we have held our own well in the market in the face of regulatory interventions and intense competition by focusing on value in the fixed-line sector. our mobile customer base developed positively despite intense competition. revenue at the operating segment in 2012 was 2 percent lower than the previous year, with the decrease being only half as much as that for 2011. europe: the europe operating segment comprises all fixed-network and mobile operations of the international subsidiaries in greece, romania, hungary, poland, the Czech republic, Croatia, the nether- lands, Slovakia, austria, bulgaria, albania, the f.y.r.o. macedonia, and montenegro, as well as the everything everywhere joint venture in the uk. in addition, various international subsidiaries also offer iCt solutions to business customers. the europe operating segment also includes the international Carrier Sales & Solutions unit, which mainly provides wholesale telecommunications services for the group‘s other operating segments. in 2012, our europe operating segment showed robust development in terms of the customer base despite intense competition and the still strained economic situation in most of the countries in this segment. our europe operating seg- ment generated total revenue of eur 14.4 million in 2012, down 4.7 percent compared with the prior-year level. usA: the united States operating segment combines all mobile activities in the u.S. market. total revenue for the united States operating segment was eur 15.4 billion in the financial year 2012, an increase of 3.8 percent compared to eur 14.8 billion in 2011, which was due to fluctuations in the currency exchange rate. in u.S. was completed on april 30, 2013. the new company, in which new york Stock exchange under the name t-mobile uS since may 1, 2013. dollars, total revenue declined by 4.1 percent year-on-year due primarily to a decrease in service revenues partially offset by an increase in equipment revenues associated with t-mobile uSa‘s Value plans. the business combination of t-mobile uSa and compe- titor metropCS was announced on october 3, 2012. the transaction deutsche telekom holds a 74 percent share, has been listed on the systems solutions: the Systems Solutions operating segment bundles business with iCt products and solutions for large multina- tional corporations under the t-Systems brand. in the financial year 2012, order entry at the segment increased substantially year-on-- year by 18 percent. this was due to the conclusion of major new deals, such as those with the Catalan government, Shell, Clariant, bp, daimler, british american tobacco and the Swiss industrial group georg fischer. group headquarters & shared services . group headquarters & Shared Services comprises all group units that cannot be allocated directly to one of the operating segments. group headquarters is responsible for strategic and cross-segment manage- ment functions. the Shared Services unit, which provides services pri- marily in germany, is responsible for all other operating functions not directly related to the operating segments‘ core business activities. in addition to typical services such as financial accounting, human resour- ces services, and operational procurement, Shared Services also inclu- des Vivento, which is responsible for providing employees with new employment opportunities as part of the workforce restructuring pro- gram, real estate Services, and the mobility Solutions unit, a full-service provider of fleet management and mobility services. business development in 2012. net revenue in the 2012 financial year was eur 58.2 billion, slightly down by 0.8 percent compared with the prior year. intense competition, price changes imposed by regulatory authorities, and the strained eco- nomic situation in most countries in our europe operating segment had a negative effect. net exchange rate effects of around eur 1.1 billion on the proportion of net revenue generated internationally, especially from the translation of u.S. dollars into euros, had a positive impact on net revenue.
About this report group profile 11 our united States and Systems Solutions operating segments both increased their revenue on a euro basis, whereas our europe and ger- many operating segments recorded a decrease in revenue. Adjusted ebitDA. the adjusted ebitda of eur 18 billion achieved in fiscal year 2012 means a decrease of 3.8 percent compared to the prior year. net exchange rate effects of eur 0.3 billion, especially from the translation of u.S. dollars into euros, had a positive effect on the development of adjusted ebitda. with these results, we achieved the target we origi- nally communicated for the year. net profit/loss. we recorded a net loss of around eur 5.3 billion, primarily due to the recognition of an impairment loss in connection with the agreed busi- ness combination of t-mobile uSa and metropCS. tax income for the financial year amounted to eur 1.5 billion. Free cash flow and net debt. free cash flow of the group amounted to eur 6.2 billion, eur 0.2 bil- lion less than in the prior year. net debt decreased by eur 3.3 billion or 8.1 percent compared with the end of 2011 to eur 36.9 billion. for detailed information about the group‘s performance and telekom‘s financial data, please refer to the 2012 annual report.
About this report independent aSSuranCe report 12 independent assuranCe report. to Deutsche telekom Ag, bonn, germany. we have been engaged to perform a moderate assurance engagement [i] in respect of observing the aa1000 accountability principles (type 2 engagement) and in respect of selected sustainability information in the 2012 Corporate responsibility report (the „Cr report“) of deutsche telekom ag, bonn (the „Company“). our assurance engagement rela- ted to selected individual disclosures and selected complete german pages from the group‘s 2012 Corporate responsibility report website with information from the reporting year 2012. in cases where our review covers the entire content of the pages, as in the Suppliers and Strategy sections, these pages are marked with the symbol . indivi- dual disclosures reviewed by us, such as information under the heading „facts and figures“ or individual qualitative information in the Climate and environment, Society, Customers and employees sections are mar- ked directly with the symbol referred or linked to from the web pages were not the subject of the assurance engagement. . any unmarked pages or disclosures management‘s responsibility. it is the responsibility of the Company‘s management to comply with the principles of inclusivity, materiality and responsi- veness as defined in the accountability principles Standard (2008) (the „aa1000 accountability principles“), and (gri). to prepare the sustainability information in the Cr report in accordance with the criteria set out in the Sustainability reporting guidelines Vol. 3.1 (pp. 7 to 17) of the global reporting initiative this responsibility includes the conception, implementation and main- tenance of systems and processes for ensuring compliance with the aa1000 accountability principles and preparation of the Cr report using assumptions and estimations for individual Cr disclosures that are appropriate under the given circumstances. practitioner‘s responsibility. our responsibility is to express an opinion, based on our assurance pro- cedures, as to whether any matters have come to our attention that cause us to believe that, in all material respects, the systems and processes set up by the Company are not suitable for compliance with the aa1000 accountability principles of inclu- sivity, materiality and responsiveness, or the disclosures and pages of the Cr report marked with the symbol have not been prepared in compliance with the criteria of the Sustainability reporting guidelines Vol. 3.1 (pp. 7 to 17) of the gri. these selected disclosures can be found in the sections „Strategy and management,“ „Suppliers“ and „facts and figures“ in the Cr report. we have also been commissioned to make recommendations on the further development of sustainability management and Cr reporting. we conducted our independent assurance engagement in accordance with the aa1000 assurance Standard (aa1000aS) 2008, as well as in accordance with the international Standard on assurance engagements (iSae) 3000. these standards require that we comply with ethical requirements and that we plan and perform the assurance engagement with due regard for the principle of materiality so as to allow us to express our conclu- sion with moderate assurancei, the level of assurance requested by deutsche telekom. we are independent within the meaning of section 3.2 of aa1000aS (2008). as a result of our specialist knowledge and experience of non-financial assurance engagements, sustainability management and social and environmental topics, we have the neces- sary expertise to carry out this assurance engagement. in a moderate assurance engagementi the evidence-gathering procedu- res are more limited than in a high assurance engagement[i], and there- fore less assurance is obtained than in a high assurance engagement. the procedures selected depend on the practitioner‘s judgment. we conducted our work at group headquarters level in bonn and at the level of selected subsidiaries, particularly at t-mobile uSa inc., belle- vue, washington (u.S.), ote a.e, athens, greece, Cosmote mobile tele- communications S.a, athens, greece, magyar telekom plc., budapest, hungary, and Croatian telekom inc. zagreb, Croatia. the procedures we carried out in terms of adherence to the aa1000 accountability principles included: inquiries of the relevant contacts in the Stakeholder engagement & Stakeholder dialog and Corporate responsibility areas; examination of the relevant documentation regarding stakeholder dialog, further communication with stakeholders and participative formats at group headquarters level and at the level of selected international subsidiaries;
About this report independent aSSuranCe report 13 examination of the relevant documentation regarding pinpointing and prioritization of sustainability topics, Cr categories and identi fied stakeholder expectations at group headquarters level and at the level of selected international subsidiaries; inquiries of selected departments with a focus on the employees and suppliers stakeholders and acquisition of sample evidence from selected projects relating to sustainability and stakeholder manage- ment that serves as additional proof that the aa1000 accountability principles are being observed in the organization. in connection with the sustainability information in the Cr report marked with , we have conducted, among others, the following review procedures: inquiries of the management and of employees responsible for reporting Cr information and charged with the creation of the Cr report; examination of the relevant documentation on the implementation and working of the relevant systems and processes for the collection and analysis of the disclosures in the Cr report marked with ; analytical assessment of selected Cr disclosures; inspection of selected sites and performance of site-specific inquiries as well as data and plausibility checks; review of the presentation and investigation as regards the coverage of the reCS certificates for the electricity requirements of the telekom group in germany; obtaining random samples as evidence for the accuracy of the details marked with the symbol ments, contracts, invoices/reports from external service providers, and by analyzing data based on it system reports. , e.g., by inspecting internal docu- key findings and conclusions. findings with regard to the aa1000 accountability principle of inclusivity: Stakeholder management is controlled at group level by the central Cr Communication & Stakeholder management function within the Corporate responsibility department. this department has also been driving the Stakeholder engagement Strategy project. the project aims to design focused relationships between the company and its stakeholders and to systematically implement a stakeholder management system and stakeholder engagement throughout the group. the principles of stakeholder engagement at deutsche telekom ag have been defined in accordance with the aa1000 accountability principles. it was found that deutsche telekom has established processes that facilitate exchange with stakeholders and support the involvement of stakeholders in decision-making processes. at the level of selec ted departments, stakeholders are actively involved in projects. at international level, the involvement of stakeholders is organized at subsidiary level. Central functions at group level regularly exchange information with the international subsidiaries. it was found that stakeholders are regularly involved (e.g., through inquiries, work- shops or dialog formats) at the level of selected subsidiaries. the international roll-out of the Stakeholder engagement Strategy was initiated during the reporting period (workshop of the international Cr manager network in april 2012). findings with regard to the aa1000 accountability principle of materiality: as part of the materiality process, key Cr topics are systematically identified with the input of internal and external stakeholders and shown in the materiality matrices within deutsche telekom ag‘s Cr report. issues relating to deutsche telekom ag‘s three Cr action areas were evaluated as part of the materiality process. the three action areas are key pillars of the Cr strategy with direct relevance to deutsche telekom‘s core business. as part of central stakeholder involvement, the expectations of individual stakeholder groups are determined in a targeted way and evaluated, and can then be taken into account in Cr reporting, further Cr communication, and the strategic alignment of the Cr department. internationalizing the materiality process was deutsche telekom ag‘s first step in harmonizing the identification of key Cr issues in the various international subsidiaries. a manual was created for this which provides guidance to the international subsidiaries. findings with regard to the aa1000 accountability principle of responsiveness: our random sample inquiries and the evidence we have acquired show that the processes for responding to stakeholder queries are running correctly.
About this report independent aSSuranCe report 14 it was found that the principles of the gri were being used, which are suitable for Cr reporting. düsseldorf, may 24, 2013 Communication with stakeholder groups is carried out via various channels, with a good balance of topics. pricewaterhouseCoopers aktiengesellschaft wirtschaftsprüfungsgesellschaft hendrik fink aissata touré wirtschaftsprüfer (german public auditors) [i] „moderate assurance“ as defined by aa1000aS (2008) is the same as „limited assurance“ as defined by iSae 3000 . [ii] „high assurance“ as defined by aa1000aS (2008) is the same as „reasonable assurance“ as defined by iSae 3000 . based on our moderate assurance engagement, nothing has come to our attention that causes us to believe that, in all material respects, the systems and processes established by the Company are unsuitable for fulfilling the aa1000 accountability principles of inclusivity, materiality and responsiveness. furthermore, nothing has come to our attention that causes us to believe that, in all material respects, the disclosures and pages of the Cr report for calendar year 2012 marked with the symbol been prepared in accordance with the criteria of the Sustainability reporting guidelines Vol. 3.1 (pp. 7 to 17) of the gri. have not Additional information‒Recommendations. without qualifying the conclusions of our engagement set out above, we make the following recommendations for the further development of sustainability management and Cr reporting: further development of stakeholder management, in particular: Continuation of the systematic implementation of the central stake- holder management approach at international level and in the area of supply chain management. further harmonization and standardization of the materiality analysis to further increase the level of comparability. expansion of the group-wide management function for sustainability, e.g.: there should be increased standardization and documentation of processes for recording and determining Cr data upstream of centralized data recording. definition of internal control processes for all key indicators in a documented format.
strAtegy & mAnAgement 15 strategy & management. deutsche telekom‘s strategic goal is to become a global leader in con- nected life and work. for us, this means taking on a leading role when it comes to assuming social responsibility as well. we intend to assume a leading role in the industry in terms of corporate responsibility and to lay the foundation for long-term corporate success now with our Cr strategy. in order to illustrate and monitor our progress throughout the entire group, we have been integrating our international subsidiaries in our consolidated Cr kpi data collection process since 2011. we also systematically involve our stakeholder groups in our Cr activities and developed a strategy for stakeholder involvement in 2011. we regularly ask them about their expectations as part of a multiple phase materiality process. in 2012, telekom introduced new, effective stakeholder management tools based on the internationally-recognized aa1000 standard. these tools instruct our employees on how to work with stakeholders at different levels and motivate them to take stakeholder concerns into consideration in their activities in order to benefit our company.
strAtegy & mAnAgement ViSion Vision. 16 our Cr vision is based on the motto „we take responsibility.“ it expres- ses a philosophy that goes beyond short and medium-term goals and calls for the alignment of all our business activities with sustainability principles. the Cr vision provides a long-term, group-wide orientation framework and emphasizes our commitment to promoting sustainable development. based on the Cr strategy, our vision includes all action areas that are at the core of our commitment. our cr-vision: „deutsche telekom is a driving force internationally for sustainable action, it sets the standard for connected life and work, it sets an example in integrating people into the information society, and it is a leader on the way to climate-friendly society.“
strAtegy & mAnAgement ValueS & guiding prinCipleS 17 Values & guiding prinCiples. deutsche telekom is continually working on establishing a value-orien- ted corporate culture throughout the group that is characterized by responsible and sustainable behavior. our guiding principles and our Code of Conduct, which are based on these values, form the foundation of our corporate activities — both in our cooperation with external target groups as well as within the company itself. Campaigns like our guiding principles day help us establish and further develop a value-oriented corporate culture. guiding pRinciples foR the entiRe gRoup. our corporate culture is based on the guiding principles that were intro- duced group-wide in January 2009. these principles represent our values and convictions and guide our actions, which are driven by our sense of responsibility. the guiding principles will be discussed in greater depth in areas with survey results of less than 60 percent. we are planning to conduct discussion panels with managers focusing on our corporate strategy and values, e.g., in the „talking straight“ format, which is well established at t-Systems. the Chairman of the board of management as well as the board members for human resources and finance will address video messages to our employees about the guiding principles. all business topics will be communicated in connection with the guiding principles.as to our first guiding principle, we focus on the aspect of simplicity, which we want to communicate more actively. tekekom‘s five guiding principles: we are planning to celebrate the fifth anniversary of the guiding principles group-wide in late 2013. Customer delight and simplicity drive our action. respect and integrity guide our behavior. team together—team apart best place to perform and grow I am T‒count on me. in 2010, we began establishing the guiding principles throughout the group at all deutsche telekom group subsidiaries in four phases. the guiding principles are now available in 19 languages and apply in 34 countries and at 50 international subsidiaries. our guiding principles are a component of our hr work and are very important when it comes to reliable collaboration and the ability to delight our customers. that is why it is important for us to know how well our guiding principles are established with our employees. we con- duct regular employee surveys to find out how our employees apply our guiding principles every day at work. we also conduct pulse checks to assess employee satisfaction and how well they understand our corpo- rate strategy. we asked employees to answer a special question about the guiding principles during each of the four implementation phases. in 2012, we conducted our fourth pulse check survey after completing the implementation process in the t-Systems market areas as well as in germany and most of the eu countries. we asked employees to res- pond with yes or no to the statement „i feel that the guiding principles are an integral part of the daily work routing.“ in april 2012, 61 percent of the employees surveyed responded positively to the statement. this result had increased to 63 percent by the following october. initial results met our target expectations. however, it was also apparent that there is still room for improvement in how we communicate the guiding principles to our employees. because of this, an entire array of measures have been scheduled for 2013: guiding pRinciples day to pRomote coRpoRate values. in order to make practicing the guiding principles a matter of course, a guiding principles day is held every year at all group units. every employee in the company is called upon to think about the guiding principles and come up with ideas on how to implement them in day- to-day work. deutsche telekom held its third guiding principles day on September 26, 2012. employees were asked to contribute to this day with their own ideas and all our board of management members played an active part. reinhard Clemens, board member for business Customers / t-Systems, discussed the project status and progress to date with the cross-area de-mail team, for example. Claudia nemat, board member for europe and technology, discussed corporate culture in a blog. Chairman of the board of management, rené obermann, also discussed the guiding principles with our employees in a blog. marion Schick, telekom ag board member for human resources, addressed a video message to our employees, talking about her expec- tations for the guiding principles and summarizing the experiences from the past two years since we first introduced the guiding principles. She participated in a discussion on the guiding principles with rené obermann and other employees in the telekom Social network. marion Schick welcomed employees from telekom laboratories and t-Systems at a get-together at the berlin representative office. the purpose of the get-together was to discuss the guiding principles openly and honestly. participants addressed challenges such as handling complex, non-stan- dardized processes with confidence. model solutions were also presen- ted at the event, such as how to structure conferences more effectively. the day began throughout the group with countless activities that showed how the guiding principles can be lived every day at telekom. our employees presented creative ideas for implementing the guiding
strAtegy & mAnAgement ValueS & guiding prinCipleS 18 principles as well as examples of their volunteer activities at many loca- tions in germany and abroad. proceeds from sales campaigns went to support the „yes, i can!“ telekom initiative or were donated to support other social projects. employees from the macedonian, polish and montenegrin subsidiaries participated in different art and photography activities. employees at t-mobile held a „looking-over-your-shoulder“ campaign to increase awareness of how others work. as usual, many trainees also participated in the guiding principles day. in munich, they worked together to design a flyer on the guiding prin- ciples in six languages. trainees in erfurt put on a play based on Snow white called „t-white.“ our young colleagues in magdeburg took time during their vocational training to tell their classmates about the signifi- cance of the guiding principles day. employees in hamburg released balloons into the world with postcards attached to them containing the guiding principles and personal messages to ring out their guiding principles day. guiding principles day is a permanent feature at telekom throughout the group. we will hold our next guiding principles day on September 25, 2013. gRoup-Wide implementation of the code of conduct. our Code of Conduct has served as a reference for clear rules of con- duct for our daily work since 2006. the Code of Conduct applies to all telekom employees worldwide. it connects compliance with laws and regulations with our requirements for ethical behavior and the guiding principles. due to the increased aspiration of society for compliant and legally unimpeachable behavior and the launch of the guiding principles at the beginning of 2009, we revised our Code of Conduct in 2010. in June 2011, we successfully completed the implementation of the revised Code of Conduct in germany. we help our employees comply with the Code of Conduct by offering a multimedia training package for mana- gers and the Code of Conduct interactive online tool. we also continued the implementation process at our international units. all of our fully consolidated group subsidiaries had successfully introduced the Code of Conduct by the end of 2012. we monitored the implementation pro- cess until the end of 2012 via the pulse check.
strAtegy & mAnAgement Cr Strategy 19 Cr strategy. deutsche telekom aims to position itself as a global leader for con- nected life and work. at the same time, we are striving to become an leader in our industry when it comes to assuming social and ecological responsibility. with our group-wide Cr strategy, we have committed ourselves to following a sustainable corporate policy. the Cr strategy is based on our group strategy and also provides a framework for international subsidiaries when it comes to implementing Cr in their areas of respon- sibility. we use Cr key performance indicators (Cr kpis) to regularly measure our Cr performance. this lets us assess how effectively the strategy is being implemented and whether or not we are achieving our goal of becoming a leader in this area. „leading the Way“ pRoject incoRpoRated into systematic gap analyses. in 2010, our central Cr department developed a list of criteria for inte- grating Cr into central business processes within the scope of its „lea- ding the way“ project. the criteria catalog takes the challenges specific to the iCt industry into account and is in line with existing corporate goals and the Cr strategy. it significantly contributes to permanently entrenching Cr in our core business and establishing the sustainability principles throughout the entire group. the „leading the way“ project will be incorporated into systematic gap analyses in 2013. we use these analyses to review our progress in terms of assuming a leading role in the industry. during the analyses, we iden- tify problem areas within the scope of dialog with our stakeholders and our membership in global Compact lead as well as based on an analy- sis of our rating results.
strAtegy & mAnAgement Cr Strategy action areas 20 aCtion areas. technological progress as well as time and location-independent com- munication are fundamentally changing our lives. deutsche telekom is working to facilitate connected life and work, connecting the uncon- nected, and achieving a low carbon society with sustainable products, solutions and initiatives, e.g., initiatives on climate protection. our custo- mers and employees, suppliers, investors, our environment and society are just some of the stakeholders that benefit from telekom‘s involve- ment in these three Cr action areas, all of which are directly connected to our core business. ... foR connected life and WoRk. we are helping shape the change in the increasingly digitalized work and living environment. deutsche telekom supports cultural change with innovative products and solutions toward greater self-determination and quality of life both in our professional and personal lives. our goal is to be a driving force for sustainable life and work. ... foR connecting the unconnected. irrespective of their social or economic opportunities, we try to get as many people as possible involved in the development of the society they live in. with this in mind, we promote numerous community initiatives and support projects for media skills development. ... foR a loW caRbon society. global warming and its consequences are one of the greatest challen- ges facing mankind. we have launched large-scale initiatives to reduce our own emissions for the long term. at the same time we are also empowering our customers and partners to make their contribution to climate protection with our solutions.
strAtegy & mAnAgement Cr Strategy Cr key performance indicators 21 Cr key performanCe indiCators. in order to manage its Cr performance, telekom uses seven key perfor- mance indicators (Cr kpis) that apply throughout the group. these help us to systematically and transparently optimize our services on an ongoing basis. we are currently involved in international discussions with the aim of defining targets for our Cr kpis. in view of our future plans to integrate our Cr and annual reporting pro- cesses, we will be increasing the number of integrated processes used to record our Cr and financial data and increasingly collaborate with the financial department when collecting Cr kpi data. we published the Sustainable procurement Cr kpi for the first time in our 2012 annual report during this integration process. the Cr kpis are divided into two categories: cR kpis With gRoup-Wide taRgets. kpis with targets standardized group-wide, and kpis with specific targets per international subsidiary. we collect consolidated data for the entire group for the following three Cr kpis: cR kpis mandatoRy as of 2012. we use our Sustainable investment (Sri) Cr kpi to measure our progress when it comes to sustainable investment. this kpi indicates the share of deutsche telekom ag stock that is owned by investors who show concern for environmental, social and gover- nance criteria in their investment strategies. the Cr employee Satisfaction Cr kpi reflects our employees‘ satisfaction with telekom‘s Cr commitment. it is based on the employee survey, which we conduct every two years for each individual company. the Sustainable procurement Cr kpi measures the share of procurement volume we obtain from suppliers where one or several companies of the corporate group have been audited for compli- ance with our social and environmental standards. this also inclu- des audits carried out with upstream suppliers. the Cr kpi indica- tes the share of the total procurement volume that was subject to self-assessments, pre-qualification and/or audits. we will not be using the green products Cr kpi, which we announced in 2011, to measure the sustainability of our product portfolio for the time being due to the restructuring activities taking place at group headquarters. when it comes to green products, group headquarters will focus on strategic guidance and providing information on local implementation at the group subsidiaries. Since January 1, 2012 all international subsidiaries have been obliged to determine their Cr kpis. the indicators that were still „voluntary“ in the previous year are now mandatory. the Cr kpis have a role similar to the financial kpis that are used in the annual report. among other things, they lay the foundation for us to be able to integrate our financial and Cr reporting processes in the future. at the same time, they document our will to embed Cr more firmly in deutsche telekom‘s core business. telekom recorded the following Cr kpis in 2012: Socially responsible investment (Sri) Cr kpi Cr employee Satisfaction Cr kpi Sustainable procurement Cr kpi Co energy Consumption Cr kpi Social Commitment Cr kpi used Cell-phone Collection Cr kpi emissions Cr kpi 2 we made the recording process for essential Cr kpi data more syste- matic during the reporting period. we generally only record the Sustai- nable investment and Sustainable procurement indicators centrally; we use the employee survey to collect data for the Cr employee Satisfac- tion kpi. we used our central Cr data collection system to calculate the values of the other four Cr kpis in 2012. we included all of our interna- tional subsidiaries in this process. however, we were not able to record comprehensive data for the used Cell-phone Collection and Social Commitment Cr kpis because not all of our international subsidiaries have begun conducting cell-phone collection campaigns and some of them have a different, country-specific definition of social commitment. however, we were able to considerably expand the data collection for both kpis compared to the previous year. in 2012, we included three new international subsidiaries in data collection for our used Cell-phone Collection Cr kpi and two new international subsidiaries for our Social Commitment Cr kpi.
strAtegy & mAnAgement Cr Strategy Cr key performance indicators 22 cR kpis With countRy-specific taRgets. individual targets at the regional level apply to four of the seven Cr kpis. we take local as-is situations and the specific developments of each international subsidiary into consideration when planning targets. we use the Co 2 emissions Cr kpi to record the reduction in Co 2 emissions compared to 2008. our goal is to reduce our Co emissions by 30 percent compared to the levels recorded in 2008 by 2020. 2 the energy Consumption Cr kpi, which we use to measure our power consumption, is based on the monetary power efficiency indicator (mpei). it shows the amount of electricity consumed compared to net revenue. we use the Social Commitment Cr kpi to measure the success of our social commitment based on how telekom‘s Cr activities are perceived by the public. the used Cell-phone Collection Cr kpi compares the mobile devices that were collected, measured in piece numbers, with the number of customers that group company has. although recording the four Cr kpis mentioned above is mandatory for all international subsidiaries, not all of them were able to provide the information we needed to calculate the used Cell-phone Collection and Social Commitment kpis. Some of our international subsidiaries have not yet set up a cell-phone recycling program or have a country-specific definition of „social commitment.“ however, we were able to record data for these two kpis from a greater number of subsidiaries during the reporting period.
strAtegy & mAnAgement Cr Strategy Socially responsible investment 23 soCially responsible inVestment. as a global player, deutsche telekom focuses on generating sustaina- ble added value. it is our general goal to keep our medium and long- term capital costs at as low as possible. Sustainable investments play an especially important role in this. in 2012, 12 percent of our t-Shares were held by investors who take Sri criteria into account, at least partially in their investment decisions. two percent of t-Shares were held by investors who give priority to Sri aspects when managing their funds. we plan to steadily increase the number of shares held by investors who at least partially take sustainability criteria into account in their investment decisions, which is why we use the Socially responsible investment (Sri) Cr kpi. position in Rankings and Ratings asseRted. Just like in preceding years, the quantity, scope and depth of detail of existing rating requests increased in 2012. deutsche telekom delibera- tely decides to take part in ratings that are relevant to sustainability- oriented stakeholders, especially investors. as in previous years, during the reporting period our t-Shares were listed in the most important indices and rankings for socially respon- sible investment (Sri). these include the dow Jones sustainability indices, world and europe, the ftSe4good index and the Stoxx- globaleSg leaders index. as another bonus, we improved our company‘s results in several ratings. for instance, we were once again commended as a prime Company by rating agency oekom in the reporting year, and climbed within the Swiss Sam agency rating by another three points to 82 points (of a maximum of 100). the following table provides an overview of t-Share listings in the leading sustain- ability indexes.
strAtegy & mAnAgement Cr Strategy internationalization 24 internationalization. our desire to be at the top of our industry as a responsible company calls for all units at the group to work together and coordinate their activities. to help this process, we have created a strong control sys- tem at our various subsidiaries that we use to realize our key Cr tar- gets worldwide. three strategic Cr action areas from our Cr strat- egy provide us with orientation. the majority of the some 20 interna- tional subsidiaries currently represented in the Cr manager network have incorporated these action areas into their local strat- egy in the meantime. inteRnational coopeRation in the cR manageR netWoRk. the Cr managers from the different business areas and internatio- nal subsidiaries are responsible for operational implementation of the Cr strategy. the international Cr manager network was estab- lished in 2008 to intensify group-wide collaboration. around 20 international subsidiaries were members of the network in 2012. at regular meetings and teleconferences, Cr managers discuss current topics and best practice examples. the international subsidiaries also work together in working groups focusing on specific topics. in 2012, the network focused primarily on developing a strategic approach to reducing waste and increasing resource efficiency at the group. the network also focused on the international roll-out of the engagement@telekom program at our international subsidiaries and continued to work on integrating our Cr and annual reports. cr manager meetings. telekom held two Cr manager network meetings during the reporting period: the ninth Cr manager meeting took place in bonn on april 23rd and 24th. in addition to the focal points mentioned above, the mana- gers learned more about the work being done by the international Climate Change working group and the product Carbon footprint project. participants also discussed telekom‘s stakeholder involve- ment strategy at several workshops. the results of the workshops were used to draw up a „guide to successful stakeholder engage- ment.“ t-Systems austria hosted the tenth Cr manager meeting in Vienna on november 19th and 20th. in addition to the priority topics to be discussed by the network, there were also two guest speakers on the agenda. a representative of the european Commission presen- ted the new eu CSr directive. the second guest speaker gave a talk on corporate strategies and sustainability. they compared leading companies in terms of motivators, strategic intent, communication approach and innovative thinking to better illustrate the business benefit of sustainability. 2012 earth hour. on march 31, 2012, several international subsidiaries conducted numerous activities, participating in a symbolic act to raise aware- ness of the needs of our planet, 2012 earth hour. telekom was a part of it on five continents when the lights were turned off for 60 minutes at numerous buildings and popular sights in the name of climate protection. telekom‘s activities included having the lights turned off at the fernsehturm berlin and holding cultural events such as the unplugged concert organized by magyar telekom on the budapest Chain bridge. based on time zone, t-Systems malay- sia was the first to turn off their lights at 8:30 p.m. myt. t-mobile uS was the last 16 hours later at 8:30 p.m. pSt in California. cR is becoming incReasingly impoRtant at many of ouR inteRnational subsidiaRies. new cr managers appointed in usA, czech republic and poland. the practical implementation of deutsche telekom‘s Cr strategy is undertaken throughout the group by suitably qualified Cr personnel. to this end, several subsidiaries appointed new Cr managers in the course of 2012. t-mobile uSa, inc. appointed a new program manager for Cr & Supplier diversity and a Senior program manager for diversity and inclusion t-Systems Slovakia brought in a new Cr manager to work in the Corporate Communications department and manage all Cr activities. the polish subsidiary ptC created new positions in their Corporate Communications bureau and appointed a Corporate responsibility Chief Specialist and a Corporate responsibility Senior Specialist. new cr boards set up in Austria, czech republic, poland and romania. the growing importance of Cr within the deutsche telekom group was underlined by the establishment of Cr boards in several countries. at t-Systems Czech republic a dedicated Cr board was set up within the marketing department. t-mobile austria has also set up a Cr board. it is comprised of representatives from all company areas.
strAtegy & mAnAgement Cr Strategy internationalization 25 polish subsidiary ptC established a Cr board composed of the fiRst iso 26000 cR audit in poland. heads or managers of the departments most involved in Cr – Corporate Communications, hr, marketing & Sales, it & network, facility management, procurement, finance, legal & Compliance, and Strategy & regulatory – and an employees‘ representative. the significance of the internal Communications & Cr office of Cosmote romania has been enhanced since april 2012 in that the Corporate affairs department, which includes the Cr office, now reports directly to the Ceo of Cosmote romania. t-systems iberia: reorganization of cr committee and cr masterplan. the Cr master plan and the Cr Committee were reorganized at the start of 2013. during the new Committee‘s first year in office, it is mee- ting every two months to oversee a number of important changes in the implementation of Cr at t-Systems iberia. neW cR oRganizational stRuctuRe at ote and cosmote. in greece, ote and Cosmote have introduced a new organizational structure to reflect their common Cr approach. in practice, this involves the ote group Corporate Communications department, which includes the Corporate responsibility Sub-department as well as the Corporate responsibility Section and the environmental management Section for fixed and mobile telephony. the new organizational structure was also strengthened through the establishment of a joint ote-Cosmote Cr team with 50 members acting as ambassadors across all the compa- nies‘ operations for which a management-action plan was drawn up based on the specific strategy of „education-participation-amusement“. in another important move a new ote-Cosmote environmental Commit- tee was set up and work began on developing a common environmental strategic framework for ote and Cosmote. the ote-Cosmote Cr strat- egy is tied in to the companies‘ core business strategy with the three major business objectives linked to specific Cr projects or initiatives. last but not least, Cr kpis have been embedded into the personnel evaluation and personal operational targets for specific colleagues from the interdepartmental ote-Cosmote Cr team. this particularly applies to colleagues involved in the environmental management system. at romtelecom, the romanian subsidiary of the ote group, a signifi- cant start has been made in aligning Cr activities with the ote group‘s Cr Strategy. although romtelecom, does not have a cross-departmen- tal structure to formally coordinate Cr activities, which mainly involve sponsorships, they are managed centrally by the company‘s Corporate Communications department and in individual cases by those respon- sible for the activity in question, e.g. hr when employees are involved. during the reporting period deutsche telekom‘s subsidiary ptC became the first polish company and also the first t-mobile company to be audited on the basis of iSo 26000. this involved the company‘s internal practices being checked and evaluated by an independent auditor. internally and externally, 33 stakeholders and 54 employees were interviewed in the course of this iSo 26000-based Cr audit pro- cess. as a result, it has been possible to draw up a stakeholders‘ map, determine the expectations of employees and stakeholders, and com- municate in no uncertain terms to the general public that Cr is an important issue for ptC. cR pRogRam at t-systems slovakia. in the reporting period t-Systems Slovakia put the deutsche telekom group‘s Cr strategy into practice in a variety of ways. the company runs several long-term cooperation projects with educational institutions to further develop the education of high-potential iCt talents and bring iCt education closer to the market needs. the products implemented in 2012 included an iCt program for elementary schools and an intensifi- cation of cooperation with secondary schools. in the volunteering field t-Systems Slovakia endeavored to increase its employees‘ involvement in their local community by organizing three volunteering activities in 2012: participation in three initiatives: the earth day (april) and our City košice (June) Support for disadvantaged people through cooperation with ngos and assistance for animals in need, again in cooperation with ngos. 2 another key Cr goal is to create a healthy work-life balance for emplo- yees and reduce the company‘s Co emissions. to this end, t-Systems Slovakia encouraged flexible working hours and mobile working habits, promoted phone, data and video conferencing, parking slots for bikes, replaced old it equipment with more energy-efficient new devices, improved its waste management system, reduced the number of plastic glasses used, and enhanced printing efficiency through networking and pin-code printing. t-mobile czech Republic cR event. during the reporting period t-mobile Czech was involved in a number of Cr conferences. in april 2012 the company partnered a conference entitled „Creating Shared Value as Corporate Strategy“, which was held at bayer. the participants – representatives from big companies that are leaders in their field – discussed current social issues in the Czech republic and various Cr-related topics. in January 2013 the company participated in a conference on corporate social responsibility entitled „business‘s answers to Social issues“. held under the auspices of the
strAtegy & mAnAgement Cr Strategy internationalization 26 Fifth sustainability Day in hungary. the 5th Sustainability day organized in September 2012 by magyar telekom was attended by 1,200 people. its aim was to present new and unorthodox ideas and solutions relating to sustainable development that had evolved over the past year. the panel discussions focused active citizens in a societal context, sustainable settlements in environ- ment terms, the green economy and green festivals. one of the special features of the event was that a slammer improvised some rhymes about the above topics. besides panel discussions, there were many exciting programs, exhibitions, break-up sessions and concerts for those atten- ding – young and old. the most eye-catching symbol of the event was a monumental 1.5-ton green wall, five meters square, which was decora- ted by the visitors on the spot. the day finished with an after-event party, the proceeds of which were spent on planting trees. bulgaRia and cRoatia: cR RepoRting pioneeRs. most of deutsche telekom‘s subsidiaries publish their own sustainabi- lity reports. in many cases these companies are playing a pioneering role in sustainability reporting in their respective country. croatia: decisive step forward in cr reporting. for the very first time, hrvatski telekom (t-ht), deutsche telekom‘s Croatian subsidiary, had its Sustainability report 2011 approved by the global reporting initiative (gri). the report was prepared by applying the gri guidelines and audited by pricewaterhouseCoopers. gri sub- sequently confirmed the b+ reporting level. globul: the only bulgarian company to publish a cr report. under the globul brand, the bulgarian mobile communications provider, Cosmo bulgaria mobile ead (a wholly owned subsidiary of Cosmote), is the only company in bulgaria to publish an annual Cr report that has been approved by the global reporting initiative (gri). uS embassy in the Czech republic, the conference was staged for the fourth year in succession. the attendees, all top managers, discussed business opportunities arising from social and environmental issues and the resultant benefits for Czech society. the conference brought together more than a hundred representatives of business and non-pro- fit organizations. globul paRticipates in cR foRums. globul, the ote group‘s bulgarian subsidiary, participated in a number of Cr forums during the reporting period: green economy forum in april 2012 balkan green economy forum in June 2012 green business forum in July 2012 business with a Cause in december 2012. t-mobile austRia pRovides infoRmation. t-mobile austria participated in the european alpbach forum in 2012, making contributions on economic issues and presenting projects sponsored by the t-mobile environment and sustainability fund tu. the european alpbach forum holds a convention each year at the tyrolean mountain village of alpbach with 2,000 to 3,000 international guests from the worlds of business, science and politics. from august 16 to September 1, 2012, participants discussed current issues and interdis- ciplinary approaches under the slogan, „future and youth.“ hRvatski telekom stakeholdeR dialog. for the fifth year in succession, hrvatski telekom staged its stakeholder dialog conference in october 2012 entitled „growing through know- ledge“, this conference invites the world‘s leading experts, visionaries and thinkers to share their knowledge and progressive ideas. at the 2012 conference dr. michio kaku, a prominent physicist and futurolo- gist, discussed how science would change our daily lives in future deca- des, while Sarah lacy, a globally renowned author on innovation and entrepreneurship, talked about inspirational entrepreneurs all over the world and visionaries who prioritize innovativeness. the impact of the conference was heightened through the use of blogs and twitter. magyaR telekom dialog. Since 1997, magyar telekom has been organizing an annual Sustaina- bility roundtable discussion for domestic governmental and non- governmental organisations, scientific institutes, group member compa- nies, etc. the Sustainability roundtable discussion organized in June 2012 aimed to conduct an open dialogue with magyar telekom stake- holders to promote an understanding of the demands made on the magyar telekom group, discuss the problems arising, and provide a sui- table background for thinking together and co-operating in building a sustainable future.
strAtegy & mAnAgement Cr goVernanCe 27 Cr goVernanCe. telekom has created an integrated governance structure for Cr in order to closely link strategic management and operational implementation throughout the group. the deutsche telekom board of management carries general responsibility for Cr. the group has developed this structure to make sure that all subsidiaries integrate sustainability into their business activities, emphasizing its commitment to society. cr-governance. deutsche telekom began establishing a new unit known as transforma- tional Change & Corporate responsibility, which will report to the Chro, in January 2013. its job within the new management structure is to further develop our existing corporate culture, placing a special focus on innovation, individual autonomy, entrepreneurship and social responsibility. the Cr area was integrated into this unit in January 2013. telekom plans to use its new group transformational Change & Corpo- rate responsibility unit to face the challenges of a rapidly changing society. it‘s aim is to take advantage of the opportunities that come with this transformation, e.g., in terms of demography, and to get telekom ready for future challenges such as sustainable innovation. to this end, telekom continues to expand its role as a driving force for change and renewal. the company is relying on the courage to change, on new forms of connected collaboration and on business initiatives and has committed itself to being accountable to its stakeholders. the hr leadership team (hr lt) was added to the corporate gover-
strAtegy & mAnAgement Cr goVernanCe 28 nance structure at the start of 2013. the leadership team is a consul- ting and decision-making committee for the human resources board of management area that, due to our current business structure, addresses topics including relevant aspects of corporate responsibility. the com- mittee is responsible for engaging in dialog with the group board of management and determines whether or not a board of management resolution needs to be made regarding selected topics. this does not replace the group board of management‘s responsibilities but comple- ments them. the hr lt makes decisions regarding group-wide poli- cies, guidelines and significant Cr activity-related matters as well as the department‘s strategic direction. the committee is comprised of mana- gers from the level directly below the Chief human resources officer and meets every two months. the meetings are chaired by the Chief human resources officer (Chro). cR boaRd: gRoup-Wide management of the cR stRategy. the members of the Cr board met twice in 2012 to discuss the latest developments at the group, in society at large and in the markets in which telekom is active. the Cr board addressed a number of topics at the meetings. in april, members discussed topics such as telekom‘s cli- mate protection strategy, sustainable procurement, the engagement@ telekom program and questions concerning hSe management. december‘s agenda focused on online protection of minors and Cr challenges in the supply chain. the cR depaRtment as a centRal unit. the Cr department is responsible for strategic Cr management and Cr communication. during the reporting period, the Cr department coordinated and managed implementation of the Cr strategy in all busi- ness areas and at the international subsidiaries. at group level, the Cr department has an integrating role in collaboration with all relevant departments. the department plans and implements projects and pro- cesses dealing with climate and environment, supply chain manage- ment, social commitment and stakeholder involvement. in 2012, telekom began reorganizing the group‘s administration to make it more flexible and efficient. we are planning to cut back our pre- vious, heterogeneous structure, parts of which have grown organically over time, and organize it into three, clearly separate functional areas: group headquarters as a creative motivator, group service as a service provider and finance and hr management. many responsibilities will be handed over to the local german and international service units or to newly-created cross-country units in other european countries. one of the departments affected by this new structure is the Cr depart- ment. in the future, the department will be able to focus more on its core competences in strategically steering Cr, and the group and will prima- rily address the revision, communication and implementation of policies and guidelines. development of gRoup-Wide cR contRolling. we continued the Cr kpi target determination process during the reporting period. in doing so, we laid the foundation for central Cr cont- rolling processes. these processes are based on the Cr data collection system, which we have been using since 2009, and serve as a tool in reporting activities and in managing Cr activities throughout the group. with the help of our central Cr data collection system, we plan to gua- rantee a transparent Cr reporting process throughout the entire group. the system supports standardized, mandatory processes at the group and subsidiary levels. all Cr data and Cr kpis are validated in a multi- ple-phase process and consolidated centrally. this gives us a better understanding of the quantitative developments of strategic and opera- tional Cr topics and makes it easier to monitor deviations from set tar- gets. the software also enables group-internal benchmarks. we hold regular feedback sessions in the Cr manager network to help us conti- nue to improve our Cr data collection system. at the Cr manager mee- ting in Vienna in november 2012, members discussed goals and indica- tor targets. we also regularly inform the telekom management of any new developments in our data collection process. 2 in q2 2012, we started collecting data for the energy Consumption and Co emissions Cr kpis each quarter in order to provide us with a better overview of the development of important indicators. this will help us control processes more reliably and more effectively steer our energy management and our climate protection measures. in view of our future plans to integrate our Cr and annual reporting processes, we will also be increasing the number of integrated processes used to record our Cr and financial data and increasingly collaborate with the financial department in our Cr controlling activities. inteRnational cR manageR netWoRk. we continued the Cr kpi target determination process during the reporting period. in doing so, we laid the foundation for central Cr cont- rolling processes. these processes are based on the Cr data collection system, which we have been using since 2009, and serve as a tool in reporting activities and in managing Cr activities throughout the group. with the help of our central Cr data collection system, we plan to gua- rantee a transparent Cr reporting process throughout the entire group. the system supports standardized, mandatory processes at the group and subsidiary levels. all Cr data and Cr kpis are validated in a multi- ple-phase process and consolidated centrally. this gives us a better understanding of the quantitative developments of strategic and opera- tional Cr topics and makes it easier to monitor deviations from set tar- gets. the software also enables group-internal benchmarks. we hold regular feedback sessions in the Cr manager network to help us conti- nue to improve our Cr data collection system. at the Cr manager mee- ting in Vienna in november 2012, members discussed goals and indica-
strAtegy & mAnAgement Cr goVernanCe 29 tor targets. we also regularly inform the telekom management of any new developments in our data collection process. the group is also planning to address influential factors that could play a role in our ability to achieve our climate protection goals. these include: 2 in q2 2012, we started collecting data for the energy Consumption and Co emissions Cr kpis each quarter in order to provide us with a better overview of the development of important indicators. this will help us control processes more reliably and more effectively steer our energy management and our climate protection measures. in view of our future plans to integrate our Cr and annual reporting processes, we will also be increasing the number of integrated processes used to record our Cr and financial data and increasingly collaborate with the financial department in our Cr controlling activities. climate change gRoup. new business areas with green products and solutions that have the potential to reduce our customers‘ Co 2 a sustainable value-added chain structure technological and energy policy developments in our market emissions segments telekom founded the Climate Change group in order to contribute to an environmentally friendly society. the group is comprised of internal energy and climate experts and consults with external specialists as the occasion demands. the purpose of the Climate Change group is to work to effectively minimize energy consumption and Co telekom. to do this, the group acts as an ambassador throughout the group, raising awareness of ambitious climate protection goals and measures. it is also responsible for developing a group-wide climate protection target and presenting it to the board of management for approval. the Climate Change group also develops tools for centrally managing, monitoring and communicating climate protection projects and provides the framework for planning and conducting climate pro- tection measures. the group is headed by the board representative for Climate protection and Sustainability. emissions at 2 the Climate Change group holds regular meetings where it addresses the implementation of the group‘s climate protection goals in germany and incorporating the global group subsidiaries into the Climate Change group internationalization project. the goal of the project is to implement the climate protection strategy at our international subsidia- ries. although we have not yet fully completed this process at our euro- pean subsidiaries, we began introducing the project on other continents in 2012. nine t-Systems offices including the ones in brazil, north ame- rica, mexico, South africa and China participated. the first step was to collect reference values from 2008 for all areas, just like we did in europe. the next step will be to identify specific measures and create a prognosis for target values in 2020. by participating in the project, our international subsidiaries are laying the foundation to be able to share experiences, permanently improve their energy efficiency and create a group-wide climate protection target, one of the key focal points on the Climate Change group‘s agenda for 2013.
strAtegy & mAnAgement Cr program 30 Cr program. in its Cr program, telekom specifies mandatory targets to be implemen- ted throughout the group in the relevant processes of its core business. in this program we define specific measures and a timeline for imple- mentation. we also provide information on the implementation status in the Cr program. detailed information on the Cr key performance indicators, which we use to quantify our performance in each area, is provided in the Cr report. highlights in the RepoRting peRiod: ranked at the top among the dax companies with around 9,300 trainee position offers introduction of the we Care corporate responsibility app Successful pilot of our internal product carbon footprint calculation policy tested on our top product, entertain active participation in the pioneering Smarter2020 study, which identifies key areas in the iCt industry where Co be reduced 2 emissions can
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strAtegy & mAnAgement Stakeholder inVolVement 37 stakeholder inVolVement. by using targeted measures to get our stakeholders involved, we can build long-term, trust-based relationships and increase understanding for our concerns and activities. last but not least, dialog with our stake- holders is also a source of inspiration for innovation processes and a basis for new cooperations or strategic partnerships. this is especially important with regard to our sustainability goals, which we will only be able to achieve together with partners from politics, society, science and industry. implementation of stakeholdeR involvement stRategy. to be successful, it is vital that we intensify stakeholder involvement. the only way to tackle many of the challenges we face is to work together, e.g., managing a sustainable supply chain. we therefore set great store by lasting and trusting relationships with our stakeholders. with this in mind, we developed a new strategy in 2011. our aim is to take the issues put forward by our stakeholders seriously and to ensure that top quality standards are applied in our stakeholder involvement approach. in this, we are guided first and foremost by the three aa1000 principles developed by the non-governmental accountability organiza- tion: materiality, inclusivity and responsiveness. our activities in 2012 included drawing up a guideline for our staff. this „guide to successful stakeholder engagement“ contains valuable practical advice, recom- mendations and tools. after conducting an audit, the pricewaterhouse- Coopers auditing firm confirmed during the reporting period that there is moderate assurance that our systems and processes are suitable for the involvement of interest groups in compliance with aa1000 . network meeting to share best practices in 2012. an important pillar in our stakeholder involvement strategy is our semi- annual, internal network meetings. these meetings give all interested employees from different departments a platform where they can share experiences dealing with stakeholders and discuss best practice examples as well as plan and conduct joint activities. the views and expectations voiced by our internal and external stake- holders had a considerable influence on the design of the strategy. as a result, the strategy adopted by deutsche telekom in december 2011 is based on the following three pillars: 2. internal skills development and service: we are developing an infrastructure that will help our employees implement the strategy in practice. internal network meetings help to exchange experiences in dealing with stakeholders, to discuss practical examples and to plan and implement joint activities. we offer a guide to provide our emplo- yees with orientation when implementing stakeholder formats. 3. Development of a stakeholder management system: we are creating transparency in all corporate processes relevant to stakeholder relationships. in this vein, we are documenting our stakeholder activities and monitoring the development of relevant stakeholder topics. in addi- tion, we have been testing our materiality process designed to handle our stakeholders‘ feedback since 2011 and will gradually integrate it into the evaluation process. pRinciples foR WoRking With stakeholdeRs. deutsche telekom came up with six principles for working with stake- holders and communicated them internally in 2012 to help our emplo- yees better implement our stakeholder involvement strategy. the first principle with top priority requires our employees to pay respect to the interests of our stakeholders and take these into consideration when making company business decisions. employees are also required to actively include interest groups using participative formats, to focus on key stakeholder topics and to take a balanced approach to dealing with different stakeholder interests. moreover, stakeholders are to be provi- ded with extensive information on all relevant activities. the principles were developed during a participative process involving internal and external stakeholders. after conducting an audit, the price- waterhouseCoopers auditing firm confirmed during the reporting period that there is moderate assurance that our policies are suitable for the involvement of interest groups in compliance with aa1000 . in addition to publishing our principles for working with stakeholders, we drafted a concise statement when developing our strategy. this statement was designed to help our employees implement the princip- les: 1. our strategic profile: the strategic profile designates relevant stake- holder groups and defines how the group wants to fashion its relation- ship to these stakeholders. in addition to providing information and engaging in dialog, we are increasingly focused on participatory for- mats which customers, employees, ngos and other stakeholders can use to get involved and make contributions. to this end, we are offering options to participate in discussing topics and finding solutions in the different action areas of our Cr strategy. valuing our stakeholders: we listen to our stakeholders and provide them with transparent information about our activities. getting our stakeholders involved: we address relevant topics and engage in dialog and collaborations with our stakeholders. understanding our stakeholders: we take the concerns of stake- holders seriously and take appropriate steps in response to them.
strAtegy & mAnAgement Stakeholder inVolVement 38 aa1000 as a guidance. we consulted the aa1000 standard when developing our stakeholder involvement strategy. this is an internationally recognized body of rules and regulations for auditing sustainability management and Cr reporting. at the end of 2011, accounting firm pricewaterhouseCoopers (pwC) issued a moderate assurance report, which confirms that deut- sche telekom heeds the aa1000 accountability principles in its Cr pro- cesses and systems („type 1 audit“). the assurance engagement also took into account the stakeholder involvement strategy. the 2011 Cr report, which was published in 2012, was also the subject of a mode- rate assurance engagement by pwC based on the aa1000 principles. this means that we achieved our target of having a type 2 audit conduc- ted in 2012. guide foR successful stakeholdeR involvement. we developed a guide for successful stakeholder involvement in 2012 to provide our employees with orientation on how to best work with our stakeholders. the guide provides answers to numerous questions on how to implement our principles in every-day-work and shows our employees how they can use these to benefit our company and to achieve their own project goals. the guide is structured into five steps ranging from setting a goal to selecting a suitable participative format, providing readers with instruc- tions on how to get the relevant stakeholders involved successfully. the guide contains tips on how to determine the appropriate extent of stake- holder involvement and how to select the relevant stakeholder groups. employees can use the guide as a reference when developing their pro- ject agenda. it also introduces several formats for getting stakeholders involved in detail including crowd sourcing and establishing a strategic partnership. in addition, the guide provides numerous tips for working with stakeholders and lists contacts that our employees can turn to for support in their stakeholder involvement activities. recognition for stakeholder involvement. telekom received a very high ranking in the stakeholder involvement category in key Cr rankings in 2012. the Swiss agency Sam even gave telekom the highest score. we consider this a confirmation that our efforts are paying off and will keep following the charted course.
strAtegy & mAnAgement Stakeholder inVolVement Stakeholder expectations 39 stakeholder expeCtations. precise knowledge of our stakeholders‘ interests and views is a basic prerequisite for an informed design of stakeholder relationships. this concerns the topics that our stakeholders consider important on the one hand, and their expectations of successful communication with us on the other hand. cR commitment Recognized by expeRts and the geneRal public. to be able to effectively structure our Cr activities, it is important to determine how these are perceived and assessed by our stakeholders. we conduct regular reviews to help us do this. in 2012, we conducted a study in the summer and one in the fall within the scope of our Cr market research activities. we used computer- aided phone interviews to ask 1,000 randomly selected, german-spea- king individuals about responsible behavior and social involvement in general as well as at telekom. we conducted an additional 301 inter- views with Cr experts in the summer as well. in general, the results showed that the general public places less impor- tance on social commitment than they did the year before. results decreased from 58 to 50 percent. both rounds of the survey, however, confirmed that both the general public and Cr experts consider tele- kom to be the leader when it comes to Cr. the results of the Cr leader- ship indicator on responsible behavior increased significantly compared to 2011 and continued the positive trend between the summer and fall of 2012. the results exceeded our targets for 2012. our analysis of the trend showed that the environmentally-friendly disposal of cell phones, the provision of training measures, the expansion of our high-speed net- works as well as data privacy and security are important topics for telekom‘s reputation. the results provided us with valuable information on how to structure the content of our Cr activities and further develop our Cr communica- tion and Cr kpis. the topics of ouR stakeholdeRs. we used a graded materiality process to identify the focal topics of our stakeholders at the start of 2013. participants were initially asked to rate a series of topics for each of our three Cr action areas based on their importance for the specified goals. we provided them with six possible responses ranging from „extremely important“ to „not important“ or „no response.“ we expanded our list of topics in 2013 to include the demo- graphic shift. we did not make any changes to our action areas or goals from 2012. this made it easier to compare the results with those from the previous year. we also asked the participants to rate telekom‘s com- munication activities. we gave them five of telekom‘s central statements on sustainability. we asked them to select those that they associated with telekom. they were then asked to evaluate what meaning that mes- sage had in terms of telekom‘s social commitment. participants were also asked to rate stakeholder satisfaction with information provided by deutsche telekom and the sources used by the company to provide that information. top topics. most employees and external stakeholders identified the same five most important topics. there were only small differences as to the classifica- tion of the topics: in the „Connected life and work „ action area, employee results were the same as in 2012. they gave first place to „work-life balance“ and second and third place went to „data privacy and data security“ and „network and infrastructure expansion.“ our external stakeholder groups gave a similar rating. however, they put „data privacy and data security“ in first place. Second and third place went to „work-life balance“ and „network and infrastructure expansion.“ Just like the previ- ous year, employees rated the topics „educational commitment for children and young people“, „network and infrastructure development in rural regions“ and „responsible employer“ in first, second and third place in the „Connect the unconnected“ action area. external stakehol- ders gave „educational commitment for children and young people,“ „network and infrastructure development in rural regions,“ and „protec-
strAtegy & mAnAgement Stakeholder inVolVement Stakeholder expectations 40 tion of children and young people“ the top three ratings. however, unlike our employees, our external stakeholders rated „protection of children and young people“ as being more important than the „respon- sible employer“ topic.our employees also gave the topics in the „Cli- mate-friendly society“ action area the same rating as in the previous year. „use of renewable energy“ came in first, „environmentally and cli- mate-friendly network infrastructure“ in second and „recycling and dis- posal“ in third place. our external stakeholders also gave first place to „environmentally and climate-friendly network infrastructure“ just like they did in 2012, followed by „use of renewable energy“ and „recycling and disposal,“ which moved up to third place from its fourth place ran- king in the previous year. evaluating our communication activities. as to telekom‘s communication activities the same weightings were identified internally as well as externally. both stakeholder groups most strongly identified telekom with the statements „deutsche telekom pro- ducts support mobile work anytime and anywhere“ and „deutsche tele- kom provides people with modern and secure communication technolo- gies.“ the two groups gave third place to the statement, „deutsche tele- kom is steadily reducing its Co emissions.“ both stakeholder groups rated „mobile work anytime and anywhere“ and „Secure communica- tion technologies“ as the most important focal points for telekom‘s Cr commitment. 2 sources of information. according to the stakeholders surveyed, the three most important sour- ces of information are our intranet and online websites, the Cr report and contact to employees at the group. more than a fourth of our exter- nal stakeholders also emphasized the importance of telekom‘s stake- holder dialog activities. the following matrices illustrate the results for the different topics: next steps. the results of the survey will be used to identify focal points for the reporting process and to structure telekom‘s stakeholder involvement strategy around the expectations of our stakeholders. because the sur- vey showed that there was little change in the most important topics for telekom compared to last year, we consider a process revision for the year to come. in general, the results showed that 51.5 percent of our employees and 42.3 percent of our external stakeholders feel that we meet all or most of their communication expectations. we feel that this confirms the effectiveness of our efforts but also see this feedback as motivation to be even better in the future. stAkeholDer expectAtions regArDing DiAlog with us. within the scope of developing our strategy, we asked our target groups about their expectations regarding our dialog activities to help us better structure our stakeholder relationships for all parties involved. the results clearly showed that we need to methodically include our stake- holders in our efforts to achieve the „quality leadership“ to which we aspire. the majority of our stakeholders expect mandatory rules practical opportunities to help co-design our activities goals that are clearly defined at the start of each dialog process information on how the results are being implemented the evaluation also showed that our involvement principles largely fulfill our stakeholders‘ expectations. we particularly feel that our stakehol- ders agree with our conviction that stakeholder involvement requires dialog on an equal footing.
strAtegy & mAnAgement Stakeholder inVolVement Stakeholder expectations 41 systematic topic monitoRing. within the scope of our Cr management activities, we carefully track the development of the topics that our interest groups rate highly. we continued to expand our Cr topic monitoring activities in 2012 within the scope of our stakeholder involvement strategy and developed new survey tools to help us systematically identify stakeholder positions. we constantly screen the activities, research projects, publications and statements made by relevant ngos as part of our Cr topic monitoring activities. we summarize the results every two months in our internal newsletter, the ngo radar. this new tool enables compliance with a key requirement in the aa1000 standard. the employee surveys, which are conducted every two years, form ano- ther pillar of our Cr topic monitoring activities. in 2012, as in previous years, we included Cr-related aspects in the survey as well.
strAtegy & mAnAgement Stakeholder inVolVement formats of involvement 42 formats of inVolVement. the type and extent of our stakeholder involvement is based on the results of a case-related relevance analysis. the more relevant a stake- holder group is to the topic or project concerned, the more intense the stakeholder involvement will be. depending on the intensity, we make a distinction between three types of involvement: information, dialog and participation.
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strAtegy & mAnAgement Stakeholder inVolVement formats of involvement 53 Raising employee aWaReness. after focusing our dialog approach on the topic of green iCt in 2011, we decided to focus on our employees in our dialog activities in 2012. because the only way to make sure that we really take responsibility throughout the group is to get our employees excited about the Cr pro- gram and encourage them to practice Cr every day. we conducted the following measures to encourage this development: forum nachhaltige entwicklung der deutschen wirtschaft e. V. (econsense, forum for Sustainable development of german business) gSm association (gSma) bundesverband der deutschen industrie (bdi) e. V. international Chamber of Commerce (iCC) (federation of german industry) „sustainability for breakfast.“ in order to inspire our staff for the idea of sustainability and to show them how, by taking small steps, they can make their own contribution toward sustainability, we launched a „Sus- tainability for breakfast“ action campaign in 2012. a Cr team has regu- larly distributed breakfast boxes to staff at our sites in germany since late october 2012. these boxes contain not only a tasty breakfast but also „easily digestible“ information about our main sustainability the- mes—from the engagement@telekom platform to environmental protec- tion at the workplace, climate protection and finally the „yes, i can!“ initi- ative. we reached more than 7,000 employees in six cities with our cam- paign in the fall of 2012 alone. climate protection and environmental organizations b.a.u.m e. V. (german environmental management association) global e-Sustainability initiative (geSi) 2°—german Ceos for Climate protection initiative. european round table of industrialists (ert) european School of management and technology (Sustainability roundtable) global Compact global Compact lead Caring for Climate Joint audit Cooperation (JaC) cr group in internal social network. in 2012, we set up a Cr group in our telekom Social network (tSn) whose task is to position the topic of Cr more effectively in the company‘s internal communication activities. on Volunteer day, we used the network to inform our employees about the company‘s activi- ties and to get more employees involved. selected collaborations with humanitarian and social aid organizations bundesnetzwerk bürgerschaftliches engagement (bbe, german national network for Civil Society) (membership and demography working group) CCCd – wie (Corporate Volunteering working group, evaluation guide for successful stakeholder involvement. in 2012, we published material containing practical tips, recommendations and tools to help encourage our employees to get stakeholders involved in their areas. in addition to our reporting activities, this decision was another step in implementing the aa1000 requirements regarding stakeholder involve- ment. bRoad-based involvement: membeRships and collaboRations. business and industry associations american Chamber of Commerce germany bundesvereinigung der deutschen arbeitgeberverbände (bda, Confederation of german employers‘ associations) bitkom industry association deutscher industrie- und handelskammertag (dihk, association of german Chambers of industry and Commerce) european telecommunications network operators association (etno) working group) aktion deutschland hilft e.V. (alliance of german aid organizations) drk (german red Cross) dkmS deutsche knochenmarkspenderdatei gemeinnützige gesellschaft mbh (german bone marrow donor Center) bundesverband deutsche tafel e.V. (german food bank federation) lebenshilfe e.V. aid organization SoS-kinderdorf e.V. (SoS Children‘s Villages) nummer gegen kummer youth counseling line telefonseelsorge (Crisis counseling helpline) deutsche telekom foundation bundesarbeitsgemeinschaft der Seniorenorganisationen (bagSo, german association of organizations for seniors) deutschland Stiftung integration (german foundation for „yes, i can!“ initiative integration) ein herz für kinder children‘s charity teachtoday Code of responsible Conduct for business
strAtegy & mAnAgement ComplianCe 54 ComplianCe. telekom‘s business is based on the principles of integrity and respect. Compliance, which is understood as the lawfulness of corporate activi- ties, therefore plays a significant role in the group‘s business activities. telekom is clearly committed to the ethical principles set out in the gui- ding principles and in the Code of Conduct. all compliance management activities are in line with legal regulations and with telekom‘s privacy Code of Conduct, a policy on handling per- sonal data at the deutsche telekom group. compliance management ceRtified. the key elements of the compliance management system are as follows: establishment of a compliance organization in all major group units risk-based derivation of a compliance program and its consistent implementation through policies, training and consulting offers, and communication measures Conducting compliance controls and compliance due diligence appropriate response to breaches of compliance the group‘s compliance organization was certified by independent auditors on december 31, 2010 in terms of adequate implementation of specified minimum requirements and implementation specifications. recertification is planned by 2013. Responsibility foR compliance oRganization at the top management level. responsibility for the compliance management system lies with the top management level at telekom. in line with the high relevance of the topic, a separate board of management department for data privacy, legal affairs and Compliance was created in 2008. group-wide structures for efficient compliance management have been in place since 2005. the compliance organization is comprised of the Chief Compliance officer, the Compliance Committee and central as well as local compliance organizations the group Compliance manage- ment department holds central responsibility. it develops group-wide standards, tools and processes to guarantee compliant conduct at the company. compliance committee provides internal consulting. the Compliance Committee consists of executives from the following areas: Compliance legal affairs data protection human resources Security internal audit the Compliance Committee helps the compliance organization design and conduct a compliance program. it also encourages company departments that deal with compliance topics to share experiences and information with each other. compliance officer plays key role in compliance management. the Chief Compliance officer reports to the group board of manage- ment member for data privacy, legal affairs and Compliance. he plays a key role in setting up the compliance management system and main- taining it over the long term. the Compliance officer reports directly to the board member for data privacy, legal affairs and Compliance and has the right, in consultation with said board member, to send reports to deutsche telekom ag‘s board of management as well as the audit Committee. according to the german Corporate governance Code, the audit Committee is responsible for compliance issues. internAtionAl collAborAtion improveD. different legal practices and cultural values in the various countries where deutsche telekom is active represent a significant compliance challenge. in line with the group‘s international structure, strategic issues are discussed with an international Compliance advisory team and a shared vision is defined. the team is a „trend-setter“ of sorts, as it provides incentives for designing and implementing balanced compli- ance structures at the deutsche telekom group. we have been promoting group-wide cooperation for years with the international Compliance days, an annual meeting of the representati- ves of all compliance organizations of the international subsidiaries. on april 25 and 26, 2012, around 120 representatives from 26 countries came to bonn at the invitation of the central Compliance department to attend the eighth annual meeting. there, they discussed new initiatives to advance the compliance management system. participants also dis- cussed how the systems‘ rules and policies can be integrated even bet- ter in daily work routine. telekom is preparing another international Compliance day in bonn in april 2013 to continue the successful colla- boration.
strAtegy & mAnAgement ComplianCe 55 compliance policies Revised and implemented. the group policy on avoiding Corruption and other Conflicts of interest (or anti-Corruption policy) and the group policy on the acceptance and granting of benefits (or benefits policy) were revised in 2011. the anti-Corruption policy serves as an overarching policy and a link between the Code of Conduct and the detailed rules of the more speci- fic policies which regulate the acceptance and granting of undue bene- fits, sponsoring, donations, benefits extended in the political sphere, dealing with consultants, the ban on insider trading and anti-competitive agreements. in addition, it defines the organizational obligations and measures to prevent corruption and other conflicts of interest. the benefits policy governs how to handle gifts, entertainment and invita- tions to events in business relationships. this policy are now in effect and mandatory throughout the group. it was approved by all german group units and announced in 2012. at the international level, the process will involved greater outlay because we first had to check whether the policies complied with relevant natio- nal laws. Still, almost all international units introduced the policy in 2012. the process will be completed in 2013. the introduction is being accompanied by communication and training campaigns. employee tRaining foR stRengthening compliance. during the reporting period, telekom in germany conducted various training and awareness programs to communicate our key anti-corrup- tion topics: more than 1,700 managers and experts in germany, from the board of management, top management and employees from other selected areas, completed custom anti-corruption training programs in 2012. these face-to-face events, which will continue in 2013, cover the main anti-corruption regulations, using case studies to deepen understan- ding. the compliance team worked with the various areas in advance to develop specialist case studies so that training courses could be tailored to the specific needs of each area. telekom addresses other employee groups with its anti-corruption e-learning module. the module is designed in particular to familiarize them with the content of the anti-Corruption and benefits policies, help them recognize typical corruption risks in day-to-day work, and provide guidance on how to deal with them correctly. almost 16,000 employees in germany received this risk group-specific training between Septem- ber and december 2012. the e-learning course will subsequently be adapted as necessary and introduced at the international subsidiaries. the face-to-face training courses and e-learning sessions are scheduled to be completed over the course of 2013. the „bearing compliance in mind“ e-learning module is targeted at all telekom employees in germany as an ongoing campaign. all new employees will be required to complete the module as well. the module communicates the most important compliance requirements and conduct guidelines in terms of our guiding principles, our Code of Conduct, current legal regulations and internal policies. employees learn where to report compliance breaches and where to ask for help with questions relating to compliance or the Code of Conduct. inteRnet poRtals foR pRevention and advice. Ask me! in order to prevent compliance risks, we set up the „ask me!“ portal in 2008. here employees can ask compliance-relevant questions, for example regarding the Code of Conduct or laws and internal policies. „ask me!“ offers reliable information that employees can apply in their daily work routines. tell me! we are dependent on the input of our employees, business partners, customers and other stakeholders when it comes to investigating violat- ions of internal policies, laws or codes of conduct. „tell me!“ is a portal that is also accessible to external parties, which can be used to report misconduct via e-mail, phone and fax. investigations of suspected coRRuption. telekom employs a zero tolerance policy when it comes to corruption. Violations are systematically investigated and prosecuted in order to create maximum transparency. review of irregularities in t-systems international‘s sponsorship activities. an internal investigation that was triggered by an anonymous tip gave rise to the suspicion that an arrangement violating compliance regulati- ons had been made in the context of the business relationship between t-Systems international gmbh and a major car manufacturer to reward sponsorship involvement by awarding future contracts for it services. due to this, t-Systems international gmbh immediately terminated employment of the responsible sales manager and an external consul- tant and sent the internal report to the prosecutor‘s office responsible for further review. on the basis of the report, the public prosecutor initia- ted a preliminary criminal investigation, which resulted in charges being brought to the regional Court in Stuttgart. the regional court gathered additional evidence during the interim proceedings and initiated the main proceedings in march 2013. dates have not yet been set for the trial.
strAtegy & mAnAgement ComplianCe 56 majoR ongoing litigation. deutsche telekom is party to several proceedings both in and out of court with government agencies, competitors, and other parties. the proceedings mentioned in the 2012 annual report are of particular importance from deutsche telekom‘s point of view. we also require our suppliers to comply with the ethical, social and envi- ronmental standards defined in our Social Charter and to observe basic human rights. we conduct regular social audits to determine whether our strategic suppliers, including those that present a particularly high risk, are in compliance with these requirements. the european Commission is currently preparing regulations for certain industries specifying how to address human rights. these rules will be based on the un guiding principles on business and human rights. deutsche telekom was involved in a committee of experts that helped structure these rules for the iCt industry and participated in the final draft review process in december 2012. Respect foR human Rights as an ingRained pRactice. respecting human rights is part of the fabric of deutsche telekom and a principle that is entrenched at our company worldwide. our Code of Conduct, which applies group-wide, stipulates our requirements for ethical conduct. the Social Charter adopted in 2003 defines group- wide regulations regarding how to deal with employees and suppliers. the Charter is based on the principles of the united nations global Compact , the conventions of the international labour organization (ilo) and the organization for economic Co-operation and develop- ment (oeCd). the head of group relations management is responsible for all matters dealing with human rights issues at deutsche telekom. this position has existed in this form since late 2012. telekom publishes an annual social performance report in which we assess all of our group companies‘ compliance with the provisions set forth in the Social Charter . we added two special questions on the observance of internationally recognized human rights to our annual survey for the 2012 report. none of the responses indicated non-compli- ance with the Social Charter . in addition to human rights issues, we are committed to guaranteeing official employee rights on all of our markets on the basis of our Social Charter and are involved in developing measures that in part exceed national legislation in the respective countries. minimum standards for dealing with our employees are also defined by the telekom diversity policy, whose aim is to prevent discrimination based on gender, age, disabilities, ethnic origin, religious beliefs and sexual orientation.
strAtegy & mAnAgement riSk & opportunitieS management 57 risk & opportunities management. telekom‘s corporate environment is becoming increasingly complex and dynamic. technological developments, state regulation and inten- sifying competition require a systematic, anticipatory management approach to risks and opportunities. the group-wide risk and opportunities management system is a key strategic tool in our corporate management processes. it helps us iden- tify and evaluate negative effects and the potential of current and future trends at an early stage and control their consequences. deutsche telekom‘s 2012 annual report provides extensive informa- tion on current opportunities and risks that are also relevant in terms of corporate responsibility.
strAtegy & mAnAgement data priVaCy 58 data priVaCy. millions of customers entrust telekom with their data. in order to live up to this responsibility, we place the highest priority on protecting our cus- tomers‘ private data. we developed an extensive catalog of measures and created a separate board of management department for data pri- vacy, legal affairs and Compliance to handle the topic at the highest management level of our company. we undergo regular audits conduc- ted by an external data privacy advisory council as well as independent certification bodies. making our data privacy measures transparent to the public is a prin- ciple of utmost importance for us. we are the first dax-30 company to publish an annual data privacy report, which documents all processes at the group that are relevant to data privacy. we have been publishing an integrated report on data privacy and data security since 2011. with an enhanced format, our new data privacy and data security report aims to make complex topics easier for readers. the text alternates bet- ween short statements, vibrant interviews, background reports and commentaries, thereby meeting different informational needs. Contribu- tors include telekom specialists as well as external experts such as the Chairman of the munich Security Conference and a member of the Chaos Computer Club. in addition to publishing our annual report, we also report on all events relating to data theft and data misuse that have been reported to the relevant investigation authorities, present up-to-date measures for improving data privacy and provide important tips for the secure hand- ling of personal data at http://www.telekom.com/dataprotection. putting data pRivacy into pRactice ‒ an aWaRd foR the WinneR. one of telekom‘s key objectives is to raise awareness of how to handle personal data responsibly on an ongoing basis. telekom publishes an annual data privacy report to gauge the level of data protection at the group. the report includes information on internal communication mea- sures, internal audits and changes in the regulatory landscape. our employees recognize the need for data privacy measures and colla- borate closely across departments to cover all data privacy require- ments. the general opinion is that data privacy can only be successful when everyone works together. the 2012 Data privacy Award goes to t-systems Austria. telekom traditionally combines its evaluation of the basic data privacy audit with presenting awards to the international subsidiaries with the best results. the winner of the latest award was announced in bonn by the board member for data privacy, legal affairs and Compliance on January 28, 2013, european data privacy day, at an internal ceremony. first place for the 2012 data privacy award went to t-Systems austria, followed by t-Systems poland and t-Systems Czech republic.
strAtegy & mAnAgement goVernment relationS & regulatory iSSueS 59 goVernment relations & regulatory issues. as a globally active company with a strong presence in europe, deut- sche telekom acts as a discussion partner for governments, parlia- ments, authorities and ngos on all issues related to iCt and innovation. headquartered in germany, we receive special attention from german domestic institutions. we also have a representative office in brussels, where we engage in dialog with the institutions of the european union as well as with other associations and organizations. we engage in active dialog with similar institutions in countries in which deutsche telekom is active, particularly in the european markets and in the united States. politicians and government authorities influence the development and availability of the network infrastructure, technologies and services that are required for future iCt solutions such as cloud computing. not only does this directly impact the competitiveness of telecommunications companies, it also impacts business in general, which relies on having a fast network infrastructure as well as state-of-the-art telecommunica- tions services. in addition to economic factors, networks and services are of considerable importance for maintaining a sense of community in society. decision-makers from parliaments, authorities and governments need the exchange of ideas with representatives of society and compa- nies to help them tackle these challenges. Communication was also key during the preparation phase of the new telecommunications act, which was approved and went into effect during the reporting period. that is why deutsche telekom engages in active, ongoing dialog with interested stakeholders from politics and the general public. our partners from parliaments, governments and non-profit organiza- tions need to uphold their independence and integrity. this principle is codified in telekom‘s employee guidelines which were revised in early 2011. for example, they prohibit donations to political institutions in germany as well as non-transparent attempts to exercise influence. these guidelines make sure that we base our political communication on facts, expertise, credibility and integrity. deutsche telekom is also registered with all the required information in the public transparency register for lobbyists in brussels. this is the basis for recipients to expe- rience information provided by telekom as authentic and trustworthy, so that it can be assimilated in opinion-building processes in the political arena and society. bRoadband netWoRk Regulation to encouRage investment. ments for investing in these broadband technologies, creating a broad basis for long-term prosperity. deutsche telekom has been making a contribution to this area for years by investing heavily in the infrastructure for fixed-line and mobile inter- net. the high-speed internet is giving rise to further expectations and demands by society that again require further investments. for example, we need to guarantee user security in the global networks and continue to increase confidence in the services being offered. at deutsche tele- kom, we take these challenges seriously. however, these need to be supported by future-thinking regulatory policies that promote invest- ment in the next generation broadband network. the only way to achieve this is to provide stronger investment incentives and better plan- ning security for the industry. the eu Commission is planning to approve decisive framework conditions in this area. however, it is impor- tant that these are also implemented by the eu member states and incorporated into the daily activities of the regulatory authorities for tele- communications. they include: increasing planning and legal security for investors before network expansion begins giving market solutions priority above regulation establishing regionally differentiated regulation that takes the competitive situation in the various regions into account better options for allocating risk fairly among investors and competitors looking for access to their infrastructure using synergies by facilitating the shared use of existing infrastructure in all network sectors pRotecting the open inteRnet. the topic of network neutrality continues to get a lot of attention from the public. more specifically, people are worried that the internet they know today may be restricted in the future. Services that used to be freely accessible would only be available for a fee or possibly not at all. however, deutsche telekom is committed to preserving an open inter- net. Content and services will continue to be accessible online in the future based on the „best effort“ principle. high-speed internet is an important growth engine. increasing producti- vity, sales markets for new services and new, more sustainable ways of working and living depend on modern transmission technologies with high data rates. that is why the lawmakers need to improve the require- deutsche telekom continues to expand its transmission capacities as well as its infrastructure so that we are able to cope with our customers‘ increasing data traffic and constantly upgrade our network. this is the only way for us to meet our customers‘ increasing demands and live up
strAtegy & mAnAgement goVernment relationS & regulatory iSSueS 60 to the requirements of online content and application providers to pro- vide their services in high quality in the future as well. telecommunica- tions networks cannot be operated without network management. that is why deutsche telekom is developing business models based on the „best effort“ internet principle that online businesses can use to offer innovative services that pose specific demands on transmission quality and quality of service. we do not monitor any of our customers‘ content but focus on managing the rapidly growing number of different types of online data flows. deutsche telekom supports the freedom of the internet and does not influence user or provider content in any way. telekom will continue to take a non-discriminatory approach to marke- ting services with different quality-of-service levels in competition with other network operators. differentiating quality-of-service levels also makes an important contribution to financing broadband network expansion in the medium and long term. it gives consumers greater choice and guarantees a high quality level. deutsche telekom supports the european obligations to provide trans- parent information on quality of service. they give national regulatory authorities the opportunity to define minimum quality requirements for services and to make the provision of certain information to consumers mandatory. Combined with general competition law, these legal provisi- ons constitute an effective way to ensure an open internet and give con- sumers a choice between different quality-of-service levels provided by one or several telecommunications providers. during the reporting period, deutsche telekom collaborated intensively with other mobile communications providers to develop measures to improve transpa- rency regarding the bandwidths available to customers in the respective mobile networks. the companies are also involved in an intensive exchange with the german federal network agency for this purpose. this collaboration will be continued in 2013. encouRaging consumeR dialog. one of deutsche telekom‘s aims is to become the most highly regarded service company in the industry. that is why we gave high priority to consumer-related topics in 2012 as well. we further strengthened inter- nal functions dealing with consumer relations in order to improve exchange between deutsche telekom‘s product and service develop- ment areas and our external stakeholders from politics and the general public. Central topics in legislation and in stakeholder dialog as well as efforts to create voluntary regulations for the industry beyond legal provisions included: improving consumer data privacy, e.g., in the online advertising business improving extensive protection of minors, irrespective of the technology used, at the national and eu level improving customer service standards improving customer privacy in telecommunications, e.g., when switching providers for fixed-line and mobile connections in the interest of consumers, we supported self-regulation for the online advertising business in germany in the area of usage-based online advertising (targeting) in 2012. targeting means consumers‘ online behavior is analyzed and ads are specifically selected to meet their inte- rests. in order to strengthen consumer rights in this area, we support increased transparency and informational self-determination by enab- ling consumers to lodge objections beyond sector boundaries. Since 2012 we have been involved in the related initiative being conducted by ddow, a voluntary self-control organization that promotes data privacy in online advertising in germany. we also rely on self-regulation and providing information to protect the private sphere of consumers when it comes to geodata services. to this end, we helped set up an information platform for Selbstregulierung informationswirtschaft e.V., an association for self-regulation in the infor- mation business. people can use the information and objections plat- form, „data privacy code for geodata services“ to directly block images online that show their city, street or house. deutsche telekom continued to make significant progress in 2012 for consumers wishing to switch fixed-line providers in collaboration with other network operators. the goal is to make it easier for consumers to switch providers without any service interruptions. we were even able to launch the new switch-over processes, which apply to all mobile net- work providers, throughout the entire market in late 2012. these pro- cesses now enable number portability from customers‘ current mobile communications contracts. in all these areas, telekom stands for a con- structive and solution-oriented approach that is geared to both the con- sumers‘ interests and the interests of our company.
strAtegy & mAnAgement regional added Value 61 regional added Value. as a responsible corporate citizen, telekom considers it its obligation to promote regional added value and social stability at our company sites. we generated revenues of eur 58.2 billion globally in the financial year 2012 with 232,342 employees (2012 annual average). almost 56 per- cent of revenues were generated outside of germany. we contribute sig- nificantly to the economic development in the various regions through salaries, taxes and procurement. telekom net added value. telekom publishes the net added value generated for the group each year. these figures show how different stakeholders benefit from corpo- rate performance. by paying wages and salaries and contributions to pension schemes, for example, we contributed substantially to regional purchasing power and a secure future at our locations. our net added value remained largely constant in 2012 at eur 31.2 billion compared to eur 31.1 billion in the previous year. this figure shows that economic development at our company sites is closely connected to long-term business success. connect the unconnected. we have been focusing our investments on full-coverage expansion of fast and stable networks over the past few years and continued to do so during the reporting period. with our network expansion, we are laying the foundation for everyone to be able to participate in the information and knowledge society. our cash Capex , a kpi that summarizes our investment in equipment and systems, came to eur 3.4 billion for ger- many in 2012. of this, we invested eur 1.0 billion in intangible assets (without goodwill) and eur 2.4 billion in property, plant and equipment. we paid eur 0.7 billion in taxes in 2012. in the context of the „yes, i can!“ association, we also supported initiati- ves in germany that promote projects for children and young people in social hotspots, increasing their confidence in their own skills. we also offer customized solutions to provide people from disadvantaged back- grounds with access to new communications technologies and media. these include: Subsidized rates for people with low incomes or disabilities extensive activities to promote media skills promoting the integration of people from disadvantaged backgrounds telekom helps bridge the digital divide by supporting equal opportuni- ties for all to participate in education, knowledge and communications. in doing so, the group helps to strengthen the economic standing and quality of life as well as competitiveness at its locations and in its mar- kets. education–the foundation of a sustainable society. telekom makes a significant contribution to promoting young people‘s skills in the areas of technology and natural sciences through its training activities and its own foundation. the deutsche telekom foundation, which was established by deutsche telekom ag, continues to be very active in helping maintain and improve the german educational landscape. the foundation is currently one of the largest german corporate foundations with funding capital of eur 150 million. it is dedicated to improving education levels in the Stem subjects (science, technology, engineering, and mathematics) throughout germany. Since 2012, the foundation has been focusing on encouraging small children‘s interest in natural science and technology. the deutsche telekom foundation and the little Scientists‘ house foundation held the „inquisitive minds“ competition for day care centers in 2012. in the 2012/2013 academic year, the total number of apprentices and students came to around 9,300, including some 1,200 students on cooperative degree courses. this makes deutsche telekom one of the largest providers of vocational training programs in germany. ReseaRch investments in geRmany. the development of innovative iCt solutions is a key growth driver not only for our industry but also for many other sectors. the telekom group‘s central research and development unit, telekom innovation laboratories (t-labs), is an internationally important player in this area. in addition to our german locations in berlin, bonn and darmstadt, we also run institutes in tel aviv and los altos, California. in 2012, some 400 telekom experts and researchers studied fast, secure and sustaina- ble communication solutions at t-labs . the focus of their work in 2012 was on medium-term topics such as developing technologies that ena- ble up-to-date differentiation options and identifying new business avenues. t-labs also finances university chair positions and cooperates with berlin universities as well as with a number of other universities and institutes worldwide. together with other partners from the industry as well as start-ups, t-labs helps bring the worlds of research and busi- ness together and secures the transfer of know-how into telekom. telekom‘s research and development budget totaled around eur 100 million in 2012.
nAtionAl compAnies 62 national Companies. with companies in about 50 countries, deutsche telekom is one of the world‘s leading telecommunications providers. implementing and embracing the Cr strategy on a cross-border basis is key to the deutsche telekom group reaching its goal of becoming a Cr leader. the different degrees of Cr maturity in the international subsidiaries, due among other things to local conditions, represent a major challenge in this regard. Click on the map to access the profiles of selected subsidiaries describing their Cr activities and highlight projects.
nAtionAl compAnies europe albania albania. 63
nAtionAl compAnies europe austria austria. 64
nAtionAl compAnies europe austria 65
nAtionAl compAnies europe bulgaria bulgaria. 66
nAtionAl compAnies europe Croatia Croatia. 67
nAtionAl compAnies europe Czech republic 68 CzeCh republiC.
nAtionAl compAnies europe Czech republic 69
nAtionAl compAnies europe france franCe. 70
nAtionAl compAnies europe germany germany. 71
nAtionAl compAnies europe germany 72
nAtionAl compAnies europe greece greeCe. 73
nAtionAl compAnies europe greece 74
nAtionAl compAnies europe hungary hungary. 75
nAtionAl compAnies europe macedonia 76 maCedonia.
nAtionAl compAnies aSia malaysia malaysia. 77
nAtionAl compAnies europe montenegro 78 montenegro.
nAtionAl compAnies europe netherlands 79 netherlands.
nAtionAl compAnies europe poland poland. 80
nAtionAl compAnies europe romania romania. 81
nAtionAl compAnies europe Slovakia sloVakia. 82
nAtionAl compAnies europe Slovakia 83
nAtionAl compAnies europe united kingdom 84 united kingdom.
nAtionAl compAnies europe Spain spain. 85
nAtionAl compAnies north ameriCa uSa usa. 86
networks 87 networks. we are pursuing full-area broadband infrastructure expansion on all of our markets with technologies like vectoring, which accelerates data transfer in existing dSl networks. high-speed internet and reliable mobile communications connections are key when it comes to giving everyone the chance to participate in society – a goal that we have com- mitted ourselves to within the scope our Cr action area, „Connect the unconnected.“ the current megatrend of using virtualized it infrastruc- tures with cloud computing also requires broadband network access. that‘s why we are providing more and more areas that previously had no coverage with fourth generation mobile communications technology (4g) as a fixed-line alternative with high data rates.
networks network & infraStruCture expanSion 88 network & infrastruCture expansion. digital networking is one of the main trends in the modern information society. full broadband coverage is becoming a key requirement for participating in society. that is why we focus our efforts on using new technologies to connect areas that previously had no coverage as part of the Cr action area „Connect the unconnected.“ today, as a result of high-performance standards, top data transmission speeds are provided even in remote areas: adSl and adSl2+ VdSl gprS/umtS and hSdpa/hSupa lte the network infrastructure is at the heart of our business. as germany‘s largest provider of telecommunications services, telekom sets up and operates networks that meet the high demands of the gigabit society. telekom continues to rely on a combination of wireless and fixed-line technologies, with an emphasis on the high-speed lte mobile commu- nications network and the new VdSl vectoring technology. the group‘s extensive, integrated network strategy, which was adopted in 2012, describes the steps that telekom is planning to take in the medium term along the road to the network of the future. the main objectives are growth, efficiency and quality. netWoRk expansion in line With political goals. telekom supports the eu Commission and the german government‘s network expansion goals. we plan to provide high-speed internet access to as many households as possible mainly in rural areas of ger- many that do not yet have coverage. in this context we use VdSl as an important starting point for even more convenient iCt solutions in the future. netWoRk expansion stRategy Relies on bRoadband investments. providing high bandwidths is a key component of telekom‘s network expansion strategy. we once again made extensive investments in this area in 2012, including investments in fiber-optic networks, new mobile communications technologies and it processes. telekom in germany has been the largest investor for years now when it comes to providing broadband access. we purchased lte frequencies in 2010, laying the foundation for further investment in fast, mobile internet. these frequen- cies, which used to be used for television and radio broadcasting, are now available for providing full broadband coverage. in the fixed network, the fastest transmission speeds can be achieved with fiber-to-the-home (ftth) technology. however, laying the cables and providing ftth to each household can be very costly because of the required civil engineering works, especially in rural areas. Costs can be reduced with fiber-to-the-curb (fttC) technology where fiber-optic systems are only installed up to the cable distribution boxes. with vecto- ring millions of household in germany can get high-performing broad- band connections without ftth expansion and at a reasonable costs— provided that the german federal network agency approves the use of vectoring technology. the innovative hybrid technology, which we are planning to introduce, will transmit data traffic via vectoring and lte in the future, combining the advantages of both networks. from 2014 this will enable download speeds of up to 200 mbit/s and upload speeds of up to 90 mbit/s. telekom is planning to invest around six billion euros in the fiber-optic network by 2020 to support its network expansion strategy. it is also planning to expand its fiber-optic network to cover around 65 percent of households by 2016. up to 85 percent of the german population should have access to the new lte wireless technology by 2016, with data transmission rates of up to 150 megabits per second (mbit/s). moRe bRoadband foR geRmany pRoject. telekom also continued its cooperation with local governments in 2012, responding to calls to bid in the context of the more broadband for ger- many project. in those areas where broadband expansion may not be economically feasible for us as a company, support from public funding is a viable option. for example, communities could provide existing con- duits that are not in use, perform the civil engineering work required or make a financial contribution. more than 4,000 communities and over one million households have been receiving broadband infrastructure through these means since 2008. we entered into 830 cooperation pro- jects with communities to expand the broadband infrastructure in 2012 alone, making it possible to give more than 280,000 households access to the broadband network. we are planning to team up with communi- ties for additional projects of similar size and scope in 2013. Since 2011, telekom has also been building up VdSl technology with band- widths of up to 50 mbit/s in rural areas on the basis of such cooperation projects. plans to accelerate broadband network expansion. in view of the planned reorientation of the eu‘s regulatory policies, which was announced in July 2012, telekom is considering pushing broadband expansion in germany in the next few years. by increasingly extending fiber-optic systems to the vicinity of our customers and using vectoring as a new transmission technology, we will be able to provide up to 24 million households (out of a total of 40 million) with state-of-the- art high-speed connections. however, we are still waiting for the german federal network agency to approve use of this technology.
networks network & infraStruCture expanSion 89 we are also planning to equip the entire mobile network with lte by 2015 so that we can provide even higher bandwidths throughout ger- many. this will enable us to create an integrated infrastructure that pro- vides large bandwidths for both fixed-line and mobile services. using syneRgy effects foR ftth expansion. Costs reduction potential and synergy effects can be realized and risks can be dispersed when installing new fiber optic networks based on network expansion collaborations. that is why we are open to collabora- tion and are reviewing all forms of cooperation in both the fixed-line and mobile communications areas. for the first time, telekom is working with energy service providers to set up a fiber-optic network in a city. in february 2012, we signed a cooperation agreement with network provider „eins,“ formerly the muni- cipal utilities company in Chemnitz, germany. „eins“ is building a pas- sive fiber-optic access network in Chemnitz in several stages. telekom deutschland leases the network, adds the system technology necessary for active operation and uses the network to offer users its double and triple-play products. the fiber-optic network project in Chemnitz is telekom‘s largest project in all of germany. Some 20,000 households in the city located in Saxony were provided with the new broadband con- nections between fall 2012 and January 2013. the plan is to add ano- ther 2,000 buildings with another 20,000 households by late 2013. by the end of 2014, the total figure should increase to 60,000. around 1,000 kilometers of new cable will be laid over the course of this project. expansion of all-ip netWoRk technology. makedonski telekom (t-home) continued to expand its ip-based net- work during the reporting period. with a total investment volume of eur 14 million, the network upgrade is due to be completed by the end of 2013. within the first nine months of the project 100,000 customers were migrated to the ip network. they can now enjoy the benefits offe- red by the new ip-based multimedia platform. by replacing the existing digital telephone exchanges, the company is simplifying the everyday lives of its customers through the high quality of its new, converged mul- timedia services. besides, the new ip-based technology will significantly reduce the network‘s overall energy consumption once the old digital equipment has been switched off. thanks to the company‘s investment in this new technology, macedonia will be the first country in Southeast europe to have a fully ip-based network. telekom testing teRastReam in cRoatia. in a pilot running in the zagreb region of Croatia deutsche telekom is testing its new teraStream architecture. teraStream is a network techno- logy based on a cloud-based ip architecture. hrvatski telekom is thus taking on a pioneering role within the deutsche telekom group. the new network technology significantly reduces the it complexity of exis- ting networks, with the cloud concept greatly facilitating network admi- nistration and management. deutsche telekom has developed teraSt- ream to deal with the rapidly increasing volume of data traffic—now and in the future. aWaRd foR mobile communications netWoRk migRation to all-ip. in geRmany. we are planning to switch our entire network over to an all-ip infrastruc- ture in the next few years. with this step, fixed network and mobile com- munications will be integrated end-to-end in a next generation network based on the internet protocol (ip ). numerous it systems will be simpli- fied and updated for this purpose. many people already use ip-based solutions to organize their day-to-day lives conveniently and individually. we are constantly improving our offer of fast mobile communications and fixed-line connections to lay the foundation for this change. the voice and data service platforms, which are currently separate, will be integrated onto a standardized plat- form over the course of the all-ip migration. this should help reduce energy consumption considerably. the all-ip migration and the demand for increasingly faster bandwidths require the provision of new, efficient technologies for both data trans- port and individual network access. that is why we are planning to further expand our fixed-line network in 2013 on the basis of vectoring technology. in the network test carried out by the german telecommunications magazine „connect“ in 2012 we held top spots in both germany and austria. in austria we came first in the category of voice quality and were given the overall rating of „very good.“ german „connect“ readers felt the same, rating telekom the best and most reliable provider of both telephony and mobile internet. in another network test, this time carried out by the „Chip online“ portal, our mobile network in germany came top for the third time in a row. mobile netWoRk opeRatoR of the yeaR foR the thiRteenth time. in germany, we were voted „mobile network operator of the year“ for the thirteenth time running by readers of the trade magazine „connect“. we were also named best mobile network operator by readers in austria.
networks network & infraStruCture expanSion fixed-line & broadband technologies 90 fixed-line & broadband teChnologies. oveRvieW: access technologies. data transport within the internet infrastructure and individual use of the internet both rely on a number of innovative technologies. many people already use network-based solutions to organize their day-to-day lives conveniently and individually. that is why we are continuously striving to improve our offer of high-speed connections, both for fixed-line and mobile communications. the dSl-based transmission protocols, adSl, adSl2+ and VdSl as well as the expansion of the fiber-optic infrastructure into our customers‘ homes (fiber to the home, ftth) will cause ever higher data transmis- sion rates in the fixed-line sector. we are able to achieve similar increases in performance in the mobile communications area by switching from 2nd generation networks (2g ) with gSm and edge to third generation networks (3g ) with the umtS- based standards hSdpa/hSupa and hSpa+. with the switch to the long term evolution (lte) transmission standard of the future (also referred to as „4g“), data rates will increase many times over and reach broadband speeds.
networks network & infraStruCture expanSion fixed-line & broadband technologies 91 adsl2+ expansion. adSl2+ (asymmetric digital Subscriber line 2+) is the current dSl standard being used in deutsche telekom‘s fixed-line network. 23.5 mil- lion households had access to bandwidths of up to 16 mbit/s based on adSl2+ at the end of 2012. in 2011 we began introducing mSan (multi service access node) to integrate legacy systems into the all-ip network. it replaces the splitters that were previously used for network connection to separate voice and data and consequently enables the use of dSl lines with fully ip-based services as well as traditional phone services without the necessity to replace existing devices. by late 2012, 4,709 exchange areas had mSan service. we will continue the migration process in 2013. expansion of fibeR-optic netWoRks in macedonia and montenegRo. optical fiber offers significant advantages over copper wires in long- distance and high-demand applications because of its much lower attenuation and interference. that is why deutsche telekom is gradually replacing copper wires with optical fibers in many of its networks—for example at makedonski telekom where replacing the copper network by a state-of-the-art fiber to the home (ftth) network now means 14 percent of households in the country are already benefiting from the high-performance fiber-optic network. in 2012 Crnogorski telekom also continued to roll out of its fiber-optic network (fiber to the home or ftth). by January 2013 the company had 3,777 ftth and 181 fttb (fiber to the basement) users. vdsl expansion. deutsche telekom began expanding the high-speed dSl version, VdSl (Very high bit rate digital Subscriber line), with hybrid networks made of fiber optic and copper lines in 2006. the conventional copper lines are used to bridge the last few hundred meters to the home. that means 12.6 million households already have access to bandwidths of up to 50 mbit/s (as of december 2012). bandwidths of up to 16 mbit/s are availa- ble in 7,800 out of around 7,900 exchange areas. expansion is not pos- sible in the remaining exchange areas due to technical or financial rea- sons. almost 21.5 million households in germany can receive triple-play products based on bandwidths of between 16 mbit/s and 50 mbit/s. in early 2013, telekom announced that it intended to include more com- panies in its VdSl marketing activities in addition to its current sales partners. the collaborations are based on the „contingent model“, which gives partner companies a volume discount for VdSl connec- tions in return for purchasing a certain minimum amount. telekom is planning to expand this model to include fiber optic connections to the home as well as vectoring connections. with VdSl , telekom was able to considerably increase the speed of its dSl connections by more than three times the speed provided by adSl and more than twice the speed provided by adSl2+. that required a hybrid network with fiber-optic cables extending close to our customers‘ homes. however, conventional copper lines are used to cover the last 300 to 500 meters to the customer‘s home. these lines set a limit on data transmission speed. with the new VdSl vectoring technology, we can now reach high data transmission speeds of up to 100 mbit/s. ftth expansion in geRmany. fiber optics is the fastest data transmission medium. one of our goals is to connect a large number of households directly to our high-speed fiber-optic network (ftth). that is why deutsche telekom continues to expand its fiber-optics network, laying the foundation for the gigabit society. this network of the future will provide our customers in ger- many with high-speed access of 200 mbit/s (download speed, up to 100 mbit/s upload speed) to the internet, to entertain offers and to mul- timedia applications—in one-of-a-kind quality and variety. investments by telekom in new-fiber optic networks will be based on demand. two requirements need to be met in the expansion areas before civil engineering works can start: at least 80 percent of residents need to give their permission to have their building connected or for cables to be laid in their building and at least ten percent of customers need to have preordered the service. if these conditions are not met, the expansion will have to be postponed. at the same time, we are evaluating the feasibility of using other techno- logies, for example VdSl with vectoring. the number of cities with 80 percent owner approval and 10 percent preorder rates increased by eight to a total of 20 in 2012. we are cur- rently either expanding or getting ready to offer the ftth network in these cities. ftth expansion is planned for additional cities in 2013. requirements for Ftth connections met. Since 2010, we have met the requirements for connecting a total of 340,000 households (homes passed) to the fiber-optic network by lay- ing fiber-optic cables in residential streets. this includes expansion pro- jects completed in collaborations with municipal utilities companies and other partners. more connections should be available by the end of the year.
networks network & infraStruCture expanSion fixed-line & broadband technologies 92 cooperation with housing businesses in north rhine-westphalia. we are specifically looking to cooperate with the housing industry in our expansion activities. homeowners who agree to the expansion can expect the value of their property to increase considerably as a result of ftth connections. deutsche telekom embarked on a trend-setting iCt infrastructure collaboration with deutsche annington immobilien ag (daig). the two partners gave the go-ahead for a fiber-optic connection of around 171,000 homes managed by daig in germany in march 2011. in several steps, deutsche telekom will provide daig buildings at approximately 600 locations with high-speed broadband connection at competitive prices. during the first phase, we provided 42,000 daig apartments in north rhine-westphalia with access to the new network. initially, our agreement with daig covers the provision of tV services via telekom‘s cable connections. an additional ftth expansion has been agreed for some of the properties and is scheduled to start in 2013. maximum speeds With vdsl vectoRing. in addition to ftth expansion, telekom is also driving fiber-to-the-curb (fttC) expansion based on hybrid networks that use fiber-optic and copper lines in order to be able to quickly extend broadband coverage. thanks to VdSl vectoring, we can already achieve speeds of 100 mbit/s in these access networks. Vectoring is a technology that was standardized in 2010. it considerably speeds up transmission through the copper cables that cover the final few meters to the customer. all of the signals being transferred in each cable bundle are controlled by a single device. we successfully launched the first VdSl vectoring pilot applications in 2012. however, the regulatory framework needs to be modified before we can introduce the technology because VdSl lines are usually used by several providers to provide their services. Control of these lines by a single network operator is not allowed at present. in late 2012, telekom took the initiative and submitted an application regarding this situation to the german federal network agency. the aim is to establish legal certainty for all market participants as soon as possi- ble so that expansion can begin quickly. the regulatory authorities in austria and belgium, supported by the eu Commission, have already approved the use of vectoring. telekom has announced plans to invest several billion euros primarily in vectoring technology in its fixed-line network should the federal net- work agency decide to approve the application. that would provide up to 24 million households in germany with a faster internet connection. we would be able to connect the first customers in 2014. the hardware needed in the process is ready to go to market. we are currently review- ing how to reduce the new systems‘ energy requirements. if everything goes as planned, telekom will be able to provide 65 percent of households in germany with VdSl vectoring via an fttC infrastructure by 2016. pushing ahead in fixed-line technologies in national companies. the deutsche telekom group is striving to introduce state-of-the-art technologies for network operation. the fixed-line segment is another area where significant progress has been made, as the following examp- les show. hungary: modernizing with wAsp. project waSp, a two-phase modernization project for magyar telekom‘s fixed atm-based adSl network, got under way in hungary during 2012. this modernization process is being undertaken by means of broad- band mSan (multi-service access node) devices with VdSl2 cards. mSan has been chosen because it is a future-proof technology capable of using VdSl (with backward compatibility with adSl and adSl2+), potS cards, or even gpon cards in the future. during the first waSp phase from 2012 to 2014, legacy dSlam ports are being replaced with mSan, using VdSl cards to improve VdSl coverage. the second phase from 2014-17 will involve the rollout of mSan in copper-based areas with VdSl and potS cards for legacy public switched telephone network (pStn) migration in a service-driven way. hungary: moving forward with ip eDge. rapidly increasing fixed and mobile aggregation traffic in hungary necessitates an extension of the capacity of magyar telekom‘s ip net- work. the company‘s ip edge project served to modernize the ip net- work, meet additional capacity needs, simplify operations and enable the introduction of new services. moreover, this technology has enabled magyar hungary to build a future-proof convergent fixed/mobile ip plat- form and at the same time reduce energy consumption. greece: upgraded infrastructure for Aegean islands. in greece deutsche telekom‘s subsidiary ote now offers even faster and steadier broadband connections to the aegean islands. this was achieved by increasing the capacity of the backbone network by adding an extra 50 gbps to specifically meet the islands‘ internet needs. ote‘s 1,885-km offshore network, which connects the aegean islands to each other as well as to the rest of the company‘s backbone network, is based on state-of-the-art dense wavelength division multiplexing (dwdm) technology and ring architecture, which ensures multiple alter- native routings in case of damage to a cable. ote vDsl : ultra-high internet speeds of up to 50 mbps. in greece ote is pioneering the commercial launch of new ultra-high internet speeds of up to 50 mbps through VdSl technology. this is transforming the daily internet experience by offering users options
networks network & infraStruCture expanSion fixed-line & broadband technologies 93 Customers‘ home connections stay protected and they assume no liabi- lity. they can also continue to surf online at high speeds. telekom is planning to expand its cooperation with fon at other international subsi- diaries in bulgaria, greece, romania, Slovakia and hungary in 2013 as well. railnet: we offer our customers wlan hotSpots in high-speed iCe trains on selected routes together with the german railway company deutsche bahn ag as part of our railnet cooperation. and we continue to expand the offer. the plan is to equip all 255 of deutsche bahn‘s high-speed iCe trains and around 5,000 kilometers of railway line with wlan hotSpots by late 2014. we will increasingly be using umtS/ hSpa and lte technologies as well as flash-ofdm . the munich– nuremburg, wolfsburg–berlin and berlin–hamburg routes were equip- ped with lte by the end of 2012. a mixture of lte and hSpa is being used between frankfurt and nuremberg, while hSpa is mainly be employed on the routes between dortmund, hanover and wolfsburg as well as along the mannheim–basel connection. inflight connections: with our inflight service, we make it possible for our customers to go online via hotSpots on board seven different air- lines, including lufthansa. the service is supported by satellite and made available in collaboration with our partner, panasonic avionics. we equipped 85 percent of the 106 machines in lufthansa‘s interconti- nental fleet with the technology by the end of 2012, which means the airline currently has the most hotSpots on planes. our other customers, gulf air, turkish airlines, transaero, etihad and Jal only recently deci- ded to offer the inflight service, which means only a few of their planes currently feature the service. we were operating 114 hotSpots by the end of 2012 as part of the project. american airlines, another significant flight service provider, jumped on board in January 2013 as well. they currently offer the service in three of their machines. such as faster file downloading, uninterrupted hd video streaming, easy connection of multiple devices and improved online gaming responsive- ness. incReased speed of fixed line inteRnet in slovakia. Slovak telekom increased the speed of fixed-line internet for all its cus- tomers and stepped up the provision of copper and dSl lines by 9.4 percent. the various programs saw increases from 2 mbps to 5 mbps, from 3.5-6.5 mbps to 10 mbps, and from 12 mbps to 20 mbps. internet speed was boosted automatically and free of charge for the customers, who were informed immediately afterwards. Wifi seRvices foR bRoadband inteRnet on the go. we currently offer our customers in germany and elsewhere diverse options for broadband internet use. we operate stationary and mobile wlan hotSpots, for example in public transport, for this purpose. peo- ple who use our hotSpotservice can conveniently access data and infor- mation at more than 11,000 locations in germany, for example at 1,400 mcdonald‘s restaurants, and at some 50,000 of our partner locations worldwide. in 2012, telekom in germany also operated hotSpots at 5,100 public telestations, the multi-faceted successor of the traditional phone booth. we are planning to set up another 5,000 telestations by the end of 2014 to improve our wlan coverage. wlAn to go: telekom customers will receive access to a quickly incre- asing number of hotSpots worldwide with the wlan to go service, starting in the summer of 2013, which will include around eight million hotSpots. this offer will be made possible thanks to our new partner- ship with the largest wifi network worldwide, fon. we expect to create up to 2.5 million additional hotSpots in germany alone by late 2016 thanks to this collaboration. we will be using a technology mix of wirel- ess, fixed-line and wlan, which will enable a seamless transition bet- ween these technologies. in terms of our integrated network expansion strategy, this technology mix has the advantage that wlan and hot- Spots enable high data traffic to be redirected to the fixed network, free- ing up the mobile communications network. wlan to go is based on the concept of mutual sharing. as of June 2013, dSl customers will be able to share the unused capacities of their internet connection with others. participating customers will receive free access to several million wlan hotSpots worldwide from other dSl users who have also decided to make their internet connec- tions available. with wlan to go, customers can also surf online at all telekom hotSpots in germany free of charge. telekom places high importance of data privacy and security with its wlan to go service.
networks network & infraStruCture expanSion 2nd & 3rd generation mobile communications 94 2nd & 3rd generation mobile CommuniCations. incReased 3g netWoRk coveRage thanks to national Roaming agReement in austRia. thanks to a long-term network partnership that t-mobile austria entered into with a competitor, customers in austria have been enjoying an expanded 3g network since late 2012. the agreement has enabled t-mobile austria to considerably improve its 3g network coverage, particularly in rural areas, increasing national network coverage to 94 percent. the collaboration is also cost-efficient and environmentally friendly as it eliminates the need for new 3g sites. amc 3g netWoRk Rated best in the maRket. the amC 3g network was rated the best in the market and awarded the 3g business excellence prize by the 4th infocom albania forum, which took place in tirana on november 20, 2012. „from infrastructure evolution to digital revolution“ was the theme of albania‘s only confe- rence specializing on national and international iCt developments. in addition to setting up state-of-the-art mobile communications net- works, telekom is also continuing to drive expansion of the current 2g and 3g infrastructure. this will enable more and more people to partici- pate in the information and knowledge society through a fast connec- tion. we are also upgrading older systems to meet state-of-art systems technology, which will improve their performance and energy efficiency. high-speed umts With hspa+. Customers in all of germany‘s highly populated areas can also go online via umtS (universal mobile telecommunications system), the third generation (3g ) mobile communications technology. with the umtS-based protocol, high Speed packet access+ (hSpa+), data transmission speeds can be increased to dSl level, i.e., up to 42.2 mbit/s. telekom is recognized as the mobile communications quality leader in germany. we continue to expand our umtS network as part of our tech- nology mix in order to secure this position. by the end of 2012, we were providing umtS-based hSpa+ coverage to 89 percent of the german population. we plan to continue network expansion in 2013 as well. significant impRovements in mobile netWoRks (hspa+, 3g, ip). improving the quality of mobile communications in 2g and 3g networks is another strategic goal throughout the deutsche telekom group, and significant progress was made in a number of subsidiaries during the past reporting period. over 70 percent of the Slovakian population is now covered by Slovak telekom‘s 3g network hSpa+ is available at 415 sites throughout the country. by the end of the reporting period, 3g hSpa+ (21 mbps) out- door coverage had reached 77 percent of the country‘s population. Crnogorski telekom, deutsche telekom‘s subsidiary in montenegro, invested eur 2.1 million in the modernization of its radio access net- work (ran). with 267 2g sites 99 percent of the population is now covered by gprS/edge technology , and with 90 3g sites (all ip- enabled) the umtS/hSpa+ coverage has reached 72 percent of the population. eur 200,000 was invested in ip microwave technology, with 32 tdm-based microwaves hops for 3g sites being replaced by ip microwave ones. during 2012, a total of eur 200,000 was invested in three new 2g sites and five new 3g ones.
networks network & infraStruCture expanSion 4th generation mobile communications 95 4th generation mobile CommuniCations. telekom is very involved in establishing 4g—next generation mobile networks—based on lte (long term evolution) technology. the grow- ing demand for high-speed, location-independent internet can be met with lte, even in areas with weak infrastructure. that is why we focus our efforts on connecting areas that previously had no coverage as part of the Cr action area „Connect the unconnected.“ telekom is intensively pursuing lte expansion to give smartphone and tablet computer users access to the entire range of services at as many locations as possible. setting up the lte netWoRk in geRmany. in 2010, telekom began setting up the lte infrastructure in germany to get its mobile communications network ready in plenty of time for the dramatic increase in smartphone and tablet computer use and to meet it‘s customers‘ growing demands. by the end of 2012 we had set up more than 3,000 base stations and launched the service via lte1800, which we were also setting up at that time, in more than 100 of germany‘s largest cities. hamburg, bremen, berlin, munich and Colo- gne are only some examples of cities that have been receiving lte1800 service ever since. the expansion of lte technology in the 800 mhz range is quickly progressing. closing the gaps. together with the other two 800 mhz network operators, we have met the lte roll-out obligations in germany in all of the 16 federal states. the gaps have been closed—even rural regions now have access to broadband internet. having satisfied the roll-out obligations, we can now use the assigned frequencies in the 800 mhz range across ger- many without restrictions. this enables transmission speeds of up to 50 mbit/s. we had already equipped 2,200 base stations with lte800 technology by the end of 2012. 2,400 additional lte base stations run in the 1,800 mhz spectrum, which is the frequency of choice in urban regions because of the short range. taking both technologies combined, 42 percent of the population had coverage by the end of 2012. we plan to increase coverage to 85 percent of the population by 2016. expanding 4g/lte mobile communications. lte technology, the fourth generation of mobile networks (4g), offers an unparalleled experience for services requiring high wireless data rates. Since deutsche telekom‘s strategic goal is to lead the field in connec- ted life and work, subsidiaries throughout the group are launching and expanding their lte networks. lte rollout in hungary. thanks to the ongoing rollout of lte base stations in hungary, outdoor population coverage reached 27 percent nationwide and 99 percent in budapest by the end of 2012. this expansion put t-mobile hungary ahead of hungary‘s two other mobile service providers in lte services. montenegro: soft lte launch in october 2012. Crnogorski telekom soft-launched lte technology in the country with a trial network of five enodeb radio base stations (rbS): four 2,600 mhz rbS in the podgorica city center area and one 1,800 mhz rbS in kotor to cover the downtown area. cosmote breaking 4g ground in greece. in november 2012, Cosmote launched the first commercial 4g/lte net- work in greece, covering the majority of municipalities in the athens and thessaloniki regions. Cosmote‘s new 4g network is initially availa- ble for uploading and downloading data through 4g tablets and uSb sticks to subscribing customers. there are plans to extend the 4g net- work to other greek cities in the near future. cosmote romania: successful lte lab and field trials. after successfully performing lte laboratory and field trials, Cosmote romania‘s network is ready for expansion into 4g/lte technology in the near future. pioneering the 4g network in croatia. in march 2012, hrvatski telekom (t-ht) launched the first commercial 4g/lte network in Croatia, with base stations located in zagreb, rijeka, osijek and Split. this pioneering achievement will be followed by an expansion of the lte network to cover other urban and rural areas in the country. t-mobile Austria gets ready to expand its lte network. t-mobile austria has been getting ready to expand its lte network throughout austria. in preparation of the expansion, the company fini- shed updating its entire gSm infrastructure by november 27, 2012, and equipped it with a new transmitter technology. at the same time, t-mobile austria improved voice and connection quality for more than four million customers. Call interruptions were reduced by 28 percent while reliability increased by 79 percent. Connect magazine rated t-mobile austria‘s mobile network as „very good“ in october 2012.
networks mobile CommuniCationS & health 96 mobile CommuniCations & health. cussed in this context. one of our areas of focus in 2012 was develo- ping easily comprehensible information on deCt telephony, wlan and safety. internal and external experts from the areas of health, safety and measurement technology conducted training courses with internal spe- cialists on the latest research findings in these areas. international deut- sche telekom experts were also working to evaluate new technologies from a technical standpoint. at telekom we are convinced that mobile communications technology can be used without health concerns if specific threshold values are complied with. they are based on current findings of independent ger- man and international expert committees that continue to evaluate all relevant studies and research results. recognized expert organizations such as the world health organization (who) and the international Commission on non-ionizing radiation protection (iCnirp) have repea- tedly verified the current limit values for mobile communications over the past few years, thereby confirming the safe use of this technology. nevertheless, mobile communications continues to be a source of con- cern among the general public when it comes to possible health risks. we hope to ease these fears by providing scientifically sound, transpa- rent information. we will only be able to run a successful business and systematically drive network expansion if our technology is widely accepted by the people. that is why telekom engages in open dialog with all stakeholders involved in network expansion including communi- ties, skeptical organizations, interested residents and customers. our principles on how to handle mobile communications and health responsibly are specified in deutsche telekom‘s emf policy. emf policy. emf is short for electromagnetic fields, the physical requirements for transmitting any signals via radio. in order to ensure a responsible approach to the topic of mobile communications and health, we have set a clear framework for our related activities with our emf policy. the policy contains minimum requirements in the area of mobile communi- cations and health. with it, we are committing ourselves to more trans- parency, information, participation and financial support of indepen- dent research on mobile communications, far beyond that which is stipulated by legal requirements. our international subsidiaries are following suit: the managing boards at all of telekom‘s mobile communications subsidiaries in europe have signed the emf policy. we evaluate compliance with this policy in great depth every two to three years so that we can improve certain aspects and develop solutions in different working groups such as the emf Core team and the emf technical working group. these working groups also work to encourage group-wide exchange between group head- quarters and mobile communications subsidiaries. new initiatives are developed and experience gained in pursuing various strategies is dis-
networks mobile CommuniCationS & health transparency 97 transparenCy. telekom has specified three focal points to promote transparency in the area of mobile communications and health. these are reflected in three recommendations made in the emf policy: telekom requires its mobile subsidiaries to clarify and establish internal responsibilities and processes regarding technology, safety and health issues. they are encouraged to facilitate access to information on existing electromagnetic fields by the general public. this includes conduc- ting emf measurement campaigns and supporting national emf databases. proof of compliance with the international Commission on non-- ionizing radiation protection (iCnirp) limits for each individual mobile communications antenna must be made available upon request. on most markets on which telekom is active, legally specified limit values apply that are based on recommendations made by iCnirp for mobile communications in the frequency ranges between 100 khz and 300 ghz. all of the mobile subsidiaries‘ base stations have been built in accordance with the valid regulations of that country and comply with these recommendations. for the sake of transparency, our international subsidiaries provide information on each individual base station on request. t-ht hRvatski telekom suppoRts the ministRy of health‘s national database foR all emf souRces. the Croatian subsidiary, t-ht hrvatski telekom is actively involved in helping the Croatian ministry of health create an emf registry of all emf emission sources. in the reporting period, t-ht hrvatski telekom com- missioned a laboratory authorized by the ministry of health to take mea- surements near the company‘s base stations. the measurements covered all of the company‘s mobile communications systems. the results were submitted to the ministry in may 2012. by being published in the emf registry, t-ht hrvatski telekom is making a contribution to more transparent information on actual emf emission levels and to easing public concern. with these efforts, the company is laying the foundation for conducting open stakeholder dialog about mobile communications and health with interested residents. gReece: measuRements eveRy six minutes. Cosmote greece installed the pedion24 measuring system at a total of ten new measurement stations during the reporting period. this autono- mous monitoring system measures the electromagnetic fields at selec- ted sites around the clock and transmits measurement data to a central storage database. the information is then evaluated and immediately published online. 2,550,000 measurements (one measurement every six minutes) were conducted throughout the year and the results were published on www.pedion24.gr to provide interested citizens with seamless information about electromagnetic fields found at selected sites. to increase acceptance of the base stations by residents and decision- makers and to contribute to an objective discussion, Cosmote greece published measurement values during the reporting period and infor- med the critical public comprehensively about all additional aspects of mobile communications and health. the company also pursued dialog with customers and residents through efforts such as getting actively involved in and organizing information events. measuRement campaign in albania completed. Since 2011, the albanian subsidiary amC has been supporting an independent measurement campaign conducted by the polytechnic university of tirana with the goal of creating more transparency regar- ding actual emf emissions in the country. electromagnetic fields were measured at „sensitive“ sites such as schools, hospitals and residential areas. the scientists recorded emf levels from a total of 50 amC base stations in the two largest albanian cities. the results and the final report will be published on the amC and polytechnic university of tirana websites in 2013. extRemely loW immission levels in austRia. the austrian industry association, forum mobile Communications (fmk) commissioned tÜV austria to conduct measurements of high- frequency fields throughout austria from 2009 to 2012 tÜV austria recorded emissions caused by radio, tV, public safety radio channels, mobile communications and cordless phones at 449 locations. once the measurements had been completed in September 2012, the levels were published in a database on the industry association‘s website. the measured levels were very low. in most cases they amounted to some ten-thousandths of the levels recommended by the world health organization (who) as well as mandatory levels in austria. the highest levels were not even one thousandth of the permissible level for the 900 mhz range. by publishing the results, the industry association and t-mobile austria, as an active member, contributed significantly to objectifying the discussion revolving around mobile communications and health in austria.
networks mobile CommuniCationS & health information 98 information. another principle specified in telekom‘s emf policy involves active pro- vision of information on technology and health research and requires the mobile subsidiaries to promote communication about technology, safety, research and health. this includes educational measures and consumer information as well as raising employee awareness. industRy-Wide communication initiatives. telekom‘s international mobile communications subsidiaries are invol- ved in numerous national operator initiatives to improve public commu- nication about mobile communications and health. the operator initiati- ves act as the central go-to place for residents, the media and public and private institutions when it comes to the topic of mobile communi- cations. they work to promote transparency regarding all aspects of mobile communications, in particular health and consumer protection, network expansion and handling location conflicts. initiatives conducted by industRy association izmf. the industry initiative informationszentrum mobilfunk (izmf) conside- rably expanded its information offer during the reporting period. they uploaded interactive online content and published several brochures. they also produced several short films in 2012. the films highlight different aspects of mobile communications and health and provide answers to central consumer questions such as „what is an Sar level and how is it measured?“ in november 2012, the izmf also hosted a stakeholder workshop of the mobile Communications forum. deutsche telekom employees attended the workshop, which focused on the mobile operators‘ voluntary commitment. emf communication at the inteRnational subsidiaRies. Several international subsidiaries enhanced their consumer information on mobile communications and health during the reporting period: t-mobile Czech republic redid its online portal, providing interested parties with extensive information on base stations and health. the online information offer now includes reports on joint activities by telekom and the industry association of gSm-mobile operators, gSma, in the area of research financing. Visitors to the site can also get in touch with an emf expert by sending an e-mail to email@example.com. t-mobile austria adopted a new communication strategy in 2012. in this framework, the austrian subsidiary published internal and external brochures on using mobile communications safely, started redoing its online mobile communications and health sites and developed a guide- line for installing mobile communications systems in collaboration with forum mobile Communications (fmk). the guideline is a practical aid to help representatives from city and regional authorities make decisions and to familiarize them with the technical, physical, legal and communication-related challenges that go hand in hand with setting up mobile communications networks. the albanian subsidiary, amC, launched a campaign in 2012 to inform the public as well as political decision-makers. the company focused on general mobile communications topics as well as health concerns about mobile communications antennas and distributed 3,000 brochu- res on the topic. the bulgarian subsidiary, globul, redesigned their emf brochure in the fall of 2012. the brochure provides extensive answers to general questions regarding mobile communications and health. the company revised the content including information on the latest research findings and legal initiatives. suppoRt foR geRman communities in lte expansion. telekom in germany collaborates with its competitors when it comes to issues that are important to the general public, like providing informa- tion on electromagnetic fields (emf). the company works in these industry-wide communication initiatives with public and private partners in areas outside of institutionalized network operator associations as well, such as the informationszentrum mobilfunk (izmf). for example, deutsche telekom created various information materials like basic papers on the new lte mobile communications technology in collabo- ration with local authorities‘ associations and other network operators in 2012. telekom coordinated the choice of base station locations with the affected communities as set out in an agreement concluded with the local authorities‘ associations. telekom also helped design con- cepts for improved collaboration with the communities at its annual meeting with local authorities‘ associations in 2012. the goal of this information initiative is to inform communities about the new technology and to develop solutions for lte expansion.
networks mobile CommuniCationS & health information 99 online infoRmation on mobile communications examples of emf tRaining pRogRams at the and health. inteRnational subsidiaRies. the international subsidiaries offer training to selected employees. these employees are expected to work as facilitators and provide their colleagues, suppliers, subcontractors, customers and the general pub- lic with better, more complete information on emf, thereby helping make the discussion revolving around mobile communications and health more objective. in 2012 focal topics included national and inter- national safety standards, risk assessment procedures and how to deal with public perception of the topic. hungary‘s magyar telekom conduc- ted two training courses with a total of 40 employees in 2012, for example. Cosmote romania conducted training courses with around 50 employees from different technical and business departments. Cosmote decided to conduct this measure as a result of various omnibus surveys that were conducted in 2011 and showed that the public tended to per- ceive emf topics in a negative light. globul, our bulgarian subsidiary, also provided training to subcontrac- tors who had been commissioned to acquire sites for mobile communi- cations base stations as well as construct and equip them. in november and december 2012, these subcontractors learned how to effectively organize communication on emf to the public. many international mobile subsidiaries provide informative material on mobile communications and health online in the local language. online information on mobile communications and health provided by mobile subsidiaries. deutsche telekom telekom deutschland sales portal t-mobile austria t-mobile netherlands t-ht hrvatski telekom Cosmote greece magyar telekom Cosmote romania amC t-mobile macedonia www.telekom.com www.telekom.de/sar-werte www.t-mobile.at www.t-mobile.nl www.t.ht.hr www.cosmote.gr www.telekom.hu www.emf-portal.hu www.cosmote.ro www.amc.al www.t-mobile.com.mk infoRmation foR useRs of mobile communications continuously updated. in germany, telekom is committed to providing residents with extensive information on all questions revolving around the topic of mobile com- munications and health. among other tools, the company uses the flyer entitled „information on using your cell phone“ for this purpose. Consu- mers can also find out about the Sar levels of all of the end devices sold by telekom in germany on its website. the levels of the devices lis- ted there are considerably below the legal limit of two watts per kilo- gram of body weight. we also offer interested consumers an up-to-date Sar info service as well as a variety of background information on tech- nological and safety aspects at our shops and in different magazines, like „telekom trend“ magazine. tRaining and Raising employee and contRactoR aWaReness. telekom employees are important „ambassadors“ to the public. they help increase the knowledge of mobile communications and health among the population and by doing so, enhance the acceptance of mobile communications technology. training programs were conducted at several international subsidiaries during the reporting period.
networks mobile CommuniCationS & health participation 100 partiCipation. active involvement of all stakeholders early on is the basis for deutsche telekom being able to successfully continue its network expansion. for this purpose, we actively seek dialog with stakeholders such as commu- nities, residents and people who live near mobile base stations as well as skeptical organizations and ngos. their constructive criticism and comments provide us with valuable information that we take into consi- deration during the planning phase. that is why the principle of partici- pation is a permanent feature in our emf policy. based on this principle of participation, we require our international subsidiaries to work closely with communities and to help them with their expertise when it comes to answering the questions of residents regarding network development and site selection for mobile base sta- tions. we also encourage them to try to find solutions that are accepta- ble to all parties when looking for a site. assigning local contacts to these projects as a liaison with those involved at the regional level facili- tates this task and makes it possible to resolve conflicts or answer que- stions quickly and easily on the basis of expert knowledge. our international subsidiaries have been conducting appropriate measures to encourage participation for several years. these activities are based in particular on voluntary commitments by mobile communi- cations providers in germany as well as an agreement with local autho- rities‘ associations. telekom in germany signed both in 2001. voluntaRy commitment of mobile pRovideRs in geRmany. together with the other mobile communications providers in germany, telekom deutschland made a voluntarily commitment to the german federal government to conduct measures to gain the public‘s trust when expanding the mobile networks. the focus is on the following activities: improving communication and involving stakeholders in site selection Consumer protection and information providing financial backing for independent research helping create an emf database, emf monitoring, emf measurement programs under this voluntary commitment, telekom deutschland and its compe- titors announced in 2012 that they would contribute a total of eur 600,000 to the german federal government‘s project for emf risk communication over the following two years. the money will finance projects such as the knowledge management and risk communication project, which was launched in 2012. the german federal office for radiation protection (bfS) is responsible for coordination and expert assessment. the goal is to provide people with even more comprehen- sive, targeted information about the possible impact of mobile commu- nications technology on humans and the environment. independent auditors conduct assessments on implementation of the voluntary measures. the results of the 2011 expert report drafted by these independent auditors were published in late 2012. as in previous years, the expert report confirms that telekom in germany is realizing its voluntary commitments in a sustainable way. despite the intensive expansion of the lte network, more than two-thirds of the communities surveyed said that there were no conflicts during the period under review. however, there is room for improvement when it comes to providing information to small communities. the network operators responded to these results by announcing that they would review and amend their processes. dialog on netWoRk set-up and expansion. when introducing new technology, it is important to inform residents about the technology being used at an early stage. our experience with setting up networks shows that engaging in dialog directly with commu- nities and the people contributes considerably to how well our techno- logy is accepted and to easing the public‘s concerns. in 2012 we focused on measures to improve communication and the distribution of information in order to more effectively inform small communities that had previously complained about a lack of information on base station sites provided by network operators. our measures included setting up mediation centers to solve conflicts that could arise during network expansion. telekom also appoints regional contact persons for mobile communications and health to help solve conflicts on site in direct con- tact to community representatives. deutsche telekom also promoted dialog with communities by actively participating in the lte measurement program, which was completed in late 2012 (in collaboration with izmf). together with the other german mobile network providers and the local authorities‘ associations (german association of Cities, german County association and german association of towns and municipalities), deutsche telekom also signed the „agreement on sharing information and community participation in mobile communications network expan- sion activities“ as early as 2001. its objective is to encourage cities and communities to participate in the network expansion process. mobile communications companies and communities work together in coope- rative, constructive dialog to come up with amicable solutions for new sites for mobile base stations. as the 2011 annual expert report on com- pliance with the voluntary commitment of mobile communications provi- ders in germany shows, the flow of information between communities and network providers has permanently improved thanks to the emplo- yed measures.
networks mobile CommuniCationS & health participation 101 paRticipating in expeRt discussions on emf. telekom participates in various dialogs at an expert level on the topic of mobile communications and health including the meetings of the electromagnetic fields round table (rtemf). experts on health, the environment and consumer protection as well as scientists were invited to attend the rtemf meetings held in may and november 2012. telekom experts also attended the meetings and discussed current safety, research and technology-related mobile communications issues as well as additional ways to get stakeholders involved. the rtemf is a key instrument for telekom deutschland when it comes to open dialog with all stakeholders involved in the public emf discussion. in december 2012, experts from the international subsidiary, globul, attended the annual meeting of the bulgarian national program Committee of the world health organization in ognyanovo. in line with the meeting‘s topic, „recent tendencies in legislation on emf exposure in the work environment and in urban territories,“ participants discussed the need for regulation to protect people‘s health from electromagnetic field exposure.
networks mobile CommuniCationS & health research & partnership 102 researCh & partnership. the effects of electromagnetic fields on human beings have been researched thoroughly over the last few decades. all recognized expert committees confirm on the basis of sound research results that current limit values guarantee that mobile communications can be used safely. however, in light of new technological developments, it is important that we continue to update the information available on possible effects of mobile communications. that is why supporting independent scientific research and partnerships is a key element in our emf policy. this is reflected by two recommendations for interacting with the research and scientific community: as a leading mobile network provider, telekom supports indepen- dent scientific research on possible public health impacts of emf and contributes to independent research programs. maximum levels for electromagnetic fields need to be defined on the basis of sound research results and undergo constant review. study on Risk assessment at the emf science foRum. the electromagnetic fields Science forum (wf-emf) focused its varied activities in 2012 on „further development of evidence-based approa- ches and tools to communicate risk regarding mobile communications and health.“ an important focal point in 2012 for the emf:Science forum was to work on advancing concepts that can be used to communicate scienti- fic emf:risk assessments to the population in a way that is easily under- standable. the project included testing the communicative effectiven- ess and comprehensibility of different evaluation systems from a layman‘s perspective. the emf:Science forum used the results to deve- lop tools and recommendations to improve communication of current risk assessments. the process included several network meetings with experts from the areas of mobile communications research, risk com- munication and risk assessment. the meetings were open to partici- pants from the worlds of science, politics, ngos, citizen initiatives and business. the plan is to test the suggestions, tools and approaches for improving the communication of risk assessments in real-life situations and further improve them in 2013. suppoRting independent ReseaRch. promoting independent research projects is part of the voluntary com- mitment made to the german federal government by german network providers. deutsche telekom promotes a variety of research programs and projects together with the other german network providers. from 2008 to 2012 telekom supported projects conducted by the german federal government‘s environmental research plan in the area of mobile communications and health. from 2012 to 2014, telekom will be spon- soring a project on risk communication by the german federal ministry for the environment. the results of all of the completed projects the company has supported so far have contributed significantly to answe- ring open questions about mobile communications and health and to further strengthening the protection concept for mobile communica- tions. environmental research plan projects. together with the other german network providers, telekom deutsch- land supports projects on mobile communications and health conduc- ted by the german federal government‘s environmental research plan. Collectively, the network providers contributed eur 1 million. from 2008 to 2012, several projects were realized by renowned groups of researchers within the scope of the environmental research plan. the research projects focused on possible long-term effects of using mobile communications technology and the possibly higher sensitivity of child- ren to emfs generated by mobile communications. descriptions of the projects and their objectives as well as interim and final reports are available online. risk communication projects. deutsche telekom will be collaborating with other network providers until 2014 to support the german federal government‘s risk communi- cation project in the mobile communications and health area with a total of eur 600,000. co-financing research database. deutsche telekom is also providing financial support for operation of the database run by the research Center for bioelectromagnetic inter- action (femu) at the rwth aachen university. the database already contains more than 16,000 scientific papers and articles on the topic. support for long-term scientific study. in 2012, the ludwig-maximilians-universität (lmu) in munich continued its research on possible connections between frequent use of cell pho- nes and tumors in young people as part of the university‘s mobikids study. telekom deutschland provided the researchers with all the data they needed on how often study participants used their phones in com- pliance with data privacy regulations. this lets researchers analyze potential diseases in relation to actual cell phone use, forms the basis for an improved research methodology and leads to more reliable results. researchers from 16 countries are participating in the study by
networks mobile CommuniCationS & health research & partnership 103 collecting medical data and data on cell-phone users in their countries. the study will be completed by 2014 and will provide valuable informa- tion on possible effects that using mobile communications technology may have on young people‘s health. ReseaRching neW mobile communications technologies. telekom and the other network providers in germany supported the german federal office for radiation protection (bfS) in a study on determining the general population‘s exposure levels as a result of new mobile communications technology. the study was launched in august 2011 and carried out by the institute for mobile and Satellite Communication technology (imSt) and em-institut gmbh. the goal of the project was to add to available information on the electromagnetic fields emitted by new mobile communications technology, such as lte. telekom provided all of the necessary information on network configu- ration to the project participants. the study was completed in late 2012. there is an interim report available online. the german federal office for radiation protection (bfS) will publish the final report in 2013. in 2012, our hungarian subsidiary, magyar telekom continued to work on the emf:measurement program launched in collaboration with the hungarian national research institute for radiobiology and radiohygi- ene (oSSki). magyar telekom provided three lte transmitters to oSSki for a period of six weeks so that they could research the emissions and pollution levels of lte technology.
networks enVironmentally friendly network infraStruCture 104 enVironmentally friendly network infrastruCture. State-of-the-art information and communications technology (iCt) incre- asingly helps replace energy and resource-intensive products and ser- vices with more efficient ones. at the same time, however, the amount of data that needs to be stored and transported is growing due to ever more sophisticated applications. according to the Smarter 2020 study published by the global e-Sustainability initiative (geSi), the iCt indus- try was responsible for around two percent of global emissions in 2011, the equivalent of around 910 megatons of Co . Compared to the earlier study, Smart 2020, the current publication shows a flatter curve in increasing emissions and a higher potential to reduce iCt emissions thanks to technological advancements. as part of the „low carbon soci- ety“ Cr action area we are planning to consistently use these advances in the interest of climate protection, to increase not only the perfor- mance of networks and data centers but also their energy efficiency. 2 loW poWeR mode on the Road to a gReen dsl. when applying the Code of Conduct on energy Consumption of broad- band equipment (CoCbb), telekom identified opportunities to optimize the energy requirements for its adSl2+ network. before then, all active connections were always on, i.e., in full power mode (l0 mode). we will be able to save a significant amount of energy by switching the connec- tions to the „enhanced l2 mode while using data services with lower bandwidth.“ the technical requirements for this are next-generation modems with optimized adSl2+ function. we initiated a feasibility study on the enhanced l2 mode in January 2013. the study included a field test under real-life conditions. the results are expected by mid- 2014. outdated systems that are no longer needed are systematically swit- ched off, replaced and recycled at telekom in germany. we do our best to employ energy-efficient, environmentally friendly technology when procuring new systems. we also support and motivate our customers to save energy and reduce Co solutions. emissions by offering efficient iCt 2 code of conduct on eneRgy consumption of bRoadband equipment. by signing the european Code of Conduct on energy Consumption of broadband equipment (CoCbb), deutsche telekom has pledged to optimize the energy requirements of its broadband networks. in coope- ration with its suppliers, telekom makes sure that the new systems it introduces do not exceed the maximum levels specified in the CoCbb. because the code is continually being adjusted in line with new techno- logies and findings, we continuously have to comply with new specifica- tions. we integrated the latest version of the CoCbb, the fourth version of the code, during the reporting period into the environmental specifi- cations of our procurement policies. these included technical specifica- tions for network technology but also for our entertain boxes. the enter- tain media receivers that we brought out in 2012 comply with the CoCbb‘s current specifications on energy consumption. we are cur- rently preparing for version 5 of the CoCbb to go into effect. we conduct annual surveys at telekom‘s technical areas for fixed-line and mobile communications in germany to help us analyze compliance with the technical specifications set forth in the CoCbb. the results are summarized in an annual report, which we then send to the regulatory authority. our approach and process is also reviewed in an audit.
networks enVironmentally friendly network infraStruCture network upgrading 105 network upgrading. generating energy is still the main cause of climate change. this makes it all the more important to increase energy efficiency in all areas where large amounts of energy are required, e.g., to operate iCt networks, if a company is really concerned about protecting our climate. that‘s why using energy efficiently is one of telekom‘s key goals, not only when planning new networks, but also when optimizing existing ones. in this context, higher performance and less energy consumption go hand-in- hand with reducing our carbon footprint. at the same time, replacing old systems with new ones poses an unusual challenge for telekom‘s engi- neers. Replacing outdated 2g netWoRk technology. the largest system technology swap in the history of mobile communi- cations at deutsche telekom started in 2011. old 2g/gSm technology is scheduled to be completely upgraded to the latest technology by october 2013. the plan is to upgrade the technology at a total of 12,000 mobile communications sites in germany and replace more than half of the outdated 2g/gSm systems. we are also planning to reduce the number of controller sites for base stations from 256 to 13 as part of the swap program, which will drastically reduce energy consumption. we had upgraded 7,176 base stations and put 195 controllers out of service by the end of 2012. this included a variety of activities from switching over all stations to synchronized processes in the fiber-optic network to issuing permits for access to the equipment and swapping the systems at the antenna sites using cranes. the upgrading program that we began in January 2013 as a subproject of our swap program involved implementation of ethernet connections for 2g:sites, which also was a technologically challenging task and required extensive coordination. we are planning to install ethernet con- nections at around 8,000 sites. the single radio access network (Single ran) technology makes it possible to operating different mobile com- munications standards in a single switching unit, further reducing the need for hardware and energy consumption. with these measures, we are laying the foundation for a future-proof technology platform which is not only suitable for lte expansion, but will also ensure that the same hardware can be used for all mobile com- munication generations (2g , 3g:and 4g/lte) in the long term. this is expected to reduce future investments as well as operating costs and will also make the 2g:network technology ip-compatible. best poWeR pRoject. the high-speed VdSl:network is based on fiber-optic cables. individual network components are bundled in multi-functional cabinets, recogniz- able as the gray boxes found throughout our cities. in order to further increase the energy efficiency of the systems contained in the cabinets and to minimize performance loss, we initiated the best power project in 2011. the focal point of the pilot project is selecting the most effective net- work equipment and increasing the energy efficiency of our systems. we plan to reduce our Co emissions as well as our operating costs thanks to the reductions in energy consumption which the project is expected to generate. development of the new network equipment as well as testing and acceptance by our laboratories were completed in 2012. 2 reliable results will not be available until after a field test at the end og 2013, because a subproject of best power is being conducted in con- nection with the deSi project. poWeR off task foRce. telekom deutschland‘s power off task force analyzes which residual modules can be removed from the network with a reasonable effort and organizes the systematic dismantling of outdated systems. in 2012 we were able to shut down technical systems with an overall wattage of 4.5 mw due to measures implemented by the power off task force. the energy savings realized as a result are the equivalent of 17,020 metric tons of Co per year. 2 we also launched the retire project in 2012 to ensure uninterrupted operations during transition from the old, fixed-line technology to the all-ip network. the project also uses opportunities to reduce energy consumption by shutting down outdated equipment. the power off task force will become part of the retire project in 2013. retire had already realized additional dismantling potential of 1 mw by the end of 2012. another 3.67 mw can be achieved in 2013. by dismantling systems that we no longer need early on, we can consi- derably reduce energy consumption. dismantling activities in 2012 resulted in annual savings of around 40 gwh in electrical energy con- sumption and costs amounting to eur 11 million for electricity, cooling and uninterrupted power supply for telekom. in addition, the measures freed up one-time investment resources in areas such as cooling and uninterrupted power supply totaling at around eur 9 million. these will be used to accelerate the installation of the new networks.
networks enVironmentally friendly network infraStruCture Climate technology & energy use 106 Climate teChnology & energy use. data centers produce a lot of heat and need to be cooled. Some 40 per- cent of the energy used by data centers is used for cooling. energy-effi- cient climate technology offers considerable energy savings potential through increased use of fresh-air cooling instead of compressor coo- ling, which uses a lot of electricity. within the scope of our Cr action area „low carbon society,“ deutsche telekom, and particularly t-Sys- tems, conducts intensive research and development in order to optimize data center infrastructures in consideration of financial and ecological aspects. the group subsidiary power and air Condition Solution management gmbh & Co. kg (paSm) is our partner in many of these projects. objectives for 2013. paSm is planning to conduct a number of energy optimization projects in 2013. for example, the company will adjust and optimize its energy management structures by assigning new responsibilities, including its service departments, and through more effective innovation manage- ment as part of its collaboration with the service provider, Strabag. paSm is also planning to optimize existing split-air conditioning systems and to switch some of these over to fresh-air cooling systems. Split-air conditioning systems are comprised of at least two units, an external and an internal unit, that use the temperature difference between the air inside and outside the building to save energy. heat poWeR business pRoject. in december 2012, paSm (power and air Condition Solution manage- ment gmbh) launched the heat power business innovation project. in this project, we are operating ten mini-cogeneration plants with capaci- ties of between 4.5 and 50 kw at network nodes being used by different parties. the cogeneration plants are highly efficient and environmen- tally friendly. for example, the waste heat they produce is used to heat the building. that makes it possible to use more than 80 percent of the total primary energy employed. in 2012, these local mini-cogenerators generated around 1,500 mwh of electricity and around 2,500 mwh of heat. Compared to the energy mix available in the power grid, that means a reduction in Co2 emissions of around 200 metric tons for 2012. in order to precisely determine the consumption and emissions values of mobile providers that use our systems we analyzed all of the network nodes used by them in terms of the employed cogeneration plants as part of the project in 2012. we are using the results from the pilot plants to plan and build more than ten additional cogeneration plants. other energy-efficiency programs. in 2012, paSm introduced other programs to increase energy efficiency in facility management. these include upgrading inefficient air conditio- ning in telekom buildings. paSm also set up an additional six cogenera- tion plants with an output of between 50 and 250 kw. as part of an „integral planning“ approach, paSm made an agreement with the ser- vice provider, Strabag-pfS, in 2012 for systematic energy manage- ment processes to provide access to innovative, efficient power solu- tions in complex new building projects. paSm itself was certified by the tÜV technical services company in may 2012 under the iSo 50001 standard for energy-efficient management systems. paSm‘s plans also include introducing load management systems to reduce peak loads with particularly high energy demands from consu- mers and businesses. these peak loads put a strain on power grids and lead to price increases on the deregulated energy market. our goal is to use low-priced electricity in phases of low demand instead of purchasing power in peak-load phases when costs are high. that calls for high-performing energy storage units as well as technology to con- trol energy demand. in collaboration with the energy provider, Vattenfall, paSm is planning to integrate effective storage units into virtual power plants. with these efforts we are contributing significantly to stabilizing future power grids and reducing our procurement costs as well. kpi RevieW coopeRation With stRabag. paSm has been using different kpis to measure and evaluate the energy efficiency of properties since 2005. the company thoroughly analyzed these kpis in 2012 with the help of an external specialist agency and Strabag. the analyses are scheduled to continue beyond february 2013. the goal is to increase the level of differentiation in the kpi system. all telekom buildings were divided up into seven different groups, and kpis and related processes were then aligned for each group. the top 25 properties, for example, comprise all properties that consume more than 10 gwh of electricity per year. we closely monitor the peak loads of these properties so that we can take suitable counter- measures. the concept, which was developed by the partners, was approved by the paSm and Strabag-pfS managing boards. the pro- cesses will be made even more efficient in 2013, particularly with the collaboration of Strabag service units. paSm also introduced integral planning with energy managers and ser- vice agents as well as building owners and property developers in 2012 as an additional measure to increase efficiency. paSm was able to
networks enVironmentally friendly network infraStruCture Climate technology & energy use 107 achieve considerable improvements in five pilot tests. the next step will be to stabilize the processes and incorporate them into corporate struc- tures. an integral concept is currently being tested at a telekom location in munich. for the load-adaptive operation of its own workstations. results showed that energy consumption can be reduced by up to 23 percent when it systems, including pCs, notebooks and phones, are only switched on during actual working hours and automatically switched to standby mode or completely shut off during lunch break. desi pRoject. Since late 2011, paSm has been testing solutions for the smart energy systems of the future in collaboration with telekom innovation laborato- ries (t-labs ) and telekom deutschland as part of the deSi project on end-to-end, energy-sensitive iCt. the purpose of the project is to deve- lop a system for load adaptive control and to test concepts for genera- ting and storing energy. this is one of the key foundations for smart grids. different ways to manage peak loads and optimize the purchase of electricity are also being tested. in 2012, the project partners set up a remote control connection to con- trol the storage behavior of an uninterrupted power supply (upS) system as a demonstration. at the same time, they laid the technical foundation for a comprehensive control system. the purpose of the system is to fle- xibly control data storage and provision of the required electricity in line with data volumes to be stored. electricity is either taken from the supply network or from our own storage system, depending on availability and price. the project team then began developing the necessary control software. they also continued and completed studies on the required hardware. the lola pRoject. we are also working on optimizing the telecommunications network within the scope of the lola project (load-adaptive networks & lans), as well as in the deSi project. the deSi project focuses on smart con- cepts for supplying and storing power in a demand-oriented, cost-effici- ent way. the lola project, on the other hand, focuses on solutions for flexible, load-adaptive usage models for the operation of iCt resources that are used for customer and access networks. many of today‘s iCt devices and systems require a consistent power supply as long as they are switched on, regardless of what they are actually being used for. in the lola project, participants identified and studied usage case examples in which energy consumption can be adjusted to fit actual use both for operator networks and customer networks. the lola pro- ject ran from october 2010 to december 2012. the advancement and pilot phase of the lola approach of load-adaptive network operation is scheduled to be continued in another project in 2013 as well. we were able to save a significant amount of energy in the operation of corporate and broadband access networks in 2012. a pilot project, which was completed in march 2012, is the perfect example. within the scope of the project, deutsche telekom developed control mechanisms in 2012, telekom also developed and tested an iCt component control system for home networks. the tests showed that energy savings of 20 to 25 percent were feasible depending on usage behavior and com- munications service type. analyses on certain operator network seg- ments even showed savings potential of up to 30 percent. Access network. telekom has been using the g-pon (gigabit-capable passive optical networks) technology since 2009 for ftth expansion with fiber-optic lines all the way to the users‘ home. by using g-pon technology it is now possible to use the high-speed potential of fiber optic technology to its fullest: up to 2.5 gbit/s of download speed and up to 1 gbit/s of upload speed have now become feasible. in the spirit of the lola basic concept, we are working on a solution that enables us to reduce g-pon technology energy consumption by standardizing the device at the end of the fiber-optic network on the customer‘s premises. end-to-end network control. another goal of the lola project is to establish end-to-end-network control. this will enable us to save even more energy in addition to the already existing load-adaptive control technology, as it was used as an island solution for dSl and g-pon networks, for example. in order to achieve this, we need to develop solutions that enable load-adaptive operation and high-quality data services across networks at the same time. we have been working in collaboration with system manufacturers since 2010 to develop the technology and to standardize load-adaptive, cross-network systems internationally in order to create energy-efficient global market products that anyone can purchase. comgReen: load-adaptive optimization of Radio access netWoRks. the energy consumption in radio access networks is steadily increa- sing. this is due to the network expansion and also to the increasing capacity demands of mobile users. telekom operates tens of thousands of base stations and wi-fi hotspots in germany, which have a total annual energy consumption in the three-digit gigawatt hours range. until now, these networks were operated regardless of their usage; the same amount of energy has been used no matter whether the load is high or low.
networks enVironmentally friendly network infraStruCture Climate technology & energy use 108 with the Comgreen project, telekom wants to develop a way of adjus- ting mobile communications network performance to demand. every telecommunications network user should be able to use the transmis- sion capacity they actually need in any location instead of being provi- ded with maximum transmission capacity, as is current practice. to achieve this, the project team is developing a model for self-organized adjustment of network parameters such as data rates and transmitting power. the model takes the number of logged in users and their current capacity needs as well as other data into consideration and makes it possible to switch available network resources on and off accordingly, depending on capacity requirements. initial results from the project, which were presented in 2012, show that load-adaptive, intelligent network control holds a saving potential of up to 30 percent when it comes to energy consumption and Co emissi- ons. following this analysis, the project team is planning to develop drafts for load-adaptive control standards and present these to internati- onal standardization committees. the objective is to be able to integrate the concepts and mechanisms developed in the project into operative network nodes in the medium term with the help of system manufactur- ers. the team began preparing a feasibility study to implement selected mechanisms in 2012. 2 pRogRam foR hydRogen and fuel cell technology in geRmany. we are currently operating five fuel cell systems. these were tested for suitability under the german federal government‘s national hydrogen and fuel Cell technology innovation program. we focused in particular on using fuel cells as a backup system and to manage peak loads and on identifying ways to incorporate the fuel cells into a virtual power plant. we were able to prove the systems‘ suitability for daily operation at all five pilot sites. paSm closed out the program with a workshop in 2012. the findings show that the technology used can be employed efficiently at sites with backup times of more than 24 hours. paSm continues to participate in Clean power net (Cpn) together with manufacturers and users of fuel cell technologies under the patronage of the national hydrogen and fuel Cell technology organization (now) in order to share our experi- ences with these systems with all market partners.
networks enVironmentally friendly network infraStruCture green data centers 109 green data Centers. energy efficiency is the most important instrument to effectively improve the carbon footprint of data centers. telekom takes an integrated approach to improving the energy efficiency of its data centers within the scope of its „low carbon society“ Cr action area. this approach includes all aspects ranging from cooling and energy provision to opti- mized utilization of hardware capacities. during the second phase, the project partners also researched how to save energy by changing the settings of the servers‘ basic operating sys- tem (bioS). Significant savings potential was realized especially as a result of these optimization efforts during project operation at dataCen- ter 2020. Since then, the findings have been discussed with server manufacturers and applied to the production process. datacenteR 2020. t-Systems has been operating the dataCenter 2020 test data center at euro-industriepark in munich since September 2009 as part of its colla- boration with intel. at dataCenter 2020, we are testing solutions that enable more energy and cost-efficient data center operation to benefit the environment and the climate. optimizing cooling systems. phase one of the collaboration project includes testing two different architectural measures for cooling data centers efficiently, i.e. cold aisle and hot aisle containment. one approach involves separating cold areas from the rest of the room while the other involves separating the warm areas to prevent air flows from mixing. telekom has been using cold aisle containment to cool its all-ip platform since 2011. in 2012, we conducted tests on entire data centers to make the cooling process even more efficient. during the tests, we compared both approaches and looked for optimization potential. the results showed that both methods were similar in terms of energy efficiency. however, they also showed that there are different advantages and disadvantages in using the two methods. that is why the decision to use either cold or hot aisle containment depends on the relevant requirements and actual operating conditions at each data center. the advantage of using cold aisle containment is that it can be employed without making major changes to the server room. the disadvantage, however, is that emplo- yees have to walk into a room with a temperature of around 45°C. this is not the case with hot aisle containment, which eliminates „hot spots“ without heating up the rest of the room. we factor in these findings when introducing the cooling methods at other data centers. increasing the energy efficiency of hardware. in early 2012, a second project phase was launched in addition to coo- ling technologyoptimization . during this phase, the partners studied ways to increase the energy efficiency of it hardware. they used extra- polations to find out how much computing capacity could be achieved per area unit with new processor technology and made forecasts with respect to the energy demands of future processor generations. t-Sys- tems will use these forecasts and estimates for data center upgrading projects and new data centers in the future. implementing project results in real-life operations. t-Systems is applying its experiences from the dataCenter 2020 project in its roll-out dC2020 project to optimize operation and maintenance of existing data centers. t-Systems‘ largest data center at euro industrie- park (eip) in munich is playing a pioneering role in these efforts. the start phase, for which t-Systems assigned around eur 1.5 million, began in September 2012 and is scheduled to be completed in march 2013. t-Systems is also using the results from dataCenter 2020 to plan and construct new data centers in locations such as magdeburg/biere in Saxony-anhalt. project topics for 2013. the project participants defined additional focal areas for 2013. these include testing new ways to provide energy and cooling to the data cen- ters. one important topic in this context will be providing cooling for liquid-cooled servers and processors. with the dataCenter 2020 project, t-Systems is getting ready for rapidly increasing performance demands on iCt systems, particularly in the area of process security. for example, protecting the basic infrastructure required for iCt services, particularly networks, servers and storage against failure holds high potential for the future. t-Systems intends to rely on ongoing standardization of system environments in this respect. data centeR optimization pRoject. we launched the data Center optimization project in collaboration with paSm in 2011 to optimize the infrastructure of our data centers in ger- many. it specified around 16 measures for each data center to reduce energy costs and was tested at 15 pilot locations. the project was closed in late 2012 but the individual measures that were begun under the project are being continued. we evaluated technical feasibility at three project sites to finalize the data Center optimization project. our assessment showed that the indi- cator of energy efficiency, the pue value, improved on average for all data centers.
networks enVironmentally friendly network infraStruCture green data centers 110 following the project, we are planning the progressive closure of data centers whose energy efficiency cannot be improved and the transfer of their it load to data centers with optimized energy requirements, star- ting from 2013. paRticipating in the euRopean code of conduct on data centeRs. t-Systems is participating in an eu Commission initiative with the aim of cost-efficiently reducing data center energy consumption and encoura- ging operators to share best practices. the focus of the initiative is the european Code of Conduct on data Centers. the Commission publis- hed the code in late 2008 in response to the increasing need for energy on the part of data centers. Companies can become supporters of the code or, if they operate their own data centers, participating members of the code. in order to participate, a company needs to report extensively on the servers it operates and be in compliance with certain, sustaina- ble policies. nine t-Systems data centers successfully became mem- bers in late march 2013. the applications of two additional data centers are currently being processed.
customers 111 Customers we want to help create a beneficial digital society with innovative cli- mate and environmentally friendly iCt solutions. with the goal of beco- ming the market leader in connected life and work, we focus our work around establishing long-term customer relationships. we offer our customers attractive products and services that meet their needs and help them make sustainable, green consumer choices. our cloud com- puting offer for consumers is an important innovation in this area.
customers baSiCS for produCt deVelopment & produCt deSign 112 basiCs for produCt deVelopment & produCt design. responsible consumer decisions can make a big difference when it comes to protecting the climate and the environment. according to the german federal environment agency, private households are responsi- ble for generating around 40 percent of greenhouse gas emissions in germany. telekom wants to make it easier for its customers to engage in sustainable consumption by structuring its portfolio accordingly within the scope of our „low carbon society“ Cr action area. sustainable pRoduct poRtfolio pRogRam completed successfully. we work to help our customers lead a sustainable lifestyle with attrac- tive products of high ethical and environmental quality. we also want to increase customer satisfaction and minimize the social and environmen- tal impact of our products. our Sustainable product portfolio program, which we completed successfully at the end of 2012, supported this goal. during the reporting period, we made progress in the following areas as part of the program: conseRving ResouRces in end-device packaging. after revising our end-device packaging policy in 2011, we introduced various measures to help us considerably cut back on resources. one example of this is the international Sim packaging project, which we anticipate will lead to savings in materials and also in costs worth milli- ons of euros. we also began using environmentally friendly polyethylene in our telekom Shop bags as part of our bio bags project. up to 80 per- cent of the material is comprised of renewable resources (sugarcane). the new material is better for the climate because it can be produced with significantly lower Co emissions than the paper bags we used to use at our stores. we also plan to introduce a mini-bag for smaller pro- ducts in 2013. 2 we are planning to revise our packaging policy in June 2013, including further improvements in terms of material characteristics and consump- tion as well as the ink we use in printing. we are also planning to replace the plastic components of our latest mr 303 media receiver with recycled materials. magyaR telekom: Recycled packaging in shops we defined product sustainability criteria and online stoRes. we developed a process for evaluating and critically reviewing products based on sustainability criteria we created a Sustainable product performance indicator and Sustainable user experience indicator a labeling system for sustainable product features was developed, tested and prepared ready for implementation within the scope of telekom‘s new packaging policy, which was approved in 2011 policies foR sustainable pRoduct design. the deutsche telekom design principles have been mandatory for pro- duct development at telekom in line with the group strategy since the end 2009. the primary principle, „act responsibly— think globally“, was derived from the Cr strategy. in 2012, telekom incorporated sustainabi- lity requirements into its design principles, making them a permanent feature in product design-related invitations to bid. one example of this is our inclusion of ecological criteria in the product design of our new entertain boxes. thanks to the requirements we place on our suppliers, any harmful substances contained in the materials used in the new boxes are below legally acceptable levels. the new boxes exclusively feature sustainable plastic and low-pollutant varnishes. we are planning to incorporate additional sustainability standards in the product innova- tion area from 2013. magyar telekom now uses recycled packaging materials for all delive- ries of products ordered online and replaced plastic bags with recycled paper bags for products sold in its t-Shops, where up to 800,000 bags per year were given to customers in t-Shops in the past. both moves sig- nificantly reduce the impact of the waste generated on the environment. sustainable seRvices foR customeRs. deutsche telekom helps its customers conserve natural resources while reducing costs at the same time, e.g., by switching from paper mail to e-mails and virtualizing conferences with telepresence systems that make business trips unnecessary. at t-Systems, telekom‘s corporate customer arm, sustainability and cor- porate responsibility comprise one of five core beliefs that t-Systems put together in 2010 on the basis of mega trends in the worlds of soci- ety and business. in accordance with these principles, the company offers a range of iCt solutions for the healthcare sector. other examples include a telematics application for logistics service providers and fleet operators as well as our de-mail service.
customers baSiCS for produCt deVelopment & produCt deSign 113 „telekom expeRt ciRcle 50+“ customeR foRum. in 2012, the telekom expert circle 50+ forum once again critically revie- wed products developed by telekom for people over the age of 50. in cooperation with bagSo, the german association of organizations for seniors, the experts conducted various product tests to assess accep- tance and user guidance of our entertain premium product and a proto- type of the successor to the Sinus a 201 phone. the new phone is desi- gned to give users all of the advantages of a digital telephone in a model that is very easy to use. the expert circle also helps us improve our service for older people.
customers Climate and enVironmentally friendly produCtS & SerViCeS 114 Climate and enVironmentally friendly produCts & serViCes. 2 deutsche telekom is helping millions of consumers and business custo- mers effectively lower their energy consumption and reduce Co emissi- ons within the scope of our „low carbon society“ Cr action area with our growing offer of green products and innovative iCt solutions. the com- pany is researching innovative solutions for the energy, automotive and healthcare industries. it is also working to improve transparency regar- ding the Co emissions generated throughout the entire life cycle of iCt products for its customers. we are working to create a method for calcu- lating the carbon footprint of iCt products and services in collaboration with partners from the world of industry as well as ngos. 2 platfoRm foR climate-compatible consumption. the online platform, Climate Compatible Consumption in germany, which telekom helped launch in 2011, provides companies from all industries in germany and abroad with extensive information and recommendations on reducing emissions along the entire added-value chain. the platform was designed as a dialog platform. during the reporting period, activities focused on developing calculation methods that can be used to include the use of green energy when using iCt pro- ducts and services into the the carbon footprint. this would have a posi- tive effect on the carbon footprint results. in pursuing this goal, deut- sche telekom was involved in several activities including participation in the „green energy balance in Carbon and environmental footprinting“ dialog forum. platform activities also focused on consolidating findings on the critical hot spots in different product categories, which resulted from product carbon footprinting (pCf) analyses. knowledge of these hot spots would then also be useful in decision-making processes, e.g., procure- ment, doing away with the need to prepare extensive pCf analyses. plans for 2013 particularly include activities relating to the new eu gui- deline for calculating the product environmental footprint and to the development and/or review of the product category rules for the iCt industry. the aim here is to develop methods to reduce Co production based on our own experiences so that we can also help other industries and business sectors cut back on their Co emissions. 2 2 pRoduct caRbon footpRint calculation foR enteRtain completed. in 2012, telekom completed its calculation of the carbon footprint for our triple-play entertain offer within the scope of the product Carbon footprint project. we started the calculation process in 2011. the iSo 14040/44 life cycle standard, the greenhouse gas protocol and the international telecommunication union (itu) guidelines are being taken into account in this process. in terms of the service itself and the related components, entertain produces around 550 kg of Co emissions a 2 year. this value also includes the average emissions generated when the customer uses their television. although we do not have a direct impact on these emissions, they represent a large portion of entertain‘s carbon footprint. we developed a new generation of the entertain media receiver in oder to reduce the emissions for which we are responsible. the device will be available as of 2013 and supports the power-down mode, which drastically reduces the amount of energy the device con- sumes. in standby mode, the receiver also falls below the legally permit- ted maximum energy consumption levels by 10 to 20 percent. of course, the product also complies with the energy specifications contai- ned in the Code of Conduct on energy Consumption of broadband equipment. we published an internal instruction sheet on calculated product emis- sions at the end of 2012. it provides orientation in many matters, such as how emissions from the telecommunications network are allocated to the different services, and also serves as a basis for calculating the pro- duct carbon footprint (pCf). our goal is to increase internal competence when it comes to comprehensively assessing the sustainability of our product portfolio. with these efforts, telekom is in line with current trends in european regulation policies that also tend toward compre- hensive reporting on the environmental impact of products and servi- ces. an innovative model for managing the sustainability of telekom products and services, which was developed by telekom, can be used here as a basis, for example. this model uses different criteria to assess the sustainability of iCt products and services while identifying driving forces for customer satisfaction and their willingness to recommend our products and services to others. that provides the product develop- ment, procurement, marketing and Sales departments with the informa- tion they need to design even more sustainable products and use those features to market the products effectively. we are planning to use this internal instruction for the first time in 2013 and calculate the carbon footprint of a product being produced by an international subsidiary. impRoved caRbon footpRint foR ouR netWoRk infRastRuctuRe. 2 emissions generated throughout the entire life cycle of our at telekom innovation laboratories (t-labs ), deutsche telekom‘s cen- tral research and development institute, we continue to work on redu- cing the Co network infrastructure. that also includes realizing savings potential in our customers‘ infrastructure. for example, we developed a load-adap- tive operating mode to help make dSl router operation more efficient and reduce its carbon footprint. we completed pilot projects on this topic in 2012. we are planning to use the knowledge gained in these projects as the basis for feasibility studies, which are scheduled to be completed in 2013. the next step will be to standardize the load-adap- tive mode.
customers Climate and enVironmentally friendly produCtS & SerViCeS 115 the load adaptive mode makes sure that full power is only available to routers while they are actually being used, thereby making them more energy efficient. this mode can be used by the customer on-site as well as in the telekom network infrastructure. by developing this innovation, we are taking steps to fulfill our voluntary commitment to gradually redu- cing network infrastructure energy consumption, which we made when we signed the european Code of Conduct on energy Consumption of broadband equipment. online document seRvices. 2 Switching over to online billing helps reduce Co emissions significantly both in terms of paper production and mail delivery. that‘s why telekom has been offering this service to its customers since 2008 and has made it the standard option in most new contracts. the number of cus- tomers using online billing continues to grow. telekom deutschland sent out around 16 million online bills per month by the end of 2012, which is equivalent to more than 50 percent of all bills for the first time. with its mobile Communications Customer Center, deutsche telekom launched a new online platform in early 2013 where mobile customers can manage all their contract and billing issues conveniently online. Customers can visit the center, for example, to look at their latest billing information (updated daily) or make changes to their personal billing data online. increased online billing in macedonia, montenegro and poland. online billing helps to reduce paper consumption, and in this respect progress was made at several deutsche telekom subsidiaries in the reporting period. at makedonski telekom the number of customers using online billing in the reporting period was twice as high as in the previous reporting period. Crnogorski telekom saw a significant increase in the use of online billing during 2012. online billing for business customers rose from 11 to 16 percent and from 20 to 30 percent for residential custo- mers. as fast and convenient as e-mail and as secure and binding as a letter. de-mail enables companies to transfer a large proportion of their written communication to the digital world, and enables private users to avoid having to meet in person to sign documents. before the de-mail service was launched, well over one million people had already reserved them- selves a de-mail address. many well-known companies from the insu- rance and financial services industries have now signed up too. the environmental effects of de-mail and the potential savings in Co emissions that this service offers were analyzed as part of a case study. de-mail could potentially lead to Co savings of up to 50,000 metric tons per year. to offer the customer an even better carbon footprint during the start-up time for the service, the 8,559 metric tons of Co emissions produced by operating the platform were offset through Co 2 reduction projects for 2012 and 2013. our customers benefit from this approach, because it significantly improves the carbon footprint of the service, which is already positive in comparison with sending letters. 2 2 2 cloud computing. Cloud services are growing increasingly important and as such are a promising market for us. we have set ourselves the goal of enabling constant access to data and services for all of our customers — at all times, from anywhere and on any device, with the full range of services and maximum security. our corporate customer arm, t-Systems, has been offering dynamic Sap services since 2005. Since then, its portfolio has been growing, via application migrations and data integration, and now includes complex cloud services, meeting the strictest possible security standards. t-Sys- tems runs a wide range of services and customer-specific cloud solu- tions within the hosting environment of 90 data centers around the world with more than 60,000 servers. 2.6 million Sap customers use our cloud services. last year, we won a number of big deals, including bp and georg fischer ag. in order to offer our customers even easier and faster access to cloud services, t-Systems also entered into a strategic partnership with Vmware, the world‘s leading provider of virtualization and cloud solutions. ptC continued to advertise online billing to its customers and is also involved in a coalition of companies set up by the polish Confederation of private employers to promote online billing through amended legisla- tion and raising public awareness. we also offer cloud services that are primarily tailored to the needs of our 2.2 million small and medium-sized business customers in ger- many, e.g., virtual servers and security and application programs. this year, the online business marketplace was launched, where companies can book business applications in a flexible, affordable way. De-mAil helps reDuce up to 50,000 metric tons oF co emissions per yeAr. Since September, consumers and business customers have been able to use our secure electronic letter service, de-mail. de-mail combines the advantages of the internet with those of written communication: it is 2 our consumers have long since moved into the cloud. Via the media Center and myphonebook applications, they can store their own docu- ments, photos, videos, music and contact data in the cloud, and can access such files at any time or place. and it all works with any internet-
customers Climate and enVironmentally friendly produCtS & SerViCeS 116 dards or properly recycled. the number of people using our leasing service had increased to some 5.5 million by the end of 2012. telekom and tÜv rheinland offer energy management. deutsche telekom and tÜV rheinland have been helping companies reduce their energy consumption with a complete package since Janu- ary 2013. telekom records all building technology consumption values and constantly monitors peak loads and the energy consumption of it systems. in addition, telekom‘s energy-efficiency management controls larger consumers such as heating, ventilation and cooling systems. tÜV rheinland uses the data provided by telekom to develop energy savings measures and helps companies to set up an energy management eligi- ble for certification. with this offer, companies can reduce energy con- sumption in the field of building technology by up to 15 percent and by up to as much as 60 percent in the case of it systems. caRbon-neutRal shipment via gogReen. in germany we started to use gogreen, the carbon-neutral shipping offering of deutsche post, to ship all of our standard parcels in 2008. we were able to cut back on a total of 78 metric tons of Co2 in 2012 for the shipment of t-online Shop parcels alone. the year-on-year decrease in this value can be attributed to more effective logistics processes as well as the fact that fewer packages were transported. enabled device, whether smartphone, tablet pC, computer, or tV. the tÜV technical inspection agency agrees: the online storage is secure, as is the customer data‒especially since the servers are located in Ger- many. So far, 6.2 million customers have registered with the telekom media Center. cloud-based video conferencing for business customers. Video conferencing can replace business trips, making it a potential way to significantly reduce Co2 emissions. that is why telekom decided to expand its range of video conferencing services in 2012 by adding a cloud application. imeet enables web-based phone and video conferen- cing with up to 15 participants in a personal online meeting room. users can also view documents and work on them together at the same time. impRoving eneRgy efficiency and compensating foR emissions. co 2 with our new Sinus series, telekom deutschland launched the first and, currently, only generation of cordless telephones to bear the blue angel environmental seal in march 2013. these deCt phones meet the high- est environmental standards. they are particularly energy efficient and low radiation. for the first time, our customers can determine the range of their deCt phone themselves. long-term availability of replacement parts as well as a replaceable battery means that customers will be able to use their phones for a long time. we set up the website, www.telekom. de/der-blaue-engel, to provide our customers with more transparent information on the environmental qualities of the first Sinus devices to bear the blue angel seal. neutralizing the carbon footprint of download portals. we are able to improve the carbon footprint of our products and servi- ces by compensating for Co2, which neutralizes the carbon footprint. telekom compensates for the emissions produced by our download portals at the end of every year. we were able to compensate for 592 metric tons of Co2 by investing in high quality climate protection pro- jects at the end of 2012. one project telekom invested in was a project to install biogas plants for families in rural southern india. in addition to reducing Co2 emissions, the project helps local development in many other ways as well. the project meets the international, verifiable wwf gold Standard. according to calculations, telekom‘s load offers — gamesload, musicload, Videoload and pageplace — will generate an estimated 670 metric tons of Co2 by the end of 2013. professional end-device management in leasing service. our increasingly popular leasing service for end-devices helps reduce electronic waste and encourage raw materials recycling, thereby indi- rectly improving the carbon footprint. once the leasing period has expi- red, the devices are processed in accordance with environmental stan-
customers barrier-free produCtS & SerViCeS 117 barrier-free produCts & serViCes. State-of-the-art communications devices are important tools in our everyday lives. to make it easier for people with age-related or physical limitations to use new media, we develop products and services that meet their needs and continuously work to further improve user friendli- ness. throughout the group, telekom also offers various subsidized rates to provide low-income customers and people with disabilities with cost-efficient phone and data rate plans. in line with our Cr strategy, we want to give as many people as possible the chance to participate in the information society and to use the opportunities it offers. pRoducts and seRvices foR the eldeRly. telekom addresses the needs of older people in particular with numerous innovative products and services. we are continually expan- ding our range of products in this area. in 2012, for example, we intro- duced the Sinus a 806 cordless phone with a particularly large display and keys that is compatible with hearing aids. we launched two innova- tive emergency call services to the market as well: we introduced our smart home emergency call solution at german Senior Citizens‘ day in hamburg in may 2012. the solution comes with software that uses sensors to recognize an emergency situation caused by the person falling and automatically contacts the emergency call center. the center can talk to the person via hands-free equipment while a graphically modified image provides them with a picture of the situa- tion. deutsche telekom also launched a mobile emergency call service to market in 2012 in collaboration with the german red Cross and Swiss watchmaker, limmex. the solution is comprised of a wristwatch with an integrated cell-phone function that allows the wearer to call up to ten stored emergency numbers one after the other. another project focuses on improving home care for severely ill patients. a network comprised of palliative practitioners, hospital physicians and nursing staff etc. in the german lahn-dill district will soon be able to monitor patient care electronically. this will help them improve care and avoid unnecessary hospital admissions. the actual benefit of this offer is currently being scientifically evaluated within the scope of a disserta- tion. SmartSenior ‒ Smart living for seniors. being able to live in their own home for as long as possible is a concern for a growing number of older people, and telekom‘s central research and innovation area, telekom innovation laboratories, is developing SmartSenior solutions to help make this a reality within the scope of a joint project. under the coordination of telekom innovation laborato- ries, 28 partners from the world of research and industry are looking into how smart living environments can help seniors within the scope of the research project, which is being sponsored by the german federal ministry for education and research. the project focuses on solutions for increased security and comfort both at home and on the go. Smart- Senior relies on an integrated overall concept with standardized, intui- tive user interfaces that intelligently connects different technologies, from television and smartphone to home electronics and cars. in addi- tion to developing cooperative and integrated business models, tele- kom innovation laboratories is focusing on developing an innovative home gateway that provides access to previously separate, age-approp- riate assistance systems for a healthy, independent life (aal services) via one standardized gateway and makes those services easier to use for older people. a field test was launched in early may 2012 in around 30 apartments in potsdam. the largest german aal project laid the foundation for products and services designed specifically for older people that can now be advanced for a broad market launch. the pro- ject can serve as a role model for joint projects in other areas as well. pRoducts and seRvices foR the heaRing impaiRed. deutsche telekom works to create equal opportunity in telecommunica- tions under the motto „Connect the unconnected“. that includes our services for people with hearing impairments. we set up a hotline espe- cially for this target group in 2003 that is becoming increasingly popu- lar. users can send inquiries to trained employees via e-mail. the emplo- yee either answers the question directly or lets the person know how to contact them via video telephony or webcam. up to 60 people currently call the hotline every day to ask about special rates for the deaf or about special media receivers for television programs with subtitles. the hot- line in bremen is run by two deaf telekom employees. they are availa- ble at the telekom Shop in the bremen weserpark center once a month as well. in addition, in the telekom shops in landsberg am lech and munich, advisory services for deaf customers are provided every wed- nesday and thursday respectively. we are planning to expand this offer to other cities as well. slovak telekom: poRtfolio extension foR the visually impaiRed. Slovak telekom now offers a nokia C5 mobile phone equipped with a special application for the blind and visually impaired for the price of a standard phone. this app talks to customers to guide them through the menu and magnifies the screen. the company also sells a landline phone with a larger display, an enlarged keypad, larger buttons and a function that increases the voice and ring tone volume—again for the price of a standard phone.
customers barrier-free produCtS & SerViCeS 118 connecting the unconnected thRough social taRiffs. makedonski telekom has introduced a social tariff model for vulnerable people on welfare. for example, social welfare beneficiaries who only need voice services can now obtain a free prepaid fixed phone line. moreover, both t-home and t-mobile in macedonia have special offers for elderly people and individuals with special needs. in montenegro deutsche telekom‘s subsidiary, Crnogorski telekom, also offers a special discount for disadvantaged people (25 percent for mobile internet users and 20 percent for adSl). over 300 customers made use of the discount during the reporting period.
customers CuStomer CommuniCation 119 Customer CommuniCation. the internet has become one of the most important sources of informa- tion for consumers. more and more consumers are trading information on products in blogs, forums and other networks and are addressing sustainability-related aspects with increasing frequency. telekom laun- ched a new corporate campaign in 2012 to meet this demand for infor- mation. the digital world campaign has replaced our previous sustaina- bility campaign but is still addressing the same topics. numerous inter- national subsidiaries also promoted a sustainable approach during the reporting period. digital WoRld campaign Replaces sustainability campaign. telekom ended its sustainability campaign and launched its digital world corporate campaign in September 2012. telekom posted infor- mation on current sustainability topics at the company on the sustaina- bility campaign‘s website year-round, including: media skills competition: in february 2012, telekom launched a media skills competition as part of its sustainability campaign. the winner of the competition was featured on the campaign website. call for donations: in october 2012, we used the campaign website and invoice inserts to let our customers know about our continuing support for the bild hilft e.V. „ein herz für kinder“ charity and asked them to participate in a virtual donation drive. the digital world corporate campaign presents deutsche telekom‘s innovative products and services in a broad framework. the campaign also focuses on topics that are important to the environment and society beyond what they offer the individual including smart metering, e-health and virtual newspapers, books and music. we will be encouraging different target groups to embrace sustainability in 2013 as well, another step in fulfilling our corporate responsibility. We caRe app playfully teaches people hoW to live gReen. telekom uses various communication channels to report on its ecologi- cal and social commitment. for example, we have been providing the we Care app as a free download since 2012. with the app, we address target groups that have had little exposure to the topic of corporate res- ponsibility. the app provides answers to questions such as: how many trees have to be planted to compensate for a 1,000 kilometer-long flight? how would a more environmentally friendly alternative look like? the app takes a playful approach to informing people about the areas in which telekom is active, gives people insight into the company‘s philo- sophy and shows how each individual can do their part. hosts katrin bauerfeind and Christian mürau guide users through the content and discuss critical topics and offer different points of view as well. the „we Care“ app provides information on climate protection, social commitment, connected life and work and telekom as an employer. Complex topics are explained using multimedia and interactive content. the app uses 3d animation to explain how the greenhouse effect works, for example. this makes it possible to illustrate the factors involved in global warming in a way that is simple and easy to understand. the basic approach of the app is for users to have fun as they learn about Cr topics. that‘s why the app primarily features simple illustrations complemented with games and intuitive navigation. the app also provi- des information on the latest Cr report. the „we Care“ app received the german CSr prize in the special inno- vation category from the international forum for Sustainability and future Viability. the app also received the „goldener funke“ business communication award as the best Cr communication tool as well as the econ award in gold for corporate communication in the „digital applica- tions“ category. feelgReen.de: sustainability you can enjoy. deutsche telekom‘s feelgreen.de online portal is targeted at people who want to combine being green with enjoyment. the portal provides information and tips at a glance on environmental, social and health- related themes. topics range from nutrition, health and fashion to energy, the environment and travel. customeR communication thRough social media. we want to give our customers and other telekom stakeholders a variety of options for getting in touch with us. in addition to our service offers, we also engage in dialog with these groups on different online platforms such as facebook and twitter. more and more people are following us in these networks. deutsche telekom ag‘s facebook page already has around 31,100 fans (last update: december 2012) and some 36,700 people follow our twitter profile, deutschetelekom (last update: decem- ber 2012). customer assistance through the Feedback community. the www.telekom-hilft.de website has been the place to go for all of telekom‘s social media offers since June 2012. the website offers con- tent across all media. the telekom service team — otherwise known as our feedback Community — answers questions about products and ser- vices on the site. in addition to our facebook and twitter pages, the web- site also features our telekom blog, which we started in 2010. the blog complements the group‘s traditional press activities. people can also access a number of current reports on innovations at the group on our youtube channel.
customers CuStomer CommuniCation 120 magyaR telekom: integRating sustainability into sales activities. magyar telekom, deutsche telekom‘s hungarian subsidiary, published for the first time in april 2012 a mobile device catalog that provides information about the sustainability aspects of different products and labels the mobile devices‘ sustainability features. the „our world is you“ program also has an internal dimension. Several of the wishes mailed by Cosmote employees have already come true. in may 2012, for example, the walls of the Customer Care building were painted in bright colors and with striking designs to cheer up both employees and customers. ote & cosmote: tRacking suRveys shoW cR leadeRship these include: in telecom sectoR. mercury and arsenic-free display pVC-freefree of nickel, brominated or chlorinated elements and antimony trioxide packaging made of 100 percent reusable materials Charger more energy-efficient than even the highest standards energy-saving mode made of 100 percent reusable materials reminder to pull out the charger designed for disadvantaged people (e.g., the elderly, people with disabilities, etc.) magyar telekom indicates the sustainable features in its device cata- logs. the sustainability evaluation of the mobile devices comes from the supplier, however, who is also responsible for such statements. cosmote – “ouR WoRld is you.“ Cosmote‘s corporate campaign in the reporting period was once again its „our world is you“ program, which serves to enhance the company‘s contribution to society and bonding with customers. through this cor- porate campaign Cosmote invited its subscribers to send their wishes „for a better world“ via facebook to inspire the company to take action in the field of social work and volunteering. more than 13,000 people responded and made suggestions via face- book to show Cosmote how to „make the world a little better“. the com- pany selected a number of ideas for a better world that were to be rea- lized with their help. in this context, Cosmote launched a groundbrea- king family Support program in 2012 in collaboration with the Solidarity and Support Center of the City of athens (kyada) to provide in-kind and psychological support to families in distress. through the program Cos- mote provided food, clothing and other necessities, toys, books, internet access, as well as support by psychologists and kyada social workers to a total of 200 families for a whole year. what‘s more, 40 Cosmote employees contributed to the „our world is you“ program by participa- ting in the renovation of the kyada building and by collecting things like clothes, books, etc. in a mobile telephony tracking study conducted in 2012, 46 percent of the participants—residents of athens and thessaloniki—mentioned Cosmote as the most socially responsible mobile telephony company in greece. the mobile telephony company ranked second in this category scored a mere 10 percent while 37 percent of the respondents did not select any mobile telephony company in the „Social responsibility“ cate- gory. the Cosmote score was 13 percentage points higher than the pre- vious year, when the company also came out top. in a tracking study for fixed telephony/internet providers conducted in 2012, 28 percent of the participants—residents of athens, Salonica, urban, semi-urban and rural areas in greece—mentioned ote as the most socially responsible fixed telephony company/internet provider in greece. the company ranked second in this survey was chosen only by 5 percent of the participants, whereas 55 percent were unable to men- tion any socially responsible company. in the 2012 tracking study for 2012 ote achieved the same score as in 2011 in this category, and was ranked first both years. a campaign foR the heaRing-impaiRed in slovakia. during a hearing-impaired week in September 2012 Slovak telekom ran a „love does not need words“ campaign with the aim of raising pub- lic awareness of the presence of hearing-impaired people in society, and to mark the tenth anniversary of the company‘s support for this group of people. on international hearing-impaired day (30 September) all Slovak telekom‘s commercials were shown in sign language — the first time any company had done this in Slovakia. „we would like people to think more about the hearing-impaired in everyday life. they are just like us, but simply have a few more obstacles in life,“ says andrej gargu- lák, head of Corporate Communications at Slovak telekom. during the campaign almost 35,000 people visited a dedicated website and Slovak telekom undertook several activities on facebook to bring the significance of this issue home to people. one was a „read my lips“ app in which people can try to guess what a person is saying by reading their lips. people could also put a badge in their profile picture saying „i love you“ in sign language. although sign language is not internatio- nal, this „i love you“ sign is familiar to all hearing-impaired people around the world. Slovak telekom also posted the sign in all its shops
customers CuStomer CommuniCation 121 where the basics of sign language are spoken so people can easily identify them. last but not least, a special mood film the company shot about a hearing-impaired girl was posted on facebook and youtube. Slovak telekom also ran a fund-raising campaign for the hearing- impaired from September 19 to october 31, 2012. a special online app enabled people to draw a picture and the company promised to donate one euro for every drawing in order to pay for a special course for hea- ring-impaired business people. a total of 1,066 drawings were submit- ted and Slovak telekom tripled this sum to enable the course to take place. infoRmation on enviRonmental pRotection in the czech Republic. 2 emissions and reducing a customer‘s environmental footprint t-mobile czech republic: informing customers about eco-friendly activities. in 2012, in a customer brochure entitled „partner solutions“ t-mobile Czech included a two-page article focusing on the environment, cutting Co through telecommunication services and remote work products (e.g., home office, teleworking, etc.). the company regularly included in the invoices sent to customers specific information about the need to recycle cell phones and the possibility of switching to online billing. the number of online bill activations is continuously increasing and has now reached a total of around 550,000. the company‘s environmental activities are also being communicated on the t-mobile Czech CSr webpage and at several conferences focu- sing on this topic. green ict in the czech republic. iCt is an intrinsically energy-consuming business — and a challenge for most companies. green iCt , in contrast, is a win-win situation for both business and the environment because a company‘s entire iCt techno- logy is moved to a virtual data center („cloud computing“) with dynamic hardware allocation and operation systems, database and web server management. t-Systems Czech held various green iCt presentations at the Czech-american Chamber of Commerce for interested public and business representatives where the focus was on green solutions and security issues. in the reporting period, t-Systems Czech also translated and modified an international sustainability and iCt report in order to make it availa- ble to a broader Czech audience.
customers phone & Cell phone reCyCling 122 phone & Cell phone reCyCling. during this time. in cooperation with the deutsche umwelthilfe environ- mental organization, telekom sponsored a cell-phone collection cam- paign conducted by the odysso science program, which is broadcast by the german Swr television broadcasting company. people sent in 3,500 used cell phones to Swr in the course of the campaign. telekom donated eur 3,000 of the proceeds to deutsche umwelthilfe. in June 2012, telekom received the internationally renowned ethical Cooperation award 2012, presented by the online magazine, ethical Corporation, for its successful cell phone recycling campaign in 2011 to benefit the children‘s charity organization „ein herz für kinder“. Recycling pRogRams in Romania and gReece. cosmote romania: „i love recycling“ program. to mark earth hour in march 2012, Cosmote redirected the public‘s attention to its environmental program „i love recycling,“ which focuses on the importance of collecting and recycling old mobile phones and accessories. for each of the nearly 1,900 mobile phones and accesso- ries collected from the beginning of the campaign up to the end of Sep- tember 2012, Cosmote romania planted a tree near the city of ploiesti on november 10. Cosmote romania also had an additional 5,000 trees planted on a one-hectare site as part of the adopt a forest program. almost 200 volunteers participated in the planting events: Cosmote and germanos employees, their families, external volunteers and school stu- dents. cosmote: „Join us in recycling.“ Since 2005, Cosmote has been implementing a recycling program for mobile phones, accessories, batteries and ink cartridges in all Cosmote and germanos shops and Cosmote buildings. in order to raise public awareness about this issue in 2012, Cosmote ran a campaign of print ads, which was launched on world environment day. deutsche telekom is dedicated to cell-phone reuse and recycling and has launched various campaigns to collect used devices. together with its customers, the company makes an important contribution to conser- ving natural resources and protecting the climate and the environment with these activities within the scope of its „low carbon society“ Cr action area. using cell phones as long as possible helps conserve resources while recycling provides us with valuable raw materials. used cell-phone collection cR kpi. we have been measuring the used Cell-phone Collection Cr kpi since the financial year 2010 in order to highlight the importance of collecting used cell phones. this kpi compares the collected cell phones, measu- red in piece items and the equivalent in kilograms, with the number of customers at the respective international subsidiary. for a detailed description of the Cr kpis, go to Strategy and manage- ment. cell-phone collection campaign. in 2012, we collected a total of 207,543 used cell phones in germany in the course of different campaigns and either had them repaired for reuse or recycled professionally. for each cell phone that was turned in, telekom donated part of the proceeds to the deutsche umwelthilfe e.V. (duh) environmental organization. around 25 percent of the material that makes up cell phones are valua- ble metals, some of which are mined or extracted under problematic working and environmental conditions. that makes recycling particu- larly important. telekom supported the german federal ministry of edu- cation and research‘s educational initiative, „the raw materials expedi- tion—discover what‘s hidden inside your cell phone,“ in 2012 to raise consumer awareness and to encourage people to take a more sustaina- ble approach to cell-phone use. the initiative was launched in the context of the Science year 2012 „project earth: our future“ to raise awareness among young people on how to use valuable resources responsibly through scientifically foun- ded classroom material and collecting used cell phones. telekom hel- ped the federal ministry of education and research run the initiative and conducted its own ongoing cell-phone collection campaign as part of the initiative from September to mid-november 2012. the company also advertised for its customers and the public to join in and donated attractive prizes for the school competition in which more than 1,600 schools participated. in addition, telekom supported the first state-wide cell-phone collection campaign conducted by the bavarian ministry of the environment and public health, „Smart cell-phone disposal“ from april 30 to June 30, 2012, by providing organizational advice and dona- ting prizes for schools. around 70,000 used cell phones were collected
customers ConSumer proteCtion 123 Consumer proteCtion. the exact time for a single customer. numerous different it systems work together for this purpose in fixed and mobile communications. in 2012, the technical services company tÜV nord audited the entire pro- cess chain and associated systems in terms of compliance of the billing process with data privacy and it security, and certified both our fixed- line and mobile communications areas. this was the second tÜV certifi- cation for our fixed-line business. at a glance: examples of voluntaRy commitments and codes of conduct on consumeR pRotection. information and communications technology (iCt) gives consumers a lot of advantages but also comes with some risk. protecting its custo- mers is a key factor in telekom‘s corporate responsibility, from maintai- ning the security of personal information and offering transparent pri- cing models to protecting children from unsuitable content. we want to provide our customers with a secure, reliable user environment and comply with high standards to make this happen. in our efforts to do so we have been able to successfully market new—and sensitive—services such as mobile payment. we especially want to contribute to the safe use of digital media by children and young people. to do this, we help them improve their own media skills and also provide parents in germany with special child pro- tection software, an effective tool to ensure an age-appropriate online experience. in early 2013, we became a member of the alliance for con- sumer education established by the federation of german Consumer organizations. the alliance of representatives from the worlds of busi- ness, science and associations works to promote consumer skills throughout germany through activities such as making media skills part of the curricula. customeR-fRiendly data pRivacy standaRds. deutsche telekom actively participated in the „mobile privacy initiative“ (mpi) to develop customer-friendly data privacy standards again in 2012. these standards are set forth in policies such as the mobile pri- vacy design guidelines, which were published in 2011. Just like other european mobile communications providers, telekom introduced this guideline gradually at its european subsidiaries, completing the process in 2012. Quick reference for data privacy categories. telekom classifies personal and confidential business data in data pro- tection classes ranging from „open“ to „strictly confidential“. a newly developed data privacy disc, similar to a parking disc, shows employees which protection measures need to be employed for the particular infor- mation they are working with. all employees can access the online ver- sion of the data privacy disc from their computer. we are planning to develop a smartphone app to help employees work with data privacy standards in 2013. telekom has created a series of informative flyers on the topic. the flyers provide brief, clear explana- tions of different data privacy and security regulations, for example for working with smartphones. Content is tailored to different target groups such as team colleagues, managers and heads of organizational units. tÜv nord certifies Deutsche telekom‘s billing processes. telekom sends out around 65 million bills in its fixed-line and mobile communications business each month. depending on the rate plan, it is often necessary to process thousands of traffic data items to be billed to
customers ConSumer proteCtion 124 from the adolescent health unit informed parents and children about the safe use of the internet, potential risks, as well as young people‘s addiction through interesting interactive activities. cosmote Romania: safeR inteRnet campaign. through a Safer internet Campaign in the first quarter of 2012, Cosmote romania was involved in promoting safe internet usage for children for the fourth year in a row. on Safer internet day (february 7) the company launched a large-scale communications campaign that made a key con- tribution to the largest national campaign aimed at protecting children and youngsters from unsuitable digital content. this campaign aimed to increase parents‘ and youngsters‘ awareness of the potential dangers encountered while surfing the internet. 32,000 of copies of a flyer entitled „how to protect your children from internet dangers“ were made available through Cosmote and germanos stores and at corporate events. in addition, Cosmote romania implemented an online and print campaign as part of the company‘s commitment to improving the social and environmental dimension in which it operates as a responsible member of the society. globul: Road safety campaign in bulgaRia. globul and germanos conducted a national road safety campaign entitled „drive safely—use hands-free“ from July to december 2012. they distributed leaflets with tips for safe driving and a list of sanctions for road traffic offences as stipulated in the bulgarian road traffic act as well as car stickers with the slogan of the initiative at central junctions and boulevards in Sofia, Varna, plovdiv and burgas. held for a sixth con- secutive year, the campaign aims to encourage responsible driving and the use of hands-free devices behind the wheel—to improve road safety in the country. telekom guarantees consumer protection at the highest level for its cus- tomers through a number of national and international voluntary com- mitments and internal codes of conduct. Sometimes these even go far beyond the standards required by national regulations. we have also made a large number of voluntary commitments in the area of youth protection. ote and cosmote: bRoad-based online safety pRogRam. in 2012 ote and Cosmote joined forces to inform children and parents by releasing a new campaign—“in the internet fairyland, we want no vil- lains“—about online safety and to protect children from possible dan- gers lurking online. this program included the following: safe internet navigation and mobile telephony service usage: e-mails and computer (including parental control services) while ote offers Connx Secure, which provides full protection for a user‘s Cosmote provides a free, user-friendly parental control service enabling subscribers to block adult categories in Cosmote‘s my View portal. raising public awareness: ote and Cosmote have published a new common information leaflet on online safety for children for distribution at the companies‘ customer touchpoints (e.g., the ote telecommunications museum, and big events sponsored by the two companies). collaboration with recognized institutions: ote and Cosmote cooperate with and sponsor the adolescent health unit of the Second department of pediatrics at the university of athens; p. & a. kyriakou Children‘s hospital and the greek awareness Center (Saferinternet.gr), which operates under the auspices of the euro- pean Commission; and the Cyber Crime unit through its support for the awareness Conferences organized in 2012 by the unit on safe internet navigation. ote and Cosmote also support the ypoStirizo 800 11 800 15 helpline of the greek awareness Center. ote is a member of Safenet (the greek self-regulatory body for internet content) and along with Cosmote is a member of the advisory board of greek awareness Center. safer internet Day-2013 initiatives: on the occasion of the Safe internet day 2013 and driven by the conviction that prevention and proper information can ensure the safe use of the internet and of the mobile telephony services, ote and Cosmote implemented an awareness campaign for the second consecutive year. this special event for parents, adolescents and children took place on Saturday, 2 february 2013, at the biggest shopping mall in athens. Specialists
customers proteCting minorS 125 proteCting minors. the internet has become part of everyday life for children and young people. according to a study conducted by the media research associa- tion medienpädagogischer forschungsverband Südwest in 2010, young people spend an average of almost 140 minutes online every day. Some young people are still naive when it comes to using the numerous possibilities offered by the new technology. that‘s why protecting children and young people and teaching them how to use new media responsibly is of pivotal importance. deutsche telekom takes a three-pillar approach: providing attractive, age-appropriate offers for children: we offer children and young people exciting, attractive content with age-appropriate websites and content such as the fragfinn.de search engine and our kids portal, which we have been offering since 2004. promoting media skills: we promote competent, confident use of the internet and mobile communications. this is the only way for children and young people to learn how to recognize risks and stay within boundaries. telekom also collaborates with different social groups and initiatives in this area. offering autonomous, protective tools for users: a key element is also offering suitable protective tools. telekom deutschland has been offering a reliable solution since 2003 with its child protection software, which was officially recognized by the Commission for the protection of minors from unsuitable media Content (kJm) in febru- ary 2012. the software can be used to find out the age rating of websites, for example. in this context, deutsche telekom also supports numerous initiatives and collaborations to protect young internet users. industRy-Wide pRotection of minoRs initiative. internet users are getting younger and younger, which makes providing effective protection for children and young people one of the main chal- lenges on europe‘s digital agenda. at the end of 2011, 28 leading tech- nology and media companies, including telekom, joined forces in the „Ceo Coalition to make the internet better place for kids“ initiative for one year following an invitation by eu vice president neelie kroes. common, long-term goal to improve protection of minors and signed the principles for the Safer use of Connected devices and online Services by Children and young people in the eu. telekom has promised to implement a list of measures at every subsidi- ary in the eu by January 2014 as part of the two initiatives. the measu- res include: designating a child safety officer as a coordinator at telekom and as an external contact offering a special website that provides helpful information on keeping minors safe online Simple, secure mechanisms for reporting harmful or inappropriate content and processing these reports effectively age-appropriate data privacy settings in telekom apps, e.g., for social networks or advertising preferences on cell phones Categorizing content on telekom websites and in telekom services into at least two age groups: „for adults only“ and „for all ages“ a more extensive offer of services to help parents control use of the internet including offering child and youth protection software Systematic removal of child pornography-related content from telekom‘s servers measures to raise awareness among children and young people of how to use the internet responsibly pRotected suRf Rooms and impRoving media skills. telekom supported fragfinn.de, a protected surf room that provides children with a protected online space without inappropriate content, in 2012 as well. Since november 2012, the fragfinn app has been offe- ring a child-friendly browser for smartphones and tablets. we are also involved in various collaborations, including „youth and cell phones,“ which promotes media skills among children and young people. we plan to continue our support for this initiative as well. dtag is also participating in the industry‘s „iCt Coalition for a Safer internet for Children and young people.“ initiative members include tele- communications companies, end-device manufacturers and online ser- vice providers. for the first time, a broad range of companies from the iCt industry along the entire internet value-added chain teamed up for a pRotection of childRen and young people integRated into pRoduct development. protecting children and young people from damaging influences pre- sented by the media is an important aspect of product development at deutsche telekom. our design principles, which are mandatory throug- hout the group, have been in effect since 2009. these are based on the
customers proteCting minorS 126 deutsche telekom has been participating in the child protection aware- ness campaign „sicher online gehen - kinderschutz im internet,“ since July 2012. the campaign is also being sponsored by a broad alliance comprised of the federal and state governments and the business sec- tor. its objective is to raise awareness of youth protection programs and to encourage people to take advantage of them. we also participated in the following numerous initiatives and collabora- tions, working for a safer environment for young people: „be responsible“ principle and specify that criteria for protecting child- ren and young people have to be taken into consideration even as early as in the product development phase. the standards and labels of self-regulation institutions such as freiwil- lige Selbstkontrolle der filmwirtschaft (fSk) and unterhaltungssoftware Selbstkontrolle (uSk), the entertainment software self-regulation body, are becoming increasingly important. these give guidance to children, young people and adults. that is why deutsche telekom makes sure that all of its distribution channels and internet pages comply with the age recommendations published by the self-monitoring institutions. in 2012 we voluntarily labeled our web offers containing age-appropri- ate content (e.g., Videoload.de) according to age groups in compliance with legal requirements and with the standards set forth by freiwillige Selbstkontrolle multimedia-diensteanbieter (fSm), the voluntary self- control of multimedia service providers (self-classification). in doing so, we are protecting young users from content that could negatively impact their development. we also make it possible to block such content with appropriate child protection software. online safety With child pRotection softWaRe. all fixed-line customers can download telekom‘s child protection soft- ware free of charge. during the reporting period, we also started to develop a browser that is safe for children when accessing the internet via a smartphone or tablet computer on the go. as part of our involvement in the Ceo Coalition to make the internet a better place for kids, we also address issues such as parental control over online usage and filter tools for protecting minors. deutsche tele- kom made specific commitments in the context of their involvement in early 2013. initiatives and collaboRations to pRotect young useRs. Close cooperation of all parties involved is crucial to pushing forward the protection of children and young people in the media. that is why telekom collaborates closely in this area with partners from the worlds of business, politics and society and supports numerous initiatives on protecting children and young people in the media on its markets. we have been an active participant in the federal and state administrations‘ multi-stakeholder dialog on developing the system for protecting child- ren and young people in germany since 2009 and have already con- ducted various projects within this context. the goal of the dialog is to establish uniform standards and policies for the protection of minors in the media as well as to initiate measures to communicate and raise people‘s awareness of the topic.
customers proteCting minorS 127 tools. the company‘s commitments for the future include a child safety webpage, appointment of a person responsible for child safety, tighte- ning up the privacy of its social media, refining its reporting tool, develo- ping standardized processes of reporting and implementing a notice and takedown (ntd) policy. slovak telekom: e-book sensitizes paRents to dangeRs of childRen‘s inteRnet usage Children and adolescents are one of the most vulnerable groups in the virtual environment, especially as they are the ones most attracted by these new technologies. So Slovak telekom launched a free e-book that makes parents aware of the dangers their children may encounter in internet usage. the company is the main partner in a project involving the ministry of education, Science, research and Sport and other orga- nizations. the chapter on mobile usage was co-written by telekom employees. the book is available as a free kindle download slovak telekom: child safety seminaRs continued. between may and october 2012 Slovak telekom was involved in an internet child safety campaign, which involved visits to 78 schools. over 7,000 children attended these seminars on safe internet usage conduc- ted by an ngo known as eSlovensko. the topics vary, but usually they show the children cartoons and then discuss about the danger featured in the cartoon. the seminars are interactive and sometimes the children act out their own theater play about safety on the internet. in addition, 339 teachers were trained in how to teach their pupils about internet child safety tools. 30 young people attending the special Summer university of Comenius were invited by endowment fund telekom with pontis foundation to attend two seminars at magio beach, one on sign language and one on safe use of the internet. Slovak telekom paid for the students to attend these seminars. inteRnational confeRence on safeR inteRnet usage in poland. the polish subsidiary ptC co-partnered the 6th international Confe- rence on „keeping Children and young people Safe online,“ which was held in warsaw on September 20-21, 2012. 57 speakers and nearly 600 participants from over 20 countries attended the conference, which attracted experts from all over europe who are dealing with issues of internet usage by children and young people. the extensive conference program comprehensively tackled the issues relating to internet usage by these vulnerable youngsters. two ptC employees directly contribu- ted to the conference by giving a talk on the operator‘s perspective on children in the mobile world. in this talk they particularly stressed the importance of education. taking action against child poRnogRaphy. as a responsible company, deutsche telekom considers it its obligation to take rigorous action against depictions of child abuse and its docu- mentation. telekom has been working with criminal prosecution authorities and ngos active in this area in germany and in other countries for some time now to ban such content from the internet. this topic was also hea- vily discussed in 2012 in the context of the „Ceo Coalition to make the internet a better place for kids.“ deutsche telekom made a commitment in early 2013 to implement measures as part of this initiative. magyaR telekom: ensuRing child safety. a Safer internet Conference staged in September 2012 featured three presentations of magyar telekom‘s child safety strategy, policy and
customers CuStomer SatiSfaCtion 128 Customer satisfaCtion. as a service-oriented, responsible company, we feel obliged to respond to our customers‘ needs and expectations. we have incorporated this commitment in our group-wide guiding principle „Customer delight drives our action.“ in this vein, we develop sustainable products with a high degree of reliability and easy-to-use, intuitive controls. into account. that‘s why an independent external service provider uses structured surveys to assess customer loyalty (surveys at telekom deutschland are conducted by the tnS-infratest market research insti- tute via the globally-applied tri*m method). as part of this customer loyalty study, we measure our customers‘ loyalty to our company several times a year, primarily based on responses to the following questions: in order to promote dialog with our customers, our goal is to enable them to get in touch with us in a fast, uncomplicated way through vari- ous different communication channels. Since march 2013, we have been the only provider that can be accessed at any time free of charge by all fixed-line and mobile communications customers. this applies to all service numbers for questions about fixed-line, online, wireless and tV issues. online inquires are becoming more and more important. more than 40 percent of all service inquiries at telekom deutschland are solved by support provided by our cross-area online platforms. Systematically evaluating customer inquiries and complaints gives us the chance to identify the underlying causes and introduce improve- ments, helping us achieve our aim of significantly reducing the number of complaints. we evaluate customer satisfaction at all of our locations by conducting surveys, and integrate the results into our management processes. Systematic complaint management also provides us with valuable infor- mation about areas that need improvement. impRoved seRvice at the seRvice centeR. Compared to late 2011, we recorded 20 percent fewer complaints and repeat calls in the areas of fixed-line and mobile communications at the end of 2012. within the scope of our k1 program („Customer first“), we launched the Complaint management 2.0 project in 2012 to improve customer ser- vice in the fixed-line consumers area, where we frequently get calls. if customers make repeated calls within a certain period of time, a trained case manager takes over the service process. the case manager hand- les the case and provides the customer with regular progress updates, e.g., via a short phone call. thanks to these improvements we were able to increase customer satisfaction considerably. that also effects the results of our customer loyalty tri*m program. we are planning to expand the Complaint management 2.0 concept to include other custo- mer contact channels such as e-mails and complaints in the technology area. tRi*m 2010 pRogRam foR incReasing customeR loyalty. we see it as our duty as one of the leading providers of telecommunica- tions and information technology worldwide and a service-oriented, res- ponsible enterprise to take the needs and opinions of our customers how our customers rate our performance, whether they intend to remain with us and would recommend us to others, our cutting edge over the competition. the results are expressed in the form of a specific indicator, the tri*m index, and integrated into our management processes. we were able to increase customer loyalty by 3.6 percent between 2011 and 2012 (last update: december 2012). our goal is to increase this value by a total of around 10 percent by 2015. „customeR fiRst“ pRogRam expanded to business customeRs. in 2011, telekom expanded its contact reduction program to include business customers, also streamlining and expanding is complaint management processes within the k1 program (Customer first). the goal was to improve complaint service, avoid unnecessary customer calls and permanently improve customer satisfaction in the business customer segment. the main focus of our activities was to increase satisfaction among small and medium-sized enterprises. these measu- res enabled telekom to steadily increase customer satisfaction with the way we handled complaints. the results were up to 10 aCCi (after call customer interview) points higher at the start of 2013 than at the end of 2011. however, there is still a lot of potential for improvement in the complaint management area. that is why we introduced additional steps in 2012 as part of the initiative. for example, we launched a new market research tool (process tracking) in January 2012, which for the first time monitors relevant business processes in telekom deutschland‘s fixed- line for business customer area and then evaluates the results using standardized kpis. unlike the aCCi, which uses market research to mea- sure customer satisfaction 48 hours after service contact, this value is calculated using process tracking 14 days after service contact. using both the aCCi and process tracking gives us a complete picture of cus- tomer perception along the entire process chain.
customers CuStomer SatiSfaCtion 129 feedback community social media platfoRm. we have been bringing together all of our „telekom hilft“ activities (telekom helps), which we publish on our facebook and twitter chan- nels, on our new social media platform, „feedback Community“, since may 2012. helpful tips and problem solutions from our service channels in the social web are now available in one place. 58 telekom employees initiate and moderate discussions between our customers and solve specific service issues from the community as needed. Some 24,000 members have signed up since the platform was launched. we sent out around 104,000 tweets providing information on telekom- related topics in 2012, which around 23,000 people followed. the tele- kom hilft facebook fan page already has more than 36,600 fans (last update: december 2012). leading the way in customer service via social media. telekom answers almost all customer inquiries received via social media, making telekom the leading german company in this area. in the allfacebook Stats study from 2012, telekom came in first out of 433 german brands with its „telekom hilft“ facebook page. the company came in fifth in the general international comparison. tÜv confiRms telekom‘s seRvice quality. the technical services company, tÜV rheinland, has been conducting a customer service assessment of the telekom service hotline for twelve years now. telekom shops and technical service were included in the assessment for the first time in february 2013. the survey of more than 2,500 customers on topics such as reliability, competence and friendli- ness showed that customers give telekom‘s service at all three units a good rating. with these results, the units new to the 2012 assessment were able to join the service hotline in its positive results from previous years. this shows that our efforts to improve customer service are pay- ing off.
customers reSearCh & innoVation 130 researCh & innoVation. telekom is not content with just being state-of-the-art but wants to antici- pate new developments and help shape the future. that is why we invest in wide-ranging research and development activities, in particular in the work of telekom innovation laboratories. we are also committed to financing professorships and creating pioneering ideas in cooperation with universities. however, this indicator must not be considered in isolation from the three-pronged innovation strategy described above. we also rely on new external innovations and plan to generate growth not only from our in- house developments but also from our partnerships and company shareholdings. we currently have a fund of eur 410 million available for such projects, for example in our t-Venture company. by developing smart solutions in the areas of energy, automotive and healthcare, telekom has opened up new business areas. together, these business areas are expected to generate around one billion euros in revenue by 2015. we intend to become the number one partner of the healthcare industry by providing innovative health services. expendituRe in ReseaRch and development. research and development expenditure includes pre-production research and development, such as the search for alternative products, processes, systems, and services. by contrast, we do not class as research and development expenditure the costs of developing system and user software with the aim of increasing productivity and providing more effective it support for business processes. in 2012, research and development expenditure in the deutsche telekom group amounted to eur 65.9 million, which is less than in the previous year. as the parent company, deutsche telekom ag bears part of the group‘s research and development expenditure. at eur 52 million, this amount was slightly above the prior-year figure of eur 48 million. deutsche telekom‘s investments in internally generated intangible assets to be capitalized were down year-on-year at eur 78.0 million. these investments predominantly relate to internally developed soft- ware, mainly for our Systems Solutions operating segment. in the reporting year, over 2,400 employees (2011 around 2,200) were invol- ved in projects and activities to create new products and market them more efficiently. the majority of employees working for t-labs , the unit responsible for results-oriented research and innovation, are resear- chers from a wide variety of disciplines. telekom innovation laboRatoRies, ouR centRal innovation unit. telekom innovation laboratories (t-labs ) is the central research and innovation unit of deutsche telekom. t-labs works closely with deut- sche telekom‘s operating units by offering new ideas and support when it comes to developing and rolling out innovative products, services and infrastructures for telekom‘s growth areas.
customers reSearCh & innoVation 131 telekom innovation laboratories incorporates six innovation areas: internet & services new media Cross-domain middleware Convergent networks & infrastructure emerging ecosystems it & cloud t-labs ReseaRch aReas. research and development at telekom innovation laboratories ranges from developing interactive, globally available media services and virtu- alizing the it infrastructure as part of cloud computing development to extensive it infrastructure improvements. focal topics in 2012 included the following: smart assistance systems: t-labs coordinated the SmartSenior research project conducted by the german federal ministry for education and research, which was completed in 2012. the goal of the project was to enable older people to live independently in their own homes as long as possible with the help of smart assis- tance systems. in the project, t-labs developed an innovative home gateway that provides access to previously separate, age-appropri- ate assistance systems for a healthy, independent life (aal services) via one standardized gateway and makes those services easier to use for older people. load-adaptive network operation: load-adaptive network opera- tion, which brings network capacities in line with current demand, is energy-efficient and helps conserve resources. networks that feature smart control systems to dynamically adjust capacities to current demand are gaining importance especially in times where the use of renewable energy sources is on the rise. in the context of the deSi project, telekom innovation laboratories is working to further advance load-adaptive networks, a technology originally designed solely for use in emergency power supply. it-supported traffic management: in cooperation with the hamburg port authority, Sap and t-Systems, t-labs is developing an it-supported traffic management system that can be used to optimize the flow of goods based on constantly updated information on freight orders and the current traffic situation as part of the Smart port logistics project. and sight impairments—into digital text and vice versa. the lorm alphabet is a hand-touch alphabet where specific points of the palm of the hand represent different letters. words are composed by touching the relevant points. thanks to a glove equipped with sensors (a lorm glove), these messages can be transformed into text and then transferred to mobile devices or computers. the system signals incoming text messages to the person wearing the glove via vibration. in 2012 t-labs also founded a new telekom subsidiary, trust2Core, that enables highly secure mobile communications. other start-ups are being planned. pioneeRing developments in t-city szolnok, hungaRy. the t-City program was launched more than three years ago in Szolnok, hungary. it aims to introduce new and innovative services and product concepts to the local residential and business market. during the past few years, numerous products and services have been launched in this city. this opportunity to test the services in the city before the actual pro- duct launch enables magyar telekom to fine-tune its service concepts to customer expectations. FuturistA. in the two-year futuriSta program announced in 2012 and running for two years from January 2013, magyar telekom invited 20 Szolnok households to test its product developments before their market launch. these households were asked to share their experiences via question- naires or personal interviews in order to help the company fine-tune its products and solutions. intelligent city card. a sophisticated smart-card solution initiated in 2012 works on the „one card“ philosophy, i.e., all the separately card functions previously availa- ble are now integrated into one card. already more than 500 test cards are in operation. the beneficiaries come from all groups of the city‘s population since the card can be used in various areas of their lives, e.g., as school card and school id card in cooperation with hungary‘s national unified School Card System; at work as a card to track the number of hours worked; or in public transport as a smart ticket solu- tion. what is more, this smart card opens up new possibilities for future implementation, e.g. a mobile public transport ticket payment system, near field communication (nfC) solutions or a usage-based billing sys- tem for public transport. communication and translation device for deaf-blind persons: t-labs ‚ prototype of the mobile lorm glove turns the lorm alphabet ‒ a means of communication for people with pronounced hearing Mobile City app‒enhanced version of previous virtual tour guide. previously implemented as a virtual guide to Szolnok, detailing all the important and famous places in the city with useful up-to-date informa-
customers reSearCh & innoVation 132 and taking photos of a vehicle. as such, it plays a key role in improving crime detection. improving ict skills for people of all ages. in order to enhance iCt skills in hungarian society, magyar telekom offers Szolnok residents two programs free of charge: the internet aca- demy, which primarily addresses senior citizens, and t-City kids, an iCt education program for children between the ages of 8 and 11. more than 300 people have already taken advantage of the internet academy programs and more than 1,200 children have participated in t-City kids so far. cRoatia’s fiRst nfc mobile payments pilot. near field communication (nfC) technology is an innovative and safe way of making fast cashless payments by mobile phone. hrvatski tele- kom launched a test phase for nfC technology in 2012 in which some 200 of its employees were able to make payments at selected points of sale using nfC-enabled mobile phones. tion, the enhanced version of this mobile city app now takes the users‘ manifold requests into account and features upgraded functions with useful opportunities related to everyday life in the city. the free app has already been downloaded more than 8,500 times. users are informed about all the city‘s cultural, sport and educational programs and are often motivated to send short messages about any activities, potholes in roads, damage, etc. that are of importance to the city authorities. ano- ther interesting function is that the city‘s senior officials can send push notifications to local residents. last but not least, facebook is also integ- rated into the mobile City app. optimizing energy management. energy consumption has been monitored in two secondary schools and the mayor‘s office to determine their potential for energy savings. mag- yar telekom experts prepared proposals for optimizing the energy con- sumption of the above-mentioned institutions. smart metering . as part of a pilot program initiated in 2012 with a strategic partner from the energy sector, magyar telekom plans to set up a comprehensive smart metering system for meter, network and meter data management. the pilot program involves the power company installing smart meters in 1,000 households in Szolnok‘s varying rural and urban transformer network topology. the first 500 meters had been installed in households by the end of 2012. this equipment enables the power company to obtain cost-benefit analyses and extensive information about the energy usage characteristics of each household. for their part, the households participating in the pilot are also benefiting from the chance to monitor their energy consumption via a magyar telekom web interface. public lighting optimization program. in 2012 magyar telekom launched a program to test different technolo- gies that enable the local council to save money on energy consump- tion. monitoring water quality. in august 2012 magyar telekom installed a water quality monitoring system powered entirely by renewable energy. the system, which works 24 hours a day (except in the cold winter months), examines different water quality parameters and enables the general public to access the results in real time via a web interface. cityguard. the enoto system installed in a suburban area of Szolnok to monitor the roads of the settlement is playing a key role in resolving the public‘s safety concerns since it improves their security situation. the equipment installed is capable of identifying — without human intervention — any vehicle registration number coming from any direction 24 hours a day
customers reSearCh & innoVation Smart grids & smart metering 133 smart grids & smart metering. telekom prepares the data from the meters and then transfers it to the relevant energy provider via a smart metering platform in compliance with high data security and data privacy requirements. unlike recording data manually, there is much less chance of error in smart metering with a more efficient recording process and shorter processing times. the short meter reading intervals required to control demand intelligently can only be managed by technological means. Connecting more than 100 types of meters from around 20 different manufacturers, telekom‘s smart metering platform is highly developed as well as efficient in terms of time and cost. the „metering in mülheim“ project is the largest test- bed for smart metering in germany with a total of 100,000 meters. smaRt meteRing pRoject launched in the czech Republic. the project involves new smart metering technologies, testing and data transport straight to energy distributor‘s office and data processing sys- tems. although preparations for this smart grid/smart metering project began in 2011, it was realized in 2012 with first installation being in Pardubice with the major utility company ČEZ, a.s. (Czech Energy works). an agreement with e.on and rwe is also in progress. the use of wind and solar energy poses a considerable challenge to energy providers. the constantly changing intensity of wind and sun has an impact on electricity generation while the voltage in the power grid needs to remain stable to prevent power outages. what is more, an increasing number of private households are producing their own elec- tricity, for example by using small cogeneration plants or photovoltaic systems. energy flows need to be controlled intelligently with the help of modern iCt so that a balance can be maintained between local genera- tion of energy and energy consumption. this requires a smart grid. in order for a smart grid to work properly, a huge amount of data needs to be evaluated in real time for operators to see when and where how much electricity is being generated and how much needs to be sup- plied. Smart meters provide the needed transparency. we have been working with local utilities and major energy suppliers on different pro- jects dealing with smart metering and smart grids. smaRt gRids and gReen ict at t-labs. telekom laboratories is working intensively on several research and development projects to come up with possible ways to control commu- nications networks using flexible, load-adaptive technology. examples include the lola (load-adaptive networks & lans) and deSi (end-to- end energy-sensitive iCt production) projects. integrated storage ele- ments make it possible to dynamically incorporate energy sources based on demand. it is also possible to adjust the capacities of different network areas to current demand by flexibly activating or deactivating individual network components, which helps saving energy. we may even be able to help keep power grids stable through iCt-supported control of electricity supply in line with demand. in october 2012, energy provider enbw, the abb technology group and deutsche telekom put the first automatic local grid station into opera- tion in the bavarian town of wechingen. this unit with its compact design makes it possible to adjust the voltage in the local grid to the amount of energy being produced by renewable energy sources. the station automatically shuts off different production plants on the week- ends when residents are using less electricity, for example. that helps keep mains voltage from increasing excessively. the automatic local grid station is an important component for low-voltage smart grids and and reduces the need for expansion of the high-voltage grid. smaRt meteRing. during the reporting period, telekom was commissioned by rwe to install 15,000 smart meters in the german city of mülheim. according to the eu‘s third energy market package published in 2009, at least 80 percent of customers should be able to monitor their energy consump- tion with the help of smart meters by 2020, motivating them to reduce energy consumption by providing up-to-date consumption data.
customers reSearCh & innoVation Connected cars 134 ConneCted Cars. business drivers such as competitive pressure, increasing efficiency and cost reductions in the automotive industry and in fleet operations combined with the fact that consumers want more security and to see their mobile lifestyle integrated into their car calls for new solutions and business models for the connected car. deutsche telekom has been actively pushing this development with a number of innovations. these include machine-to-machine (m2m) and broadband communication for assistance systems and cloud-based real-time services, new mobility concepts and smart transport systems in which environmental and security aspects play a key role. gRoup business aRea foR connected caRs. telekom is connecting dashboard computers in cars with the cloud, giving drivers and passengers access to the internet and online applica- tions on the road. transmission channels include mobile communica- tions technologies such as umtS, hSdpa and gprS. the deutsche telekom group‘s Connected Car business area focused on four markets during the reporting period: car manufacturers: brand differentiation and customer retention in the automotive industry increasingly depend on online services. telekom helps car manufacturers and dealers offer, integrate and operate cloud services designed specifically for cars (car cloud) in areas such as pub- lic transportation systems in major cities where people can use different forms of public transportation and affiliated car sharing initiatives with an electronic combo ticket. telekom also supports the automotive industry in processes for online customer management in marketing and sales. logistics service providers: optimizing capacity utilization and avoi- ding empty runs require real-time tracking of vehicles and goods. tele- kom is integrating all the players in the logistics network on a modern telematics platform. Fleet operators: using telematics in vehicle and driver management processes gives fleet operators increased efficiency and transparency as well as an improved carbon footprint for their commercial fleets. telekom provides effective telematics solutions together with efficient customer and product processes. telematics services in the area of car sharing and rental fleets can make it easier to book and use cars, increasing the attractiveness of car sharing services. customers: Synchronizing smartphones with the dashboard computer lets people use private communication, social networks and personal data from the cloud while driving without posing a danger on the road. Seamless integration of cars into new mobility concepts such as car sharing using telematics-based technologies also promotes green mobi- lity. deutsche telekom is also active in the area of electromobility and mobility concepts. one example of the company‘s activities is the Con- nected mobility project in the german city of friedrichshafen, where we are testing how to integrate electric cars in terms of traffic, communica- tion and energy. telematics application foR shipping companies. t-Systems and man worked together in 2010 to develop a telematics application for logistics service providers and fleet operators. we laun- ched the europe-wide roll-out during the reporting period. the applica- tion records all relevant vehicle data, evaluates it and then sends it to a portal. operators can use the portal to analyze their drivers‘ driving profile, determine the next maintenance date and communicate with the drivers. Current driving and sensor data of refrigerated transports are monitored live and drivers are notified on their smartphone when the temperature of their freight is rising. gReen telematics applications Reduce pollutant emissions. 2 Various independent studies show that fleet operators‘ fuel costs and Co emissions can be reduced by around 10 percent by using different telematics solutions. telekom is involved in various projects in this area. for example, telekom developed an app in 2012 for fleet operator telekom mobilitySolutions called the t-Systems mobility manager. the app collects electronic vehicle data and then transfers it to a central database in the t-Systems cloud. there, the data is evaluated practically in real time and then combined with data from the system such as infor- mation about current prices at nearby gas stations. in addition to smart fueling, the mobility manager services include smart parking and eco- drive, a service that offers tips on low-emissions driving.
customers reSearCh & innoVation e-health e-health. 135 networked services can offer major social value. one excellent example is telemedicine, which helps reduce the cost of providing health ser- vices. in addition, it offers a broad array of facilities for patients and medical staff, ranging from mobile access to electronic patient records, reliable remote diagnosis and treatment to transmission of lab results in a matter of seconds. mobile Rounds With the ipad. in cooperation with the berlin-based hospital, Charité, telekom has been piloting a mobile application for doctors since 2012 that can be used for read-only access to relevant patient information on the go via an app on your tablet pC. the app connects the tablet to the hospital‘s information system as well as other laboratory and imaging systems. dif- ferent administrative and technological measures, such as encrypted data transmission, guarantee data privacy. doctors can look at their pati- ents‘ vital data at any time and from any location and use their tablet as an aid when explaining treatment to patients at their bedside. in 2012, doctors at the Clinic for neurology on the Charité mitte campus began testing pilot operation of the mobile, electronic patient file. telekom continued to work on the development of numerous innovative healthcare applications during the reporting period as well: Digital doctor iD. the digital doctor id by t-Systems enables doctors and hospitals to be connected securely without extensive investments. doctors can use the id to log onto different online portals, sign documents so that they are tamper-proof and then send them via e-mail in encrypted format. multimedia system for patient rooms. telekom launched the „entertain am krankenbett“ multi-feature media system for patients at hospitals and rehabilitation centers as well as for residents of homes for seniors in 2012. the system offers different ways to access movies, tV series and e-books and can also be used to make service calls or monitor building systems. the thin client solution, where all applications run on a central computer, also reduces electricity costs by 80 percent compared to hardware solutions. telemedicine applications foR patients. telekom has developed a number of different applications for various patient groups in the telemedicine area as well. prevention with e-health. telekom supports the prevention program, health watchers, which was developed by general practitioners in leipzig, germany and can be used to constantly monitor the health of patients with high blood pressure and diabetics. treatment for high blood pressure, for example, involves regularly measuring the patient‘s weight and blood pressure and sending the information to their electronic patient file. the doctor can then track the recovery process with visual depictions of the evalua- ted data. the system makes it easier to motivate patients to change their lifestyle for the long term. the seamless control of data helps diabetics adjust their medication more effectively, reducing their risk of secondary health issues. during the reporting period, telekom also developed an online platform in collaboration with Central health insurance company that helps diabetics better understand the relationship between nutri- tion, daily activity and higher or lower blood sugar levels. at the heart of the platform is an electronic journal that is used to record current patient data with the help of devices such as a pedometer or a blood sugar monitor connected to a smartphone. the platform gives patients feedback on the effect their behavior is having on their health, which should ultimately encourage them to live healthier lives. Ambulance for stroke patients. Since 2012 and in collaboration with deutsche telekom, the berlin- based hospital, Charité and other partners have been researching the use of an ambulance specialized in preclinical treatment of stroke pati- ents. the ambulance features a computer tomograph and telemedical connection technology. radiologists and neurologists at Charité use the data collected on site to come up with a precise diagnosis and then tell the emergency doctors the best clinic to take the patient to. deutsche telekom encrypts and sends the data with top priority status. the service also includes video communication in hd quality. cosmote: geRyon1 ReseaRch pRoject. in 2012, Cosmote took part in the geryon1 research project aimed at developing communication infrastructures which, in emergencies, will allow an in-depth exchange of information (geographic location, photos, video, etc.) to facilitate quicker identification and coordination of the parties involved, as well as a more immediate response by rescue teams. mysugR-app foR people With diabetes. t-mobile austria initiated a collaboration with austrian start up, mySugr, in honor of world diabetes day on november 14, 2012. the austrian company has developed an app for people with diabetes that is structu- red like a game. users collect points by entering the values of their meals and certain activities and then tackle exercises. the app gives users a quick overview of how their blood sugar is responding and helps them improve their treatment in a playful setting. an additional project is targeted especially at children with diabetes.
society 136 soCiety. telekom not only provides the necessary iCt infrastructure but also helps give as many people as possible access to the information and knowledge society through its many different activities. our involvement is based on our desire to contribute to the well-being of society as an active member of the community. we conduct all of our activities in compliance with our Cr strategy and the action areas specified therein. under the motto, „we take responsibility,“ we have launched numerous initiatives of our own and have also sponsored non-profit organizations to live up to our responsibility to society.
society engagement@telekom 137 engagement@telekom. the fast technological change taking place in society offers a range of opportunities. however, at the same time, it represents a risk for social cohesion. as a responsible enterprise, our aims must there- fore include enabling as many people as possible to participate in the information and knowledge society. this is one of the goals involved in our action area „Connect the unconnected,“ which we have set forth in our Cr strategy. to allow us to reach people in diffe- rent phases and situations of their lives, we have placed our social commitment on a broad basis and focused it in our engagement@ telekom program. the activities conducted as part of the engagement@telekom platform during the reporting period focused on corporate giving and corporate volunteering. Various projects to promote media skills were launched in this context. for example, we provided school students with information about data privacy and security, provided training on how to use cell phones for people with disabilities and conducted campaigns for the european year for active aging and Solidarity between generations. the engagement@telekom platform was one of our focal points in 2012 in our collaboration with international subsidiaries. the agenda of the Cr manager network meetings, held in bonn in april and in Vienna in november, included workshops lasting several hours and an opportu- nity to share best practices on how to conduct corporate volunteering and corporate giving. between the meetings, the manager network wor- ked on introducing standardized relevant performance indicators.
society engagement@telekom Corporate volunteering & corporate giving 138 Corporate Volunteering & Corporate giVing. telekom supports and encourages the volunteer efforts of its employees (corporate volunteering) and uses the positive effects of team activities to promote human resources development. we also make corporate donations (corporate giving) worldwide to support non-profit organiza- tions, to recognize our employees‘ volunteer efforts and to provide fast aid to the victims of disaster. we frequently give our employees the chance to help us decide where our donations will go, as we did in 2012 when we asked them to decide where we should donate the pro- ceeds from this year‘s Christmas campaign. this year our employees also decided where we should donate the penalties paid by users of high-emissions cars from our company car fleet with higher mobility costs and higher pollution levels (see green Car policy). coRpoRate volunteeRing pRogRam in geRmany. as part of the engagement@telekom initiative, we have set up an internet platform to encourage our staff to do voluntary work. in addition to providing information on current projects that employees can participate in, the platform also gives them the chance to sug- gest their own projects and find people who want to volunteer. they can also apply for funding for their volunteer projects. many emplo- yees take advantage of this offer. by late 2012, more than 300 pro- jects, project suggestions and requests for volunteers had been posted on the portal. engagement@telekom supports these projects with up to eur 250,000 each year. employees can also use our volunteer mosaic intranet tool to present their volunteer activities and talk about what motivates them to volunteer their time. employees had posted more than 158 entries there by the end of 2012. the mosaic was used to spell out the word danke („thankS“) on Volunteer day and then used in internal communication. we also gave the bbe organization (bundesnetzwerk bürgerschaftli- ches engagement) access to the mosaic tool for their 10-year anni- versary. the bbe is using the tool as a community involvement mosaic. integration into training programs. in 2012, deutsche telekom continued to expand its corporate voluntee- ring activities under the engagement@telekom program and optimized the integration of corporate volunteering into the company‘s training programs. many of our 9,300 trainees and students on cooperative degree courses volunteered for a good cause this year as well. we pre- sent an award to the most effective project each year at our responsibi- lity wins! competition as a way of honoring the community involvement of our trainees. at the awards ceremony in february 2013, a team from rottweil received first place for coming up with suggestions for impro- ving barrier-free access at three telekom shops in the region. Award for taking responsibility. deutsche telekom once again received numerous awards in 2012 com- mending the quality of its involvement in the community. in June 2012, deutsche telekom received the internationally renowned ethical Coope- ration award 2012, presented by the online magazine, ethical Corpora- tion, for its successful cell phone recycling campaign in 2011 to benefit the children‘s charity organization, ein herz für kinder. the german red Cross (drk) blood donation service also presented the company with the helping hand award for its many years of support. deutsche tele- kom also received the tafelteller award from the german tafel food bank (deutsche tafel) for the third time. the SoS Children‘s Village pro- ject received two awards, one at the deutsche telekom responsibility wins! competition and first place in the u21 category for participants ages 21 and under in the regional competition held by the deutscher bürgerpreis organization (prize presented to german citizens for their involvement in the community). special events foR volunteeRing. our employees were once again able to volunteer their time at numerous special events. deutsche telekom supported the Community Volunteering week held by the bbe organization (bundesnetzwerks bürgerschaftliches engagement) from September 24 through october 3, 2012, as well as international Volunteer day on december 5, 2012. community volunteering week. this year, the third group-wide guiding principles day, which is devoted to living out deutsche telekom‘s corporate values, took place during the bbe‘s Community Volunteering week from September 24 through octo- ber 3, 2012. numerous employees throughout germany used the opportunity to support deutsche telekom partner organizations. trai- nees from Saarbrücken donated eur 350 earned in a button sales cam- paign to the german bone marrow donor Center (dkmS). during Com- munity Volunteering week, telekom trainees in berlin spent a day wor- king together with the german federal ministry of family affairs, Senior Citizens, women and youth (bmfSfJ) and employees from the randstad temp agency in the neighborhood of berlin-marzahn on the bollekids project sponsored by the Straßenkinder e.V. organization to help children living on the streets. in bonn, deutsche telekom emplo- yees conducted a cell phone workshop for mentally disabled residents of the lebenshilfe organization centers, and telekom teams helped the bonn city forestry department get the bonner Stadtwald park ready for winter. the joint campaign conducted by deutsche telekom and the bbe orga- nization within the scope of Community Volunteering week was presen- ted as an example of best practice at the bbe government and busi- ness stakeholder day on december 10, 2012. deutsche telekom has also been supporting the bbe network development project since July
society engagement@telekom Corporate volunteering & corporate giving 139 2012 within the context of its membership in the bbe organization. the goal of the project is to better mobilize the network‘s current resources and potential and make these easier to use. trees in a forested area near heide, germany and in october, telekom employees planted new fruit trees in the Siebengebirge area with advice from the nature conservation organization, rhein-Sieg biologische Sta- tion. international volunteer Day. telekom used the occasion of international Volunteer day on december 5, 2012, to motivate its employees to get involved and to recognize those who already volunteer. partner organizations presented their acti- vities and their collaboration with telekom in germany at company headquarters in bonn. representatives from the german bone marrow donor Center (dkmS), the bonn tafel food bank and the deutschland hilft non-profit association as well as the telekom foundation attended the event. numerous employee volunteer efforts were also presented at an exhibition. head of human resources at telekom deutschland, diet- mar welslau, recognized ten „life savers“ whose bone marrow donation gave leukemia patients the chance at a new life in 2012. two deutsche telekom employees also got to meet the recipients of their donations within the scope of international Volunteer day, a four-year-old boy and a sixty-five-year-old man. telekom employees also donated high-quality, non-perishable food- stuffs to the bonner tafel food bank at the event. the group had asked its employees to contribute a donation to needy people in the region. donations were handed in on december 5. 14,829 volunteeRing employees. in the context of the engagement@telekom program, 14,829 employees did volunteer work in 2012, e.g., as part of one of the 380 Social days. they volunteered at schools and day care centers, conducted initiatives to improve media skills, participated in typing drives for dkmS, the german bone marrow donor center, and volunteered for the environ- ment. Such volunteering work often results in long-term involvement and regular joint activities. in april, for example, eight telekom employees painted the classrooms at a school in the german rhein-Sieg district; in may, twelve telekom managers helped volunteers of the food bank in dortmund. we also took part in various activities as part of our partnership with the lebens- hilfe organization, in which we have been involved for many years. tele- kom employees redesigned the garden and patio at a residence for peo- ple with mental disabilities within the scope of our Social days, for example. in addition, employees initiated and conducted many additio- nal projects on their own. employees from the international subsidiaries volunteered in numerous projects as well. employees volunteer for the climate and environment. other activities focused on the environment and climate protection. in may 2012, around 70 managers helped plant oak, beech and birch WidespRead coRpoRate volunteeRing WoRldWide. there is a long tradition of corporate volunteering throughout the deutsche telekom group. the year under review was no exception. valuable contribution to society in hungary. in June 2012, some 200 magyar telekom employees and their families took part in Volunteering day. by the end of december 2012, 596 employees had been involved in seven different volunteering projects. a total of 4622 volunteer working hours were invested and their contri- bution to society was valued at huf 21.7 million (eur (74,366). the volunteering activities undertaken included renovation work in kinder- gartens, collecting waste, and preparations for a festival (e.g. building a locker for bicycles and building tables and chairs from reused material). in the context of the hungarian digital bridge program, whose aim is to provide people in remote villages with the possibility of using modern iCt technology and thus counteract the digital divide in society, magyar telekom participated in the local art festival at kapolcs, which took place between 27 July and 5 august 2012. 23 employees of the com- pany were involved in providing internet access and help for the guests at the event. volunteering network initiated in slovakia. in 2012 t-Systems Slovakia initiated its own volunteering network and organized a variety of activities in which a total of 113 employees were involved. the activities included helping in a dog shelter in spring 2012, participation in our town volunteering events in June 2012 (e.g. plan- ting trees and repairing buildings), blood donations, rebuilding a wagon for košice Children‘s railway, a St. nikolaus day for children in need, and collecting material things for families in need in december 2012. during the reporting period, Slovak telekom organized a volunteering weekend up in the high tatras where around 50 employees helped to clear roads in a nature preservation area. Volunteering weekends in the high tatras have been a tradition at Slovak telekom since 2004. national Day of the nature parks in bulgaria. in bulgaria globul‘s annual national day of the nature parks initiative motivated over 2,200 volunteers to collect more than 10 metric tons of waste from the country‘s natural parks.
society engagement@telekom Corporate volunteering & corporate giving 140 „building a Dream“ in Albania. „building a dream“ is an employees‘ team-building and community res- ponsibility program at amC, the ote group‘s albanian subsidiary. in 2012, the employee teams involved in „building a dream“ were assig- ned to implement childcare and development projects in a number of childcare institutions within a limited timeframe and budget. the teams had to develop a meaningful solution to a problem identified in the cho- sen institutions, thus improving the lives and contributing to the deve- lopment of these children. the three teams were made up of 13-14 amC employees and each one was assigned to work at one institution. most of the work, e.g. painting, assembling, dissembling, building, etc., was done out of working hours and by the team members themselves. furthermore, amC organized a clean-up campaign on a beach in Spille, kavaja. 150 employees took part and some also invited their friends or family to join in as well. a tree-planting and cleaning activity involving 50 amC employees was staged in december 2012. t-mobile for macedonia Foundation involved in humanitarian projects. in the reporting period the t-mobile for macedonia foundation was involved in the following humanitarian projects: for the tenth year in succession, t-mobile and makedonski telekom employees took part in the new year Caravan project, organizing plays and distributing presents – personal new year packages they had put together – to 1,000 needy children throughout macedonia during the last week of december. in 2012 t-mobile and makedonski telekom employees once again took part in a humanitarian giant Slalom where their participation fees were donated to an ngo known as „give us wings“, which helps people with dysfunctions, handicaps, rare diseases and special needs. volunteering Day in croatia. during the reporting period hrvatski telekom organized a volunteering day involving over 80 employees, with each one working for four hours to refurbishing the playground of a kindergarten that accommodates some 200 children. the company donated eur 3,500 to this project. t-mobile usA: huddle up community outreach program. t-mobile huddle up is t-mobile uSa‘s national community outreach and employee volunteer program that connects kids, primarily from sin- gle-parent families in high-need, urban communities, to positive people, places and programs, especially during the after-school timeframe. in the reporting period ten t-mobile huddle up service days were held. between June and September 2012, t-mobile embarked on its annual huddle up community outreach program, beautifying and donating to ten schools, community centers, and boys and girls Clubs around the country. in all 1,650 t-mobile employees were involved in this commu- nity work and performed a total of 13,200 hours of community service. $40,000 was donated in grants. projects all over the czech republic. t-Systems Czech supports a variety of projects in the cities it operates in. employees can propose and vote on which organizations are to be supported. in the reporting period 67 employees – around 10 percent of the company‘s workforce – were involved. the projects supported included the planting of trees in all cities where the company has an office, help for dear or elderly people and children, a charity football cup and fund-raising campaigns in prague, support for a children‘s project in Brno, IT support and a fund-raising campaign in České Budějovice, and support and IT training for elementary school teachers in mladá boleslav. 625 employees from t-mobile Czech participated in a volunteering project known as one day for people in need. the project enables employees to volunteer to work at an ngo for one day and get paid by the company. in many cases, the employees in question share their know-how with people from specific communities. cr intranet site keeps employees informed. telekom iberia has an intranet site that is used to publish reports on selected employee volunteering projects, details of all solidarity activi- ties and calls for help if some emergency or disaster occurs. during 2012 reports on two solidarity projects were published. operacion kilo, a campaign that involves donating food to the needy, is organized by a telekom iberia employee. another telekom iberia employee is involved in the turkana project, which aims to improve the health and nutrition of 800 under 6-year-olds attending 12 nutritional units in the turkana area. collecting pens for recycling to support Adiflor. a partnership with an association known as adiflor enables equipment to be purchased for schools in Cameroon through t-Systems france employees handing in their old pens for recycling and the money being donated to adiflor to purchase the school equipment. this recycling campaign is naturally a good move in sustainability terms as well. t-Systems france has built up a strong relationship with adiflor, e.g. through publishing one of their advertisements in the company‘s best practice magazine which is distributed to all its customers.
society engagement@telekom Corporate volunteering & corporate giving 141 1,000 Days for charity in the uk. every t-Systems employee is permitted one day per year to dedicate to helping a charity of his or her choice. a simple system for booking the time has been devised so the number of days that charities have been supported can be easily recorded. employees who give their time to charity can voluntarily blog about their day of helping on the t-Systems intranet. to date, nineteen charities have been assisted across the uk, some of these by multiple employees. chRistmas chaRity activities in poland and austRia. Christmas is traditionally a time of giving, and deutsche telekom emplo- yees are no exception, as the following examples show. a Christmas Charity auction organized by ptC, deutsche telekom‘s polish subsidiary, for the 11th time raised around eur 35,000 for ngos working to help children from dysfunctional families or communities. in october and november 2012, 90 employees and their children took part in art and craft workshops where they designed and made 60 cuddly toys and 40 works of art or crafted items. they were auctioned off in the first half of december 2012 at the Christmas Charity auction where employees could also offer „gifts full of passion“, e.g. a free din- ner or babysitting evening. around 1000 employees took part in the auction and ptC doubled the amount of money raised. christmas campaign in collaboration with DebrA. for Christmas 2012, t-mobile decided to support the work of the debra austria self-help organization for „butterfly children“ instead of giving Christmas presents to business partners and employees. „butter- fly children“ are children whose skin is as sensitive as the wings of a but- terfly because of a serious illness. even the slightest friction can cause their skin to break out in painful blisters or tear open completely. the t-mobile seasonal punch stand also toured through austria for the first time during the Christmas season, earning more than eur 5,000 that went to help those affected. the donations are being used to help develop a therapy for the serious skin disease, eb (epidermolysis bull- osa). neW donation policy and employee donations. in 2011 we revised our donation policy in consideration of our Cr strat- egy. the new policy was approved by the group board of management at the end of november 2011. the policy provides guidelines for our company‘s donation activities, laying the foundation for corporate volun- teering and corporate giving activities in the context of engagement@ telekom. under the engagement@telekom program, telekom donates a total of eur 250,000 each year to non-profit organizations for which our employees volunteer. employees donate to people in need. our employees also initiate a number of their own donation campaigns. a total of 27 charities in germany were presented a donation this year by telekom customer service to help in their work. the management had given employees the opportunity to support a charity of their choice from their region. Customer service employees throughout germany were able to distribute a total amount of eur 40,000. recipients inclu- ded the deutsche krebshilfe organization to fight cancer, the bethel hospice for children and young people, the Vestische klinik hospital for children and young people in datteln, and the kinder hannover e.V. organization for children with cancer. employees of the telekom Shop gesellschaft had the chance to donate a specific amount based on revenues generated to a non-profit organi- zation for the first time in 2012—a total of eur 30,000. telekom emplo- yees also donated proceeds from a party in the amount of around eur 6,000 to day care centers in bonn, while other employees held a bake sale where they earned eur 752 that went to support the „yes, i can!“ initiative. many employee donations also went to the dkmS, the german bone marrow donor center, with which telekom has been working for many years. employees in oldenburg donated the proceeds from an emplo- yee party in the amount of eur 3,030 to dkmS and apprentices in ber- lin donated eur 500. one employee and his family rode their bikes on a bike tour from bonn, germany to portugal and earned eur 3,600 in donations for dkmS. the bike tour was sponsored by telekom under the engagement@telekom program. donating time and money to those in need. throughout the group deutsche telekom subsidiaries made donations and employees gave time or money to help the needy in their local com- munities. big donations to greek ngos. for the 13th consecutive year, Cosmote offered a share of the revenues from the new year‘s SmS & mmS to ngos for children. this Custom of love SmS & mmS Campaign resulted in a donation of eur 320,000 to nine ngos. for the 10th consecutive year, ote donated part of the revenues gene- rated from voice calls on specific dates during the holiday season in 2012 and three ngos – one of them consisting of 10 charitable non- profit organizations – received a total sum of eur 230,000 as a result.
society engagement@telekom Corporate volunteering & corporate giving 142 ngo donations from customers and employees in poland. ptC continued its cooperation with ngos in poland in providing a dedi- cated text messaging service that enables its customers to donate money to charity projects. in 2012 ptC cooperated with 20 ngos. last year ptC‘s customers donated approx. eur 1 million. SmS charity cam- paigns are provided free of charge for the ngos, and 100 percent of the collected resources are always distributed to the beneficiary. the company‘s „together for others“ campaign allows employees to donate money to projects of their choice by having the money deducted straight from their paycheck to the united way poland foundation. in 2012, the company collected donations totaling more than eur 20,000. through this initiative ptC and its employees have contributed to the financing of over 60 different projects run by the united way poland foundation. pc and notebooks donated in czech republic. t-Systems in the Czech republic donated three desktop pCs and one notebook to an organization supporting the deaf; 15 desktop pCs to Říčany u Prahy High School and 20 desktop PCs and 20 notebooks to mladá boleslav School to promote higher educational standards through new multimedia projects; and 12 desktop pCs to bernartice basic School to open up new educational opportunities for the pupils there. various donation activities in hungary. in december 2012 magyar telekom employees and members of the Sustainability media Club the company set up sold home-baked coo- kies. magyar telekom matched the money raised in this way and gave a total of huf 6,037,695 (more than 20,000 eur) to the SoS Children‘s Village foundation. the money raised will go towards funding a therapy room in one of the facilities of the foundation in the kecskemét region. during 2012, magyar telekom launched three donation campaigns focusing on specific themes of particular relevance to life in hungary today: sustainable cities, the power of communities, and sustainable education. furthermore, magyar telekom‘s donation line gives individuals the means of supporting a cause that is important to them. globul: bulgaria‘s biggest corporate donor. during the reporting period, globul‘s social commitment was once again demonstrated by its donations, which were so generous that glo- bul won a competition for bulgaria‘s biggest corporate donor in two categories (largest amount of financial grants and most generous donor). over the past year, globul has invested over eur 500,000 in programs and initiatives in the key areas of environmental protection, education and social development. chocolate Auction in macedonia helps visually impaired youngsters. pozitivo, the t-mobile for macedonia foundation and tea moderna orga- nized the third Chocolate auction in Skopje. 400 guests participated and placed bids for unique chocolate exhibits that were made espe- cially for this occasion. the funds from the auction were donated to the reconstruction of the dimitar Vlahov School for visually impaired child- ren and young people in Skopje. the t-mobile for macedonia founda- tion donated a total of eur 5,000 to the auction and a further eur 3,000 for braille machines. another eur 5,000 were raised through the Chocolate auction itself and an auction of pictures so the sum of eur 13,000 was ultimately donated to the dimitar Vlahov School. „together we are stronger“ – annual donation project in croatia. hrvatski telekom runs an annual donation project entitled „together we are stronger“. it encourages the company‘s employees to propose ideas for appropriate donation projects. the best ones are selected in line with the group‘s Cr action areas of „Connected life and work „, „Con- nect the unconnected“ and „low carbon society“ and then communica- ted to the public via tV commercials, social networks, etc. the project started at the beginning of may 2012 when all employees were invited to propose suitable projects over a period of two months. a total of 125 projects were proposed and 20 selected. the tV campaign featuring these donation projects commenced in december 2012 and ran until mid January 2013. Austrian subsidiaries collect donations for AiDs liFe and the vienna food bank. t-mobile austria set up an austrian donation hotline for the third time on may 19, 2012 to benefit the aidS life organization. profits went to sup- port a life ball donation campaign for the Clinton health access initia- tive (Chai). the organization‘s goal is to reduce the number of babies born with hiV in uganda and Sambia as far as possible by 2015. the life ball is a charity event held in Vienna to support the fight against hiV and aidS. t-mobile austria has been supporting the event as the main sponsor for four years and plans to continue its involvement in 2013. t-Systems austria has been supporting the Vienna food bank wiener tafel since 2010 in line with its guiding principle „i am t—Count on me.“ the organization collects consumer goods from industry and retail that cannot be sold due to minor visual defects and brings them to people who need them the most, to more than 9,000 socially disadvantaged
society engagement@telekom Corporate volunteering & corporate giving 143 people at 80 social facilities like homeless shelters, refugee shelters and shelters for women and children. up to 3 tons of high-quality food and other „survival goods“ are delivered every day. that‘s five fully loaded delivery trucks driven by volunteers. we donated eur 10,000 for each goal scored by the german national team during the 2012 european football Championships, a total of eur 100,000. in 2012, t-Systems austria collected goods to sell at the largest flea market in Vienna to benefit the Vienna food bank. they made a total of eur 1,323 on four different days. wiener tafel used the money to help cover fuel costs for 2013. t-systems malaysia Jumble sale for charity. in June 2012 t-Systems malaysia employees initiated a charity jumble sale over three days and successfully collected rm 11,124 (eur 2,799) from the sale of home baked cookies, cakes, a variety of rice dishes and noodles as well as items such as bags, books, balloons and many more. 100 percent of the proceeds from this event went to the malaysia asso- ciation help for the poor terminally ill. this money was used to purchase wheelchairs and other medical supplies and equipments to support the needy across hospitals in malaysia. the „millionen lauf“ chaRity Run and otheR campaigns to benefit ein heRz fÜR kindeR. Staying in shape and helping others is the idea behind the millionen lauf charity run with which deutsche telekom generated one million euros in donations to benefit the childrens‘ charity organization, ein herz für kinder, from october through december 2012. anyone could sign up to participate via a free app to support the common goal - to run a total of one million kilometers together while the campaign was under- way. more than 41,000 people signed up throughout germany. that made the millionen lauf the largest charity run to have ever been held in germany. deutsche telekom donated one euro to ein herz für kinder for every kilometer run. participants could keep track on the campaign website of the current number of kilometers that had been run, which helped them stay motivated. the bundesliga Stiftung soccer league charity foundation supported the campaign as well. they logged every kilometer that the pros from all of the clubs ran between the 8th and the 16th game day on the telekom initiative site. the distance totaled around 20,000 kilometers and the bundesliga Stiftung foundation dona- ted an additional euro for each kilometer run by the athletes. the play- ers from fC bayern and the telekom baskets bonn as well as boxing world champions Vitali and wladimir klitschko participated in the millio- nen lauf run as well. other campaigns to benefit ein herz für kinder. deutsche telekom supported the children‘s charity organization, ein herz für kinder, with other campaigns in 2012 as well. 19 teams from 13 countries played each other at the international telekom employee tournament in Cracow, the world Cup united, on the occasion of the 2012 european football Championships. deutsche telekom donated eur 100 for each goal scored to ein herz für kinder for children‘s projects in poland and ukraine. the teams scored a total of 169 goals and deutsche telekom rounded its donation up to eur 20,000. instead of handing out gifts to participants on Capital markets day for investors and financial analysts, deutsche telekom made a eur 2,000 donation to ein herz für kinder. deutsche telekom donated a total of eur 1.2 million to ein herz für kin- der in 2012. the money was presented to the organization at the zdf broadcasting network‘s gala charity event. Several hundred telekom employees also worked at the event to accept calls for more donations. Award for the 2011 cell phone recycling campaign. deutsche telekom was presented with the internationally renowned ethical Corporation responsible business award in June 2012 for its cell phone recycling campaign, where the company generated dona- tions totaling eur 1.5 million within the context of a germany-wide com- petition, collecting around 600,000 used cellphones. the company won first place in the best Consumer engagement category. telekom was the only international iCt company to win an award in one of the 13 categories. chaRity Runs in euRope bRing big donations. Charity runs are a popular fund-raising activity, combining the fitness- enhancing fun of a run with doing something for a good cause. in november 2012, 510 ote and Cosmote employees ran the 30th athens Classic marathon or the 5 or 10 km races. for every emplo- yee kilometer run Cosmote promised to donate a specific sum to the athens public nursery. in all, this charity run resulted in a donation of eur 27,000, which will be used to buy 27,000 meals for children from 600 undernourished families in 47 athens primary schools. in hungary, magyar telekom organized a charity run with the employees who took part in this Vivicittá raising money for the SoS Children‘s Village. the total amount donated was calculated by multiplying the number of kilometers run by each employee by 100 hungarian forints.
society engagement@telekom Corporate volunteering & corporate giving 144 in poland, ptC employees took part in a „t-mobile around the world“ campaign in July and august 2012. the amount of money donated depended on the distance covered, either running or cycling. the 300 employees who took part covered 92,000 kilometers and raised a total donation of around eur 20,000. Since Slovak telekom‘s volunteering weekend took part during the european mobility week, the company was keen for its employees to walk a bit more and gave them the chance to take part in a prize competition to find out who walks the most in three weeks. depen- ding on the distance covered by the participants, the company promised to donate a sum of money to plant trees. employees could order a special pedometer or count their steps via a smartphone app. in all, the company‘s employees walked 15 million steps – a distance of 10,300 km – and the employees who walked the most got interesting prizes. as more than 10 000 km were walked, Slovak telekom will be planting around 600 trees in the high tatras in 2013. on march 11, 2012 t-Systems france supported and participated in a charity run in blagnac. the charity run was organized in support of mécénat Chirurgie Cardiaque enfants du monde, a humanitarian organization that enables children suffering from heart defects and cannot be treated in their home countries (for financial or medical reasons) to be operated on in france.
society engagement@telekom partnerships with ngos 145 partnerships with ngos. deutsche telekom focuses on long-term collaboration in its involvement in the community. we engage in partnerships that last for years with dif- ferent organizations such as the nummer gegen kummer youth counse- ling line, the telefonseelsorge crisis hotline, lebenshilfe (a non-profit organization for the mentally disabled) and the german bone marrow donor Center (dkmS). our employees play a key role in our community involvement. they volunteer regularly for a good cause, help organize events on site and donate money to different organizations. many employees are involved in mentoring programs or pass on their exper- tise at schools. these various initiatives are concentrated at the group under the umbrella platform, engagement@telekom. paRtneRship With dkms. Since we first started collaborating with dkmS ggmbh, the german bone marrow donor center, in 1994 we have conducted 197 company typing drives and one Christmas donation campaign. 7,465 telekom employees have been typed so far. we have donated over eur 410,000 for typing activities. in 2012, another 34 typing drives were held at 29 telekom sites in ger- many and one was held in poland for the first time as well. a total of 1,293 employees registered with dkmS in 2012. the seven-thousandth telekom employee, from gelsenkirchen, registered with the bone mar- row bank in october 2012. thanks to the stem cells donated by 64 german employees, patients were given a new chance at life. each year‘s „life savers“ are recognized on Volunteer day on december 5th for their dedication. the collaboration will celebrate its 20-year anniversary in 2014. our goal is to have at least 10,000 potential telekom life savers registered by that time. successful blood dRives. deutsche telekom has been supporting the german red Cross (drk) blood drives since 1985. we have conducted more than 330 drives at different sites in germany since entering into the cooperation, and have been able to collect considerably more than 18,000 blood donations. the german red Cross presented telekom with the helping hands plaque from the red Cross blood drive service in december 2012 to say thank you for decades of support for the red Cross blood drives. we will continue our blood drive activities in 2013. numerous international telekom subsidiaries support blood drives as well: in greece the ote & Cosmote blood donation program produced a total of 2,845 units in 2012. in romania 70 romtelecom employees from bucharest gave blood in the first campaign in July 2012 and 65 employees in the second campaign in november 2012. in bulgaria the deutsche telekom subsidiaries globul and germa nos organized a blood donation campaign for employees in coope- ration with the bulgarian blood association and the national Center for hematology and blood transfusion. 50 Crnogorski telekom employees donated blood in a campaign organized in may 2012 in partnership with the montenegro institute for blood donations and the montenegrin red Cross. in Slovakia 32 t-Systems employees also donated blood. paRtneRship With the lebenshilfe oRganization. our employees breathed life into our partnership with the german asso- ciation for people with mental disabilities, lebenshilfe für menschen mit geistiger behinderung e.V., during the reporting period through various corporate volunteering activities. other departments also supported the lebenshilfe aid organization once again in 2012 within the scope of our Social days. the campaign launched in the fall of 2012 by the berlin training center is new to the initiative. the campaign will devote around 500 activity days to the lebenshilfe organization. one group of trainees from our cyber team conducted computer training courses for lebenshilfe in october 2012, for example. the trainees also helped set up and deco- rate the Christmas market in december 2012. more activities have been planned, including building a raised garden bed and helping with reno- vations. representatives from the lebenshilfe organization thanked the trainees from the berlin training center by running a juice bar for the trai- nees at the center‘s health day event on november 13, 2012. we plan to continue our partnership with the lebenshilfe organization in 2013.
society engagement@telekom partnerships with ngos 146 multifaceted paRtneRships. deutsche telekom engages in volunteer activities in collaboration with a number of partners. these partnerships form a central pillar in our engagement@telekom program. our employees‘ volunteer activities breathe life into these partnerships. below you will find some examples of partnerships, some of which have been going on for years now. germany. employees collected a total of 246 packages, which our collaboration partner then sent to romania and bosnia-herzegovina where they were given to children in need at orphanages, hospitals, schools and in poor neighborhoods. the campaign was conducted under the patronage of german federal minister for family affairs, kristina Schröder. collaboration with nummer gegen kummer. many telekom employees in germany traditionally support our partner- ship with the nummer gegen kummer organization, which provides a helpline for children, young people and their parents going through difficult life situations. our employees volunteer to man the helpline and provide assistance to the people calling in. support for telefonseelsorge crisis hotline. telefonSeelsorge, the crisis counseling helpline run by the Catholic and protestant churches in germany, is there to help callers in crisis situa- tions. more than 7,000 extensively trained volunteer advisors, including numerous telekom employees, make sure that the hotline is available 24 hours a day. we have been supporting the hotline for people in dist- ress since 1997 by providing free numbers and special services. partnership with Achse e.v. we have also been involved in a partnership with the allianz Chroni- scher Seltener erkrankungen (aChSe) e. V. alliance for rare diseases for many years now. the eva luise and horst köhler foundation presented the eur 50,000 eva luise köhler award for research on rare diseases in cooperation with aChSe e.V. for the sixth time at telekom‘s berlin representative office on february 28, 2013. christmas campaigns to benefit partner organizations. many international subsidiaries donated to telekom‘s partner organiza- tions or volunteered their time in other ways during the 2012 Christmas season as well. penalties for high-emissions company cars: telekom employees in germany decided which organizations would receive donations totaling at eur 300,000 from the proceeds earned from penalties for choosing high-emissions company cars. a total of around 6,000 employees voted for which organizations would receive the dona- tions. the kinderzukunft foundation‘s christmas present campaign: t-Systems supported the Christmas present campaign organized by the kinderzukunft children‘s organization in 2012 and set up collec- tion centers at the front offices of different locations throughout christmas present campaign with soldiers from the german military: telekom apprentices from Cologne packed a total of 600 Christmas presents for seniors in need in a campaign held in colla- boration with soldiers and civilian employees of the german military. suppoRting the geRman foundation foR integRation. deutsche telekom supported the grant and mentoring program, „go your way,“ which was launched by the deutschlandstiftung integration (german foundation for integration) in early 2012. the goal of the pro- gram, which is being conducted under the patronage of Chancellor angela merkel, is to promote the integration of young, talented people from immigrant backgrounds. up to 150 grants are presented each year for a period of two years each. every participant is assigned a mentor who acts as a career consultant and opens doors to potential career paths. the grant program also includes individual coaching, topic work- shops, an internship job market and networking events. telekom helps the german foundation for integration design program content and pro- vides assistance under a technology partnership. in addition to provi- ding infrastructure, telekom played a significant role in setting up the foundation‘s website. living paRtneRships thRoughout euRope. increasing pupils‘ awareness on environmental protection in greece. an important objective for ote and Cosmote in 2012 was to increase pupils‘ awareness of environmental protection. to this end, ote and Cosmote supported educational initiatives through the establishment of strategic partnerships with two ngos (Callisto-environmental organiza- tion for wildlife and nature and philodassiki-the union for the protec- tion of forests in athens). these partnerships relate to environmental educational programs for school communities, particularly with regard to forest and wild life protection. romtelecom supports breast cancer campaign. as in the past ten years, romtelecom was again involved in a health- related project through its support for the Center for breast Cancer dia- gnosis (renasterea). in the reporting period alone, 4,631 women benefi- ted from free consultations, mammography and ultrasound examina- tions. 92 of the women were company employees.
society engagement@telekom partnerships with ngos 147 new t-mobile Austria cooperations. the welfare organization Volkshilfe‘s new campaign, which is being sponsored by t-mobile austria, focuses on the topic of poverty in austria and addresses the issue of nutrition as well. experts state that eight per- cent of the austrian population do not have enough money to buy good, healthy food. the new campaign was launched throughout austria on december 1, 2012 with posters, the new tV ad and a new radio ad run on different media in austria. donations will be passed on to people suffering from severe poverty via local Volkshilfe offices in austria (state organizations, community and local groups, volunteer employees, social help centers). t-mobile austria sponsored the 3rd austrian Social business day on march 15 and 16, 2012, and presented its sponsorship program for refugees there. 45 companies, non-profit organizations and social entre- preneurs presented their projects at the cooperation market, and 170 participants discussed corporate collaborations. during the event, the school student project „get2gether“ was brought to the attention of t-mobile austria. the aim of the project is to host joint activities to make it easier for young refugees to get to know austrians in the same age group and encourage their understanding of each other. for example, t-mobile austria organized a soccer tournament as part of the 2012 get2gether program, bringing together 32 young austrians and refugees. t-mobile extends collaboration with war child to end of 2014. in november 2012 t-mobile netherlands extended its collaboration with war Child, a charity that supports children in war zones, for another two years. for years t-mobile has been the main sponsor of war Child, working with this charity to strive towards a better future for children affected by war. t-mobile offers financial support to projects in Sri lanka in which children participate in programs to help them deal with their difficult experiences. besides this, t-mobile enables children in various program countries to communicate with each other via new media. t-mobile con- tributes actively in finding new ways to use iCt and media in reaching more children. t-mobile also sponsors all of war Child‘s phone services – in the netherlands and abroad. that means more funds can go towards this work for children and young people affected by war. t-systems czech: Free marketing advice and support for ngos. t-Systems Czech provides 100 hours per year of free pr and marketing advice to three ngos it cooperates with, e.g. ratolest brno, a non-profit organization responsible for social contacts and care for children from non-functional families. in 2012-13 the company‘s marketing depart- ment is also supporting one ngo in their applications for grants. public housing 3.0 – connected neighboRhoods help close the digital divide. in order to help close the digital divide, t-Systems austria launched the public housing 3.0 project in 2012 in collaboration with the Vienna margareten district and the operator of the austrian social media plat- form, Sankt onlein. the public housing 3.0 project provides the mostly low-income residents of the körnerhof housing area and neighboring facilities like the local youth center with access to state-of-the-art infor- mation and communications technology. for the project, t-Systems set up a container equipped with multimedia technology, the t-Systems media box, at the housing area as a teaching and communications center. t-Systems employees have been volunteering there as part of our corporate volunteering activities, conducting training courses for residents including computer courses for women and basic word and excel training. by november 2012, more than 250 of the 3,000 resi- dents had attended courses, particularly women and young people. t-Systems launched the www.koernerhof.at information and social media platform to accompany the project. Some 200 people have sig- ned up on the platform so far. the platform helps connect people in the neighborhood and provides local information like programs and regist- ration forms for media box training courses as well as information on doctors, childcare and events in the area. sponsoRship pRogRam foR young Refugees in austRia. lobby.16@t-mobile—“learning pathways“ project extended. t-mobile austria teamed up with lobby.16 to extend the „learning pathways“ project. for the first time the company conducted a module in 2012 in which young refugees can learn the skills they need to attend a vocational training program. the six-month education program inclu- des german, english and mathematics courses and is supplemented by sector-specific training. at t-mobile austria, this involves product trai- ning, communications and sales training as well as internship days at the stores and in customer service. in 2012, t-mobile helped four young people prepare for vocational training as a retail sales assistant with an emphasis on telecommunications and as office administrators. the lobby.16 association received the Sozial marie award on may 1, 2012, in recognition of its dedication to the vocational and social integ- ration of young refugees living in austria with-out relatives. other com- panies have also decided to adopt the program, which was enhanced by lobby.16 and t-mobile austria.
society engagement@telekom partnerships with ngos 148 basic it skills for refugees. as part of its collaboration with lobby.16, t-Systems austria conducts computer courses spanning several weeks for young refugees. between 2010 and 2012, t-Systems taught basic it skills to more than 70 young refugees. in addition to it training offers, t-Systems austria also provi- ded lobby.16 with laptops. the projects included the restoration of cultural and religious monu- ments in mrtnik and the creation of pools to support amphibian popula- tions in Strelna and kostan. the t-mobile fund for the regions received 115 grant applications and distributed a total of Czk 2 million for suita- ble projects in the louny district and hradec kralove region. sustainability funds in centRal euRope. during the reporting period the t-mobile companies in austria and the Czech republic supported sustainability and environmental projects with grants from their sustainability-oriented funds. environment and sustainability fund at t-mobile Austria. our non-profit t-mobile environment and sustainability fund (tun fund) supports projects that make a contribution to energy efficiency and cli- mate protection, the environmentally conscious use of iCt technology and the protection of the environment, nature and endangered species. under the slogan, „Sharing commitment,“ the tun fund grants prize money to projects that use iCt to develop creative solutions to environ- mental and sustainability problems. the fund supported the following projects during the reporting period with a total of eur 50,000 in prize money: CSi: Styria Climate Safety investigation Smartphone app for www.naturbeobachtung. atklima[trick], an animated film competition for young people on the topic of climate change CSi: Styria Climate Safety investigation was selected as the best project in an online vote. the project concept is to teach students about climate protection, such as how to reduce energy use. the students then pass on the information to others. they tell their family about what they have learned and motivate their parents to do their part. Content is presented in media forms that are attractive to young people so that it can be trans- ported from the schools and into the students‘ private lives. 37 projects were submitted during the second call for submissions, which ended on november 26, 2012. the three winning projects were announced at a gala event hosted by the tun fund on april 24, 2013. for the first time, school student projects also received funding totaling eur 3,000 at the event. czech republic: grants for employees‘ and regional projects. in the reporting period the t-mobile fund for employees received 141 grant applications. an independent committee selected the 27 most worthy projects and supported them with grants totaling Czk 2 million. under the umbrella of t-mobile fund the company also staged four seminars for ngos focusing on public relations and human resources. around 100 representatives of foundations and civic associations lear- ned how to communicate with journalists to facilitate the dissemination of information about interesting projects, and how to select and moti- vate employees. these seminars are offered free of charge. Romtelecom: „WoRds huRt, don’t they?“. „words hurt, don‘t they?“ is a campaign that aims to draw attention to verbal violence, the consequences it has on young people‘s behavior, and solutions to manage the problem. launched on november 20 2012 by romtelecom and the Child helpline association, the company‘s part- ner for over a decade in projects dedicated to young people and child- ren, the campaign was triggered by the increasing number of violent situations children and young people are involved (either as victims or aggressors) and of related calls to the Child helpline. in addition, rom- telecom commissioned two studies whose findings revealed a higher degree of immunization to verbal violence on the part of children and young people, although it is generally recognized as a potential cause of serious physical violence. the campaign aims to offer instruments for managing violence situations and includes open meetings with adults and young people interested in obtaining more information about const- ructive solutions to approaching verbally violent situations. at the same time, the campaign offers a virtual center for information and recom- mendations (www.cuvinteledor.ro). a free e-book containing case stu- dies and general recommendations was published as part of the cam- paign in december 2012. “eaRly childhood development”: paRticipation in unicef pRoject. in early 2012 t-mobile macedonia started a partnership with uniCef for an „early childhood development“ project that aims to help all child- ren in macedonia to attain a more equal start in life. in macedonia only 22 percent of 3- to 5-year-olds attend kindergarten or some other orga- nized early childhood development program. the aim of the uniCef project, which t-mobile is co-sponsoring, is to raise awareness of the importance of stimulating cognitive and emotional development in the first five years of life, and to raise funds for early childhood development facilities. this is the first major uniCef partnership with a private-sector company in macedonia.
society engagement@telekom partnerships with ngos 149 engagement foR the heaRing-impaiRed in slovakia. supporting families with a hearing-impaired child. the endowment fund telekom with pontis foundation have long been devoted to helping the hearing-impaired through a variety of programs. in September 2012 a new grant program was launched for early inter- vention in the case of the hearing-impaired children. Such a program had not existed in Slovakia. families with hearing-impaired children of up to six years of age were entitled to apply for a grant, as were special- needs teachers who know how to work with hearing-impaired children and would be going into their homes to work with such a child. the pro- gram, which was set up because the most important time for achieving a positive change and improving the quality of life of the hearing- impaired is at an early age, aims to promote systematic and long-term education in families with a hearing-impaired child. Selected mobile teachers will regularly visit the family once or twice a week and work directly with the child at home. the advantage of such field work is that the child specialist also works with parents and siblings and naturally incorporates them into their work with the child. at the same time the activity uses work devices available in the home, which can then be used by the parents as well. all the costs are covered by the endowment fund telekom with pontis foundation. sign classes on the road. three sign language classes across Slovakia were offered in a roads- how. 20 people attended each free course in which the basics of sign language were communicated and a film shown about the hearing- impaired. music therapy for hearing-impaired pupils. Slovak telekom is supporting a music therapy campaign for pupils at a primary school for the hearing-impaired. percussionist eddy portella leads classes where hearing-impaired kids play the drums. Since they can feel the vibrations, this is a great chance for them to express them- selves.
society engagement@telekom disaster relief 150 disaster relief. natural disasters such as floods or earthquakes often have devastating effects on the people affected by them. they lose everything they have from one day to the next and are dependent on help from others. telekom has been working with the aktion deutschland hilft alliance of german aid organizations for years in order to provide direct, fast help to the people affected. we provide equipment and money right after disaster strikes. our employees are always ready to help people who have been affected by floods or earthquakes. collaboRation With aktion deutschland hilft aid oRganization. telekom has been working together with the aktion deutschland hilft alliance of german aid organizations for years to provide aid to victims of natural disasters. in 2012, we once again supported the organization by donating eur 20,000 to help with reconstruction in haiti after the disastrous hurricane Sandy hit the country. birgit klesper, Senior Vice president for group transformational Change & Corporate responsibility (gCCr) at deutsche telekom, became a member of the alliance‘s board of trustees in may 2012. disasteR Relief in montenegRo and Romania. a severe snowstorm hit montenegro and romania in february 2012. telekom montenegro responded by donating eur 10,000 to the monte- negrin red Cross and installed a donation line where a euro would be donated for every call received. in all, the sum of eur 13,269 was coll- ected in the month the donation line was in operation. besides, some 50 of the company‘s employees helped to clear roads in front of the ins- titute for public health in podgorica, the main hospital and the company‘s headquarters. with many people cut off by the snow, mobi- les were often the only means of communicating with the outside world. here, the company‘s network maintenance teams worked round the clock to ensure services functioned properly or were restored. their brave efforts were recognized by the montenegrin public and the country‘s media. when the severe winter weather struck romania, romtelecom and Cos- mote romania offered material support to the „romania needs you“ campaign. romtelecom and Cosmote romania collaborated with pro media group to deliver over 18 tons of food and materials to 13 affected communities. thousands of people in the counties of buzau, Vrancea and ialomita benefited from the help offered by the two companies, e.g. basic survival foods and other goods delivered even by helicopter to the most isolated areas. employees from both companies even drove or staffed eight off-road jeeps and two trucks to transport food to commu- nities badly hit by the snow. romtelecom supported the romanian red Cross campaign through the foundation romtelecom for romanians. 55 tons of food and water were distributed. helping victims of „supeRstoRm sandy“. when „Superstorm Sandy“ struck the northeast of the uSa in late octo- ber, the unprecedented flooding and wind damage left many people devastated. all the region‘s cellphone provider networks were damaged, leaving customers disconnected for varying lengths of time. t-mobile uSa helped in various ways to relieve the sufferings of Sandy victims. 14,000 pounds of food, 1,700 cleaning supply items, nearly 100 winter coats and some 250 pairs of gloves for school children, as well as a cash donation of $10,000 were given to the Community food bank of new Jersey. Since the people living on a badly hit long island peninsu- lar had no power for weeks after the superstorm and were thus unable to charge their phones, t-mobile uSa organized two coaches where people could charge their phones and watch tV and movies. last but not least, t-mobile uSa provided the american red Cross with hund- reds of cell phones and donated $100,000 to help with the organization‘s storm relief efforts. text-to-give opportunities were also opened up for t-mobile customers, with the company saying it would match the next $100,000 in donations. the fact that that sum was reached within two days triggered another $100,000 donation from t-mobile. in all, t-mobile uSa and its customers donated more than $850,000 to the red Cross relief efforts. pRactical assistance foR those in need in malaysia and montenegRo. at t-Systems malaysia the company‘s community engagement took the form of support for people struck by natural disasters, several orphana- ges, the poor, and terminally ill patients in hospitals across malaysia. a further example of the practical assistance offered to the educational sector by Crnogorski telekom came after a fire destroyed the building used by the faculty of fine arts in Cetinje: Crnogorski telekom made its own premises available to the faculty‘s students and teaching staff so that studies could continue.
society engagement@telekom media skills 151 media skills. telekom is dedicated to promoting media skills in society. the focus here is especially on showing children, young people and seniors how to use the new information and communications media safely, because the new media can help them make their lives easier and participate in the information society. this is one of the goals involved in our action area „Connect the unconnected,“ which we have set forth in our Cr strategy. examples of our activities include the telekom@School project, our col- laboration with the „internet mentors sharing experience“ project laun- ched by the german federal ministry of economics and technology, data privacy projects at schools and computer training courses, which we offer in cooperation with the lebenshilfe organization. we launched several campaigns revolving around the european year for active aging and Solidarity between generations in 2012. in addition to initiating the competition, „The Internet‒it‘s not a question of age,“ we also supported the heroes with heart campaign and offered training courses for seniors, like the one conducted at our telekom Shop in frankfurt. in february 2013, telekom held a panel discussion on „digital lear- ning—smart learning“ at our berlin representative office. at the event, which was part of the telegraphen_lunch series, experts discussed the opportunities and risks involved in increasingly digital teaching. one of the main points of the discussion was how teaching methods at schools need to be improved by adding more digital content in view of changing learning patterns—an issue that telekom has been addressing for years in different projects such as telekom@School. the „Surfing together“ convention was held at telekom‘s representa- tive office in march 2013 in the context of the european get online week. the event was addressed to people who volunteer or work full- time directly with people who have never used the internet or do not use it very often. participants learned methods that they can use to teach the people they work with how to use the internet safely and responsibly. the convention was sponsored by the german federal ministry for family affairs, Senior Citizens, women and youth (bmfSfJ) and by the german federal ministry of food, agriculture and Consumer protection (bmelV). fRee inteRnet access foR educational institutions. during the reporting year, we extended our offer of free internet access within our telekom@School initiative. the project has enabled schools without or with slow internet connections to apply for a broadband line; depending on local service coverage, it offers a speed of 12 mbit/s instead of the previous 6 mbit/s. there was no charge for the switch-over or for subsequent use of the internet. telekom also gave each school licenses for its new child pro- tection software. we also offered to upgrade the connections of all schools in VdSl expansion areas to VdSl at reduced rates. VdSl enables data transmission speeds of up to 50,000 kbit/s. deutsche telekom has invested a nine-figure sum since the infrastructure project was launched and has equipped some 34,000 general and vocational schools in germany with free online access. in greece, for example, Cosmote offers free, wireless broadband inter- net access to schools on remote islands and in remote regions through its Surfing the world program. the company installs the required 3g-enabled devices (desktop pCs, wlan routers, multi-functional devices and webcams) at schools to provide the children and teachers with fast internet access. in 2012, more than 1,200 students and teachers from 46 schools throughout greece benefited from the 240 devices that were donated as part of this program. Cosmote has installed wireless internet access at numerous schools with a total of more than 3,000 students since the program was first launched. Crnogorski telekom, deutsche telekom‘s montenegrin subsidiary, provides free adSl internet connections to elementary and secondary schools in montenegro. the company‘s goal is to improve both theoreti- cal and practical pC and online skills, raise awareness of the signifi- cance of the internet and promote the information culture in montene- gro. a total of 150 schools participated in the program. the agreement made with the montenegrin ministry of education and Science has been extended.
society engagement@telekom media skills 152 data pRivacy in the classRoom. telekom employees continue inteRnet mentoRing pRoject. with the completion of the federal project sponsored by telekom, „internet mentors sharing experience,“ telekom employees in hanover moved their mentoring activities over to the Sharing experience associa- tion. there, they continue to pursue their mentoring activities, helping older people and people from immigrant backgrounds take their first steps online. by late 2012, some 175 telekom employees had decided to get trained as internet mentors. the federal project ended in late 2012 after three years. telekom continues to support internet mentoring under its engagement@telekom program. emacedonia foundation donates thRee e-classRooms. in the reporting period the emacedonia foundation launched a new program and donated about eur 50,000 to encourage the develop- ment of the information society. one of the program‘s highlights was the donation of three fully equipped e-classrooms at three locations around the country. these e-classrooms enable a total of 300 socially vulnera- ble people to obtain basic computer skills free of charge, e.g. learning how to use word, excel, e-mail and the internet. these skills can help those attending the e-classes in getting a job and in their everyday lives. e-bonton: helping to pRomote good manneRs in e-communications in macedonia. in recent years, social networks, and in particular facebook, have become very popular in macedonia. unfortunately, online behavior is not always what it should be. this is why the e-macedonia foundation has launched an e-bonton project with the aim of promoting good man- ners in online communications and raising public awareness of how best to communicate via social networks. the program involves the creation of an e-bonton manual for electronic communications, with anybody who is involved in online communications able to get involved. this manual is expected to consist of a set of rules for ethical conduct and communications. the project is also supported by the ngo meta- morphosis, the youth education forum and the School of Journalism and public relations in macedonia. the dangers of using the internet, data privacy and necessary security measures are all topics of four video spots that the telekom foundation filmed together with students from the „interactive schools“ project. in the videos, students answer questions like „is it ok for me to be friends with my teacher on facebook?“ or „which private data is ok to post online?“. all of the videos can be seen on the www.teachtoday.de plat- form, which was set up for teachers as well as parents who want to learn more about modern media. the goal of the project is to encourage students to use new media res- ponsibly. the project works to teach students how to anticipate the con- sequences of their actions, particularly in terms of social networks. activities to maRk the euRopean yeaR foR active aging. the european parliament proclaimed 2012 the european year for active aging and Solidarity between generations. against this back- drop, deutsche telekom launched various projects in 2012 to promote media skills among seniors: „internet‒it‘s not a question of age“ competition: in february 2012, telekom, the german association of senior citizens organiza- tions, bagSo (bundesarbeitsgemeinschaft der Senioren-organisati- onen), and klicksafe, the eu initiative for a safer internet, launched the competition, „Internet‒it‘s not a question of age!“. The competi- tion was conducted under the patronage of kristina Schröder, german federal minister for family affairs, Seniors, women and youth. around 150 participants submitted their projects in the „advice and training“ and „online offers“ categories with the chance to win between eur 2,000 and 5,000. the seven winners-including the winner of a special prize‐each received between EUR 2,000 and 5,000 to help finance their projects. telekom granted a total of eur 26,000 in prize money. heroes with heart competition: in 2012, telekom also sponsored the heroes with heart competition, where family members can nominate their grandparents for the „best grandparent in the world“ award. the competition was initiated by the german senior citizens organizations, deutsche Seniorenliga, and sponsored by telekom. one of the jury members who evaluated the submissions was a telekom representative. in 2012, a free presentation for seniors on the topic of „internet for late-comers“ was held as part of a pilot event at the highly-frequen- ted telekom Shop in frankfurt‘s shopping district. Visitors learned how to shop online, what mobile e-health solutions have to offer and how to use the internet to plan vacations. because of the tremend- ous response, the presentations were repeated in early 2013. additional presentations are planned over the course of 2013.
society eduCation 153 eduCation. education is one of the most important prerequisites for innovation and progress. we consider promoting talented individuals of all ages at the group as well as a broad-based commitment to education to be one of the keys to our long-term success. that is why we are very committed to enabling future generations to develop the skills they need, even beyond our company borders. with the „yes, i can!“ initiative, telekom helps strengthen the skills that enable children and young people to take on the challenges of their everyday lives and shape their lives successfully. for many years now, the key element of our educational commit- ment in germany has been the deutsche telekom foundation, which is one of the largest corporate foundations in germany. when it comes to vocational training and continuing education, we rely on collaborations with universities, scholarships and grants. in order to promote talent we support start-ups, sponsor Stem initiatives and help young people from disadvantaged backgrounds. for example, deutsche telekom supports the grant and mentoring program, „go your way,“ which was launched by the deutschland- stiftung integration (german foundation for integration) in early 2012. the goal of the program, which is being conducted under the patronage of Chancellor angela merkel, is to promote the integra- tion of young, talented people from immigrant backgrounds.
society eduCation “yes, i can!” initiative 154 “yes, i Can!” initiatiVe. the „yes i can!“ pRoject netWoRk. during the reporting period, we continued to successively promote net- working among the sponsored organizations and projects. as part of these efforts, we held the third „yes, i can!“ Cup in berlin in 2012. more than 250 children and young people from sponsored projects all over germany came to the capital and competed in 32 teams in the soccer competition. in addition to keeping track of the score, we also recog- nized fair play this year for the first time. the „yes, i can!“ initiative invited all of the highest scoring teams to attend a soccer game and a fair play workshop in berlin in november 2012. a total of 62 children and teen- agers attended the event. the initiative also launched the „look what i can do!“ competition. Children from the sponsored institutions had the chance to submit a photo, video clip or picture that they drew of situa- tions where they learned something new and interesting or discovered a new ability that they or someone else has. the three winners, who were selected by a jury and via online voting, were invited to attend a two-day photography workshop in berlin. un decade aWaRd. the „yes, i can!“ initiative received the un decade education for Sustai- nable development award on february 28, 2012, for the second time. the award is presented every two years. the chairman of the national committee, prof. dr. gerhard de haan, and the Secretary-general of the german uneSCo commission, roland bernecker, presented the award at an international workshop in bonn. at the workshop, experts from all over the world discussed a variety of topics revolving around education for sustainable development. with our „yes, i can!“ initiative, we fund projects in germany that help give children and young people from difficult social back- grounds greater confidence. we want to help them pursue their own educational and professional goals. in 2012, we also supplied fun- ding for various projects for children and young people from disad- vantaged areas; 123 of the projects submitted to the initiative were supported with up to eur 10,000. Since the initiative‘s launch in 2009, we have provided financing for over 350 projects, some eur 2.5 million in total. we will be making over eur 500,000 available again in the year 2013. our „yes i can!“ initiative was awarded the un decade education for Sustainable development award for the second time on february 28, 2012. the „yes, i can!“ initiative, an association founded the previous year by deutsche telekom employees, managers and board members, began working on projects officially in early 2012 and has been actively enga- ged in pursuing the work of the initiative launched by deutsche telekom in 2009 ever since. founding the association provides more leeway for support. the association hopes to be able to support more institutions and projects that encourage young people in germany through specific donation campaigns. the first member meeting was held in may 2012. 123 pRojects sponsoRed in 2012. a jury selected 123 projects from among more than 600 applicants in 2012 to receive support of a maximum of eur 10,000 each. the metho- dological focus was taking a peer-to-peer approach. projects in which children and young people take on mentoring and advisory roles or teach each other specific skills were particularly welcome. the projects addressed the focal topic creatively in a variety of ways. participants took part in mentor programs and different training courses, including qualification as nutrition and legal advisors, mediators and nature scouts. projects in which children and teenagers learned how to identify their own specific skills and then pass them on to others were conduc- ted as well. 2013 annual topic: Fairness and respect. the „yes, i can!“ initiative launched its fifth call for submissions in 2013. projects and institutions that are active in the community had the chance to apply for support from the initiative from february 20 through april 2, 2013. with this year‘s topic, „fairness and respect,“ the „yes, i can!“ initiative hopes to help people learn to appreciate and treat each other with respect, thereby preventing abusive situations.
society eduCation deutsche telekom foundation 155 deutsChe telekom foundation. the deutsche telekom foundation was established by deutsche tele- kom ag and now has a foundation capital of eur 150 million, making it one of the biggest business foundations in germany. it is dedicated to improving education levels in the Stem subjects (science, technology, engineering, and mathematics) throughout germany. the deutsche telekom foundation was among those who committed themselves to supporting young children in 2012. the deutsche telekom foundation and the little Scientists‘ house foundation held a competition for day care centers under the slogan, „forschergeist 2012“ (inquisitive minds 2012). the foundation is active in the following areas: early education, lessons and more, teacher training, promoting talent, and impetus. Forschergeist 2012 day care competition. with the forschergeist day care competition, the deutsche telekom foundation and the little Scientists‘ house foundation recognize edu- cators who work to educate very young children in the areas of natural sciences, mathematics and technology. the competition under the patronage of german federal minister at the time, dr. annette Schavan, ran from december 1, 2011, until march 16, 2012. day care centers throughout germany were encouraged to submit projects from the areas of natural sciences, mathematics and technology to win prize money. 25 projects out of 1,135 submissions were nominated. the five winning projects received eur 5,000 each. the winners included a long-term project that takes children through different ages in the his- tory of human development and a research project on sand. an additio- nal 15 day care centers received eur 3,000 each. because of the num- ber of high-quality submissions, the jury also decided to grant five spe- cial prizes of eur 2,000 each. the day care centers will use the prize money to continue to promote educational work in the fields of natural sciences and technology. Some eur 4.9 million went into project work in 2012. we were also able to create a reserve of more than eur 4.1 million for projects that have already been budgeted. in September 2012, materials were published for parents to give them tips on how to make use of and support educational opportunities for their children. an extensive handbook for parents will be published in fall 2013. the science–natuRe–knoWledge pRoject. the deutsche telekom foundation began training facilitators in 2010 as part of the Science-nature-knowledge project. these facilitators go on to train staff at day care centers throughout germany. a total of 650 facilitators had been trained by the fall of 2012. the foundation also donates course materials to the centers. these materials were develo- ped over the past few years by the Science-nature-knowledge project. new curriculum for training educators. the telekom foundation is planning to expand its activities to train edu- cators based on the curriculum for educators that was completed by the Science-nature-knowledge project in January 2013. expert meeting on cooperative project. once the Science-nature-knowledge project has been completed, the foundation is planning to conduct a cooperative project to promote the training of educators at vocational schools and universities in germany. a skills model focusing on improving educators‘ skills and their personal development was designed as the basis for the project. the model is not based on a particular subject so it can be used with different content and applied to various areas. the Stem skills are being used as an example. supporting the „interactive schools“ initiative. the deutsche telekom foundation initiated the „interactive schools“ project in 2005 as part of its „teaching and more“ focus. the project investigated the integration of new media into teaching and learning activities. teachers developed their own concepts for incorporating new media into the classroom at an initial four and then later at 42 secon- dary schools in the german states of north-rhine westphalia, hesse and Saxony. the deutsche telekom foundation completed the interac- tive Schools project at the end of the 2011/2012 school year. the parti- cipating german states are continuing the project on their own. „be a math Whiz“. the second facilitator meeting under the project sponsored by the tele- kom foundation, „be a math whiz“ was held at the freiburg university of education in november 2012. participants developed and tested class- room material modules for decimals, fractions and percentages at the two-day meeting. the goal of the project, which was launched in 2011 with funding of eur 1.4 million, is to research and develop lesson struc- tures, concepts and materials for low-performing students and their teachers for grades 5 through 10. the aim is to structure math classes in a way that is more individual and more effective. the project is being conducted in collaboration with technische universität dortmund,
society eduCation deutsche telekom foundation 156 freie universität berlin, freiburg university of education and westfäli- sche wilhelms-universität (wwu) münster. the project is scheduled to run for three years. in december 2012, the telekom foundation‘s board decided to launch the second phase of the project, which will run until 2016. the plan is to implement concepts and materials at secondary schools in the states of north rhine-westphalia, berlin and Schleswig-holstein. project partici- pants will also be developing material for solving practical problems in maths. competence centeR foR teacheR tRaining. the first annual convention of the german Center for mathematics teachers education (dzlm) was held at deutsche telekom‘s represen- tative office in berlin on September 21, 2012. more than 200 people attended the event. dzlm has been designed for educational staff at day care centers and math teachers as well as other facilitators who want to develop their skills. the foundation is planning to invest around eur 5 million in setting up and operating the center by 2016. the com- petence center started its activities in the 2011/2012 winter semester. the center‘s communication platform went online in spring 2012 and the first continuing education program started for the 2012/2013 winter semester. facilitatoR tRaining. the „lernen vor ort“ facilitator project, which was initiated by the ger- man federal ministry of education and research in collaboration with an association of more than 140 foundations, creates incentives for cities and districts to set up consistent, cohesive educational manage- ment structures. as the sponsor of the business, technology, environ- ment and science categories, the deutsche telekom foundation contri- butes concepts and materials from its projects Science—nature—know- ledge, Class kits, Junior engineer academy and doing math differently. the telekom foundation‘s involvement included financing three facilita- tor training courses during the reporting period. the facilitators were then each provided with a „class kit.“ teachers can use the experiment sets and course material to teach topics such as „air and air pressure,“ „sound“ and „swimming and sinking“ more effectively at elementary schools. those responsible for the project had conducted a total of 260 training courses in the 20 participating communities by September 2012. magenta sofa talks to Reflect sponsoRship activities Within the company. deutsche telekom foundation has been promoting involvement in edu- cation at regional events with the magenta Sofa talk series since spring 2011. the series of talks was continued in the cities of berlin, hamburg and darmstadt in 2012. the event was hosted in berlin on april 23, 2012, within the scope of the berliner Stiftungswoche, a week-long event presenting foundations, and was open to telekom employees as well as residents of berlin. dr. manfred balz, the then board member for data privacy, legal affairs and Compliance at deutsche telekom, and other well-known guests discussed the significance of being involved in the community for germany as a center of innovation. encouraging Stem junior staff members was the focal point of the discussion with t-Systems Ceo reinhard Clemens and hamburg‘s mayor, olaf Scholz, on September 3, 2012. niek Jan van damme, managing director of telekom deutschland and hesse‘s minister of education and Cultural affairs, nicola beer, explained in darmstadt on november 19, 2012 what needed to be done to drive science and research forward in ger- many. more events in the series have been planned for 2013. eveRyone needs education – education needs eveRyone. the deutsche telekom foundation and deutsche telekom sponsor employee volunteering at day care centers and schools under the „everyone needs education—education needs everyone“ project, which was launched in december 2011. in particular, employees are invited to volunteer in science, technology, engineering and mathematics pro- jects that go beyond every day activities at day care centers and schools and to apply for financial support from the foundation for their project. Seven projects were sponsored during the reporting period (as of nov. 2, 2012: since march 7). deutsche telekom employees went on excursi- ons to the odysseum, a science adventure park in Cologne, with the children and to the mathematikum, a hands-on maths center in gießen, and conducted fire safety workshops with training kits financed by deutsche telekom. the children learned about the benefits and dan- gers of fire at the workshops. the „everyone needs education-education needs everyone“ project will be continued in the coming year with a total sponsorship amount of eur 50,000. establishing moRe junioR engineeR academies. the foundation‘s support was scheduled for three years (2010-2013). even after the telekom foundation stopped actively participating in the project, the communities continued to use the „class kits“ during the second phase of the „lernen vor ort“ facilitator project, which will conti- nue until 2015. the goal of the Junior engineer academies is to show students in 8th grade and above what it is like to work as an engineer, scientist or researcher. partners of the Junior engineer academies include schools and universities as well as other regional partners from the worlds of business and science. the Junior engineer academy network currently
society eduCation deutsche telekom foundation 157 includes almost 40 schools throughout germany. the deutsche tele- kom foundation requested submissions for a competition to create fif- teen new Junior engineer academies during the 2013/2014 school year in order to spread the concept further. an expert jury selected the best concepts on march 22, 2013. the schools were accepted into the ger- many-wide Junior engineer academy network at the network meeting on april 26 and 27, 2013, in berlin.
society eduCation Commitment to training & development 158 Commitment to training & deVelopment. as one of the major vocational training providers in germany, we invest heavily in training programs for the young generation. we also set up external projects to facilitate access to the information and knowledge society for all young people. one important aspect of the training pro- gram is assuming social responsibility through activities such as partici- pating in the „responsibility wins“ competition. Responsibility Wins: moRe than 700 paRticipants. the internal telekom competition, „responsibility wins,“ was once again a tremendous success during the reporting period. more than 700 apprentices and students on cooperative degree programs from all over germany submitted some 80 projects for which they had voluntee- red. with the competition, which was held for the fourth time, telekom wants to recognize and encourage a sense of responsibility in its junior staff. at the awards ceremony in february 2013, a team from rottweil received first place for coming up with suggestions for improving bar- rier-free access at three telekom shops in the region. apprentices got into wheelchairs for their research, which was supported by the non-pro- fit bruderhaus diakonie foundation. a team from the nuremberg trai- ning center received second place. the team developed internet trai- ning courses for seniors along with course materials and offered these in collaboration with the Communications museum in nuremberg. third place went to four apprentices from bremen who conducted workshops at schools on how to use personal information safely in social networks and discussed cyber bullying with the boys and girls. pRomoting stem subjects at hftl univeRsity of applied sciences (hochschule fÜR telekommunikation) in leipzig. young people benefit from the many years of experience the group‘s own hftl university of applied Sciences (hochschule für telekommuni- kation leipzig) has in the field of youth mentoring. through a wide range of Stem initiatives, the university hopes to inspire children and young people to go for technical and science-based careers, professio- nal and management positions. it conducts hands-on projects to encou- rage children and young people to learn more about these career paths. student mentoring program for girls: the hftl youth mentoring program for female students began in 2012. the program is particu- larly targeted at girls from immigrant backgrounds. female mentors - accompany students from three leipzig schools for ten months and help them in their personal development and with any questions they might have about their career choices. the girls can gain their first hands-on experience within the scope of an extensive accompa- nying program. we also share our extensive experience with youth mentoring with our competitors. in 2012, we published a handbook about the mentoring program concept with recommendations on how other companies and organizations can get involved. student marketing at hftl university of Applied sciences in leipzig: hftl plans further expansion of its student marketing activities. the university launched or continued numerous projects in this area in 2012: the Junior engineer Academy: hftl opened a Junior engineer academy at three secondary schools in leipzig in cooperation with the deutsche telekom foundation. a total of 16 thirteen to sixteen year olds will study technological subjects there intensively in the next two years, giving them the opportunity to pursue their interest in Stem subjects. the foundation already sponsors 39 Junior engi- neer academies throughout germany. „Ask the frog“ kids university: the kids university, which was initiated at hftl in 2012, also gives kids a chance to have fun learning about natural sciences and technology. elementary students can experiment in these fields twice a semester under guidance and pursue their interest in these areas. technology Day: hftl and the telekom student marketing department held a technology day at the Schulpforte secondary school near the city of naumburg under the slogan „experience telecommunications.“ 8th through 12th grade students had the chance to get to know the university and overcome their fear of studying technology and computer science in hands-on experi- ments in labs set up especially for them. we also offered a field trip to a deutsche telekom company. hftl holds technology day throughout the year for different participants. leipzig Academy for school students: hftl successfully continued the leipzig academy for School Students program in 2012 with four lectures. Students in 9th grade and above can attend the lectures to learn more about natural sciences and engineering. special suppoRt foR disadvantaged young people. we take our corporate and social responsibilities very seriously at all levels of education. in 2012, we collaborated with the german federal employment agency to offer 119 young people the chance to start their careers in the „my chance to get going“ project. the program is particu- larly targeted at kids whose parents are on welfare. we are planning to continue the project in 2013 as well. education pRogRams facilitate connected life and WoRk. as part of its strategic goal of facilitating connected life and work, deutsche telekom promotes numerous education programs around the world, as these examples illustrate.
society eduCation Commitment to training & development 159 globul: geneRal sponsoR of gReen olympics competition. globul partners the green olympics organized by the educational por- tal akademika bg. this initiative aims to boost bulgarian school pupils‘ knowledge of environmental issues and to establish a „green culture“ among young people. in this context, globul sponsored a green olym- pics campaign from october to december 2012, which aimed to incre- ase bulgarian pupils‘ awareness of environmental topics. the nation- wide competition was open to 1st-12th grade pupils from all over the country. globul‘s summeR tRaineeship pRogRam. globul‘s annual summer traineeship program gives young and aspiring students a unique opportunity to acquire new knowledge and practical skills through working in a dynamic business environment. in 2012 53 young people took part in the program. idea goes app aWaRd in austRia. t-Systems participated as a partner of the austrian-wide school student and trainee competition, innovative youth, for the sixth time. the goal of the competition is to encourage creative potential in young people with talent and an interest in scientific research between the ages of 15 and 20. in 2012, young people interested in communications and techno- logy had the chance to submit their innovative app ideas in the areas of healthcare, energy and mobility. the t-Systems idea.goes.app award includes prize money in the amount of eur 5,000. out of the 26 projects that were submitted, the first aid live app idea developed by three young school graduates from Salzburg won the prize in 2012. first aid live is an efficient first aid application that makes it possible for potential helpers at the site of an accident to provide the best possible first aid by following the app‘s inst- ructions. deutsche telekom‘s bulgarian subsidiary, globul, is involved in a long- term program known as the globul hour, which aims to increase the educational and professional standards of young people. Some of the company‘s most valued professionals participate in the program by sha- ring their know-how with young people through a series of lectures and seminars. the initiative is aimed at telecommunications students at the technical university of Sofia and in may 2012, for example, over 400 students attended the lectures. during the reporting period, t-mobile Czech cooperated closely with a number of technical and economic high schools in a project where the company‘s employees, including the Ceo, shared their know-how with high school pupils by way of presentations and subsequent discussions. t-Systems Czech organized so-called smart grid classes for apprentices and high school pupils in prague. the activities included a tech-tour to friedrichshafen in germany where the participants were introduced to deutsche telekom‘s smart metering and smart grid solutions for the educational sector. t-systems slovakia: pRomoting ict education. in the reporting period t-Systems Slovakia undertook a number of acti- vities in cooperation with educational institutions with the aim of furthe- ring iCt skills. ict education in elementary schools: around ten of the company‘s employees taught pupils in iCt subjects (e.g. linux, windows, basic programming and internet safety) at four elementary schools in košice. t-system education Academy: t-Systems Slovakia has developed officially accredited lectures for around 11 iCt subjects and trained lecturers to deliver them to students at the technical university of košice, which recognizes the credit points gained by the students in these subjects. summer university (for the public) & evening university (for stu- dents): t-Systems Slovakia has been enabling iCt training courses for the public in the košice region by offering summer and evening university programs since 2006. in 2012 160 people successfully qualified from these classes.
society eduCation promoting talent 160 promoting talent. deutsche telekom supports talented students and innovative business ideas both within the group and outside. the purpose of telekom‘s hub:raum start-up incubator, which opened in 2012, is to help people who are starting a business get their ideas off the ground. numerous deutsche telekom subsidiaries also offer grant programs to provide talented students with the financial support they need. telekom staRt-up incubatoR helps get neW ideas to the maRket. in may 2012, deutsche telekom opened its own start-up incubator, hub:raum, to help people who want to start up innovative businesses get their ideas off the ground. at hub:raum, start-up teams can further develop their ideas in an „incubator“ environment and then introduce them to the market. people with experience in starting up businesses help them as mentors and telekom also offers seed funding of up to eur 300,000. interested start-ups can go to the hub:raum website and apply for the program. the program will take on around 10 to 15 start-ups each year. the first hub:raum accelerator program was launched in november 2012, an eight-week training program where start-up teams can develop their business ideas into business models that are ready to be financed. at the end of the program, the start-up teams presented their business models to selected potential investors and the hub:raum team. scholaRships suppoRt talented students. in several countries where deutsche telekom subsidiaries operate scho- larship schemes provide talented students with much-needed financial support. in bulgaria, for example, globul offers scholarships to ten talented students as part of its annual Scholarship program. the scholars receive monthly support up to graduation. if they perform well during the traineeship and vacancies are available, they are invited to join the globul team. in greece, the ote-Cosmote Scholarship program provides finan- cial support to first-year students enrolled at universities far from home. for the 11th consecutive year, this program is supporting first-year students at higher education institutions throughout greece, and for the first time in the major metropolitan areas of Cosmote have offered 20 scholarships of eur 15,280 each, and 26 attica and thessaloniki. for the 2012-13 academic year, ote and honorary distinctions worth eur 1,528 each. in november 2012 Cosmote romania offered five new scholarships to bring the total to 15 since 2010. the scholarship amounts to approx. 700 ron (approx. eur 150) per month and student for the whole duration of a student‘s university studies. in the same country romtelecom offered a number of scholarships to reward talented students and young people with leadership potential. three student scholarships were offered as part of the company‘s internship program through the romtelecom for romani- ans foundation. four scholarships were for students who performed outstandingly at the leaders School, the only one of its kind in romania. one scholarship was awarded so a romanian student could study at perrotis College in greece (as part of the ote Schol- arship program). moreover, romtelecom continued to offer students the use of voice, internet and iptV services at its own laboratory in the faculty of electronics in bucharest. in Croatia hrvatski telekom offered scholarships to the six best students at the faculty of electrical engineering and Computing. moreover, hrvatski telekom joined the zagreb rotary Club‘s kaptol scholarship program „Step into life“ and funded five scholarships for students without parents. So far, this has provided 121 scholarships for young people from children‘s and foster homes. in the third year of the t-Systems Slovakia Scholarship program six scholarships worth 1,400 eur each were provided for the academic year 2012/2013. the six students selected are all studying at univer- sities in košice, with two of them in their final year of studies. the aim of the program is to generate educational opportunities for talented young people from eastern Slovakia, to train skilled new professionals who are committed to the development of that region, and to raise young people‘s awareness of their regional identity and the opportunities for volunteer work. the program is targeted at university and college students from eastern Slovakia who are majoring in it and relevant fields, as well as high school graduates apply to study one of those subjects. in the reporting period t-Systems malaysia introduced a high achievers Scholarship program as part of the company‘s commit- ment towards developing an intellectualized society and shaping the network future for business. the program enables young scholars to pursue their tertiary education in universities throughout malaysia.
society eduCation promoting talent 161 providing scholarship for the best students studying at state universities as well as internships and employment opportunities at the company on graduation, the amC student scholarship program was run for the 11th time in the reporting period. this program helps to improve the quality of education and create sustainable human resources in albania. in the reporting period, 18 students (eight freshmen and ten others) were awarded an amC scholarship.
society SponSorShip 162 sponsorship. Culture and sports are two areas where society gets its innovative strength. they create a feeling of community, encourage communica- tion across borders and inspire people. we have been involved in the world of sports and promoting the cultural landscape in germany for years. in the meantime, we are among the lar- gest sponsors in these areas in germany. telekom‘s international subsi- diaries are also active in promoting culture and sports. this approach is an expression of how we see ourselves as an international company that accepts its corporate responsibility at all places where it does business. our cultural sponsorship activities are also focused on promoting music and fine arts. we help established artists and up-and-coming talents in various areas to foster diversity. regardless whether it is competitive sport, mass sport, school sport or sport for the disabled — what matters to us is team spirit, tolerance and our responsibility toward society. these values are at the core of our sports sponsoring activities.
society SponSorShip Sports sponsorship 163 sports sponsorship. telekom‘s sports sponsorship philosophy is centered around the values of fairness, tolerance and team spirit. we promote these values, which also apply to our company, as part of long-term commitments and colla- borations. acting on our social responsibility, we are now more active than ever in supporting mass sport, school sport, sport for the disabled and talented young athletes. our support of top athletes and our colla- boration with the deutsche Sporthilfe foundation, the german olympic Sports Confederation (doSb) and the german national paralympic Committee (dbS) also played an important role in our sponsorship acti- vities in 2012, the year of the olympic and paralympic games in lon- don. we ended our partnership with the german olympic Sports Confe- deration at the end of 2012 but continue to support olympic sports through our involvement with the deutsche Sporthilfe foundation. „neW spoRts expeRience“ initiative. in 2012, the year of the paralympic games, we conducted numerous special projects as part of our „new sports experience“ initiative. in these projects, students from grades seven through ten had the chance to experience first-hand what athletes with disabilities can do. during the reporting period, around 15,000 students throughout germany par- ticipated in the project day events, which were integrated into their nor- mal school day. we have been able to reach some 60,000 school stu- dents since the initiative was launched in october 2009. training with paralympic medalists. on august 24, 2012, telekom hosted a paralympic training day in Colo- gne where wheelchair basketball players mareike adermann and annika zeyen trained school students in their sport before going on to win a gold medal in the 2012 paralympics. holger nikelis, reigning world champion in wheelchair table tennis, also conducted a training module. 2012 olympic silver medalist in fencing, britta heidemann, par- ticipated in the training as a guest. blind soccer players from the ger- man national team gave training at a secondary school in augsburg and national team members and paralympic athletes gave training in wheelchair basketball in frankfurt. upcoming reporters at the paralympics. in cooperation with the german national paralympic Committee (dbS) and the Cologne school of journalism, kölner Journalistenschule, tele- kom also hosted the „2012 paralympics upcoming reporter“ competi- tion in 2012. interested students were asked to submit a 60-second film on „respect—the 2012 paralympics.“ the winners, four teams com- prised of a total of 16 students, were invited to go to london where they reported live online on the paralympics from august 29th to September 9th. in 2012, telekom also provided all secondary schools in germany with classroom material entitled „high performers with a disability“ as part of the „new sports experience“ initiative. the course material was develo- ped under the patronage of hubert hüppe, the german federal government‘s commissioner for people with disabilities. paRtneRship With the geRman national paRalympics committee. as a partner of the german national paralympics Committee (dbS), telekom has been involved in disabled sports since 2006. to celebrate the 2012 olympic and paralympic games, telekom extended its part- nership with the organization in 2012 for two more years. it also provi- ded the communication infrastructure at deutsches haus, a meeting spot for guests from the worlds of sports, politics, business and society, during the games, including the media lounge for journalists. as a sponsor, the group helped select the disabled athletes of the year in november 2012. the group of candidates comprised medalists from the paralympic games in london. track-and-field athlete birgit kober, table tennis player Jochen wollmert and the women‘s wheelchair bas- ketball team were chosen as the 2012 disabled athletes of the year. telekom suppoRts caReeRs afteR pRofessional spoRts. in cooperation with the deutsche Sporthilfe foundation, telekom initia- ted the dual Career planning program in 2012. the goal of the program is to make it easier for former athletes to start new careers. twelve top german athletes attended a professional applicant training at telekom headquarters in bonn in october 2012, including hockey olympic medalist benjamin weß, Sara goller, who came in fifth place at the olympics in beach volleyball, katrin mattscherodt, olympic gold meda- list in speed skating and top gymnast kim bui. a second applicant trai- ning was held for ten athletes sponsored by the deutsche Sporthilfe foundation at the allianz arena in munich in november 2012. both trai- ning sessions were conducted by human resources experts from deut- sche telekom. the focus of the dual Career planning program are internship offers for which interested athletes can apply at deutsche Sporthilfe. each athlete‘s particular situation is taken into consideration during the selec- tion process, including additional time needed to spend on training and competitions as well as any lack of job experience. Several olympic ath- letes have already participated in the program.
society SponSorShip Sports sponsorship 164 „your name for germany.“ telekom has been supporting the deutsche Sporthilfe foundation‘s „your name for germany“ campaign as one of four german sponsors since 2011. the campaign offers any german resident interested in sports the opportunity to personally sponsor top german athletes with three euros a month as an official sponsor. in 2012, telekom advertised at 20 offices throughout germany as well as with various internal com- munication platforms to get employees interested in the program. top marathon runner and olympic athlete, Susanne hahn, ran in the 2012 bonn marathon for the telekom team as a project „ambassador.“ Some 4,000 employees signed up as olympic sponsors during the campaign. sponsoRing the bonn maRathon. telekom is a sponsor of the annual bonn marathon and has its own team at the starting line. many employees travel to bonn from different cities to attend the event. this year, a total of 700 telekom employees participated in the marathon. in 2012, top marathon runner and olym- pic athlete, Susanne hahn, and three telekom employees formed a telekom-Sporthilfe team that advertised for the deutsche Sporthilfe campaign, „your name for germany.“ deutsche Sporthilfe was also at the marathon with its own truck and advertised for people to sponsor the initiative of which telekom is a partner. in 2013, we will again be supporting the bonn marathon and are preparing our employees for the race with our „Staying in shape in the winter“ training program 2,000 employees signed up in 2012.
society SponSorShip Cultural sponsorship 165 Cultural sponsorship. Czech republic, hungary, Croatia, poland, Slovakia, montenegro and the netherlands in 2012. more than 30,000 fans celebrated upcoming and established artists like the pet Shop boys and new order. in June / July 2012, we also organized a photography and cover artwork exhibi- tion by the band new order at the .hbC berlin club. the band was available at the opening to answer questions. the electronicbeats.net website recorded around 200,000 clicks a month in 2012 and the number of facebook visitors even increased to 380,000 during the top months. the electronic beats profiles on Sound- cloud and twitter have thousands of followers. the music and club culture magazine, Slices, which is published four times a year, has also been well received and is now available in ten markets. telekom will continue to support electronic beats in 2013. slovak telekom suppoRts Roma music. Slovak telekom was a general partner of the international roma festival held at red Castle in august 2012. this open-air festival is a forum for roma artists to present their culture and features typical roma food and hand-made products. the ngo wild poppies, which runs a scholarship program for roma children from poor families or orphanages, also enabled these children to attend the festival, to which Slovak telekom donated eur 40,000. Slovak telekom also partnered the roma Christ- mas Concert 2012. Cds from the concert and the summer festival have been sold and the money raised returned to the wild poppies in the form of a donation. deutsche telekom encourages variety in cultural expression from bee- thoven and electronic beats to contemporary art and cross-over cultural events. together with various partners from the national and internatio- nal music and art scene, we want to give people access to an extensive cultural event offer and contribute our experience in effective and broad-based communications and marketing. we also provide state-of- the-art technology and products as needed. inteRnational telekom beethoven competition. with the international telekom beethoven Competition in bonn, deut- sche telekom helps young musicians on their way to the top. we first held the the piano competition in 2005. young pianists from all over the world have been performing every two years before a first-class jury ever since. deutsche telekom will be hosting the fifth international telekom beethoven Competition in bonn from december 6 - 14, 2013. during the reporting period we once again put out a request for submissions from young pianists who would like to participate in the competition. twenty-four participants will be invited to the competition. telekom stReet gigs—the music expeRience. Since 2007, german and international mainstream artists have been appearing at unusual places like ferries, botanical gardens and parking structures as part of the telekom Street gigs events under the slogan, „the best bands where no one expects them to be.“ tickets to the events are limited and are given away as prizes in telekom sweepstakes. however, the events are broadcast live online as well as by various television stations. the telekom Street gigs are particularly popular among young people. during the reporting period, more than 65,000 people participated in sweepstakes to win concert tickets to see Casper, Jupiter Jones, linkin park, billy talent and medina. we also held a talent special with upcoming artists and a punk rock special featuring three bands. 140,000 active community members. the number of active community members has increased considerably by almost 50 percent to around 140,000 members. the live online streams of the concerts were very popular in 2012 as well, with 75,000 people viewing the broadcasts. the street gig with linkin park was vie- wed more than 1,000,000 times on youtube within just a short amount of time. another 2.5 million viewers watched the concerts on tV. in addi- tion to the german tV station, proSieben, telekom got other tV stations such as Viva, sixx and imusic to broadcast the concerts during the reporting period. electRonic beats thRoughout euRope. telekom‘s international music marketing program, electronic beats, saw a total of 18 music events being held in germany, austria, the
employees 166 employees as a global corporation, we are involved in a fast-paced industry that is driven by innovation. we expect our employees to be highly flexible and ready to face new challenges throughout their careers. it is our duty as an employer to create the space and framework our employees need to meet these challenges. we support or employees by giving them a sustainable work environment and professional and personal develop- ment opportunities as well as promoting health and personal life balance. our offers are targeted at the needs of our employees and take different phases of life into consideration. they range from new career training and company day care to encouraging intergenerational dialog.
employees hr reSponSibility 167 hr responsibility. we are pursuing the ambitious goal of delighting our customers and making things simpler. our goal is to create the best customer expe- rience possible — in everything we do. this is what our employees worldwide strive to put into practice every single day. our responsible hr policy is a key factor behind our success. with our new hr strategy adopted in 2013 we have initiated a comprehensive process to update our corporate culture in order to increase the group‘s competitive edge, innovative strength and ability to transform the group on a long-term basis. Just like our group-wide employee relations policy and our Social Charter, our new hr strategy is a perfect example of how seri- ously we take the responsibility we bear toward our employees. the stRategic context. „Seamless connectivity for the gigabit Society,“ „more innovation by cooperation,“ „Secure cloud solutions,“ and „best-in-class customer experience“ — these are the four action areas of deutsche telekom‘s group strategy. their implementation is defined by the call to „Com- pete‒Transform‒Innovate“ which, in turn, provides the framework for our human resources strategy. we have also incorporated any external factors that could influence the focus of our personnel strategy, inclu- ding megatrends such as globalization, individualization, sustainability and demographic change, as well as deutsche telekom‘s competitive environment. our mission is to permanently support and accelerate the success of our company and our employees. pRoductivity, peRfoRmance, poWeR ‒ the thRee main dRiveRs of ouR hR stRategy. in early 2013, telekom introduced a new human resources (hr) strat- egy and laid the framework for its implementation. our strategic princip- les are clearly formulated: hr‘s role is to accelerate the success of the company and its employees. through these principles, we promise to develop processes and products with a measurable influence on the success of our company and its employees. our hr work is therefore clearly centered around the three strategic thrusts of productivity, perfor- mance and power. productivity means deploying employees with the right skills and attitude, in the right place, and at an appropriate cost in relation to capacity. this is one of our fundamental tasks. performance means systematically focusing on performance and establishing a leadership concept that supports and rewards achie- vement transparently and appropriately. power means our company‘s agility, flexibility and capacity to innovate. we create the framework conditions to inspire and motivate our workforce. these three strategic drivers make a decisive contribution towards deut- sche telekom‘s corporate success. fouR stRategic coRneRstones: “hR big 4“. we have defined the following four focal areas for 2013: hr big 1: we manage our internal and external employee structure to maximize productivity. this means Consistently implementing total workforce management and introducing external workforce management for comprehensive control of outsourced work across all group units. hr big 2: we embrace inspiring leadership principles to encourage and reward top performance. to this end, in 2013 we are preparing to roll out a new performance management system for our executives to inspire even more entrepreneurial ideas and actions, and introducing group-wide leadership principles for the first time. hr big 3: we create modern work environments where professional experience and knowledge can be shared and enhanced. we achieve this by applying work models that reflect the different lifecycles of our employees in line with the demographic structure of our workforce, introducing modern workplace concepts and new worktime models. hr big 4: we are committed to clear and simple processes. hR moves!–eight stRategic initiatives dRive the implementation of ouR hR big 4. we are speeding up the implementation of the hr big 4 in 2013 with the hr moVeS! program. we bring together eight strategic initiatives that address our most important topics in our hr moVeS! program: demography, work environments, collaboration, efficiency, leadership, performance and costs. these initiatives will maximize the effect of the hr big 4 in deutsche telekom‘s operational business. here is an over- view of the initiatives: Demography as an opportunity: we identify the challenges associated with demographic change, and develop appropriate solutions. the priorities are lifelong learning, health, concepts for greater flexibility of working hours, and cultural change.
employees hr reSponSibility 168 Future workplace: in an initial pilot project, we have developed a workplace concept which incorporates architectural requirements and the necessary it infrastructure, whilst also accommodating the culture of collaboration. our office space is carefully designed to create a modern working atmosphere and encourage close collabo- ration between employees. this concept will become our standard for optimizing the deutsche telekom group‘s property portfolio. global collaboration: we support international cooperation within the group. this means encouraging the use of english in day-to-day operations. we are also developing technical solutions to make virtual collaboration even easier. Fix the basics: we are scaling back the complexity of our hr roducts and processes, and streamlining the entire hr portfolio. we are also working on an integrated, customer-centric hr process landscape with extensive automation. Deutsche telekom leadership principles: for the first time, we are developing uniform group-wide leadership principles, and integra- ting them into our leadership processes and systems. new performance management: this initiative will simplify existing performance management tools for our executives, with an empha- sis on rewarding strategy implementation and initiative. we speak the language of our customers and draft our offers in their language. we provide our products and services throughout the group in line with consistent and standardized categories. For more simplicity: the hr portfolio under review. in 2013 we are striving to achieve more simplicity through a number of concrete measures: the strategic hr initiative fix the basics helps us focus our attention on the simplicity of current hr products. that also means reducing the complexity of our product portfolio. obsolete or inadequate products need to be upgraded or discontinued. hr Category & product management is an initiative for 2013 that is specially designed to sharpen the profiles of hr roles and establish clearly defined responsibilities in the group. these roles have been defined according to the three-pronged model adopted by telekom hr: management and controlling tasks are the responsibility of our hr Competence Centers, while our hr business partners provide mance and facilitate smooth interaction among the various hr roles. consulting for strategic hr topics, and group hr Services take care of our operational business matters. this structured approach enables us to constantly improve our cross-segment hr perfor- external workforce management: our aim is to reduce the cost of in addition, the lean hr initiative provides the group with a market-- conform rate in terms of hr support for the business side. this outsourced work using efficient control mechanisms. to this end, we are introducing uniform quality criteria that will affect the volume, price and skills structure of our external workforce. the way we work: we are implementing methods and work processes in the hr unit to make our day-to-day working practices even simpler, more customer-centric and result-focused. Realizing hR pRojects With tRanspaRency and efficiency. hr at deutsche telekom has positioned itself as a partner and recog- nized consultant for operational business in the group. we fill this role best by consistently focusing our activities on the needs of our internal customers, namely the employees at telekom, who give their best every day to satisfy the group‘s customers. that is the reason why we critically evaluate our product and service portfolio, along with our processes, at regular intervals. we keep three principles in mind: achieve more efficiency. hr support should be available to manage- means that we continually improve our hr functions at all levels to ment and employees in a quality that is in line with industry stan- dards, with a consulting ratio comparable to that of similar iCt enterprises. by accepting responsibility, by taking customer feedback seriously and by responding to key issues with consistent action, hr clearly focuses its efforts on meeting the requirements of the business side. employee Relations policy. group-wide standards regarding employee relations as well as working with trade unions and employee representatives are developed by a department that was set up at deutsche telekom especially for this pur- pose. the department also encourages the different countries to exchange information about employee relations. we tailor our offerings in response to the current needs of the various business areas in the group. the employee relations policy, which was rolled out throughout the group by late 2012, defines the core elements of deutsche telekom‘s
employees hr reSponSibility 169 human resources policy and describes what we stand for in our relation- ships to our employees around the globe. these relationships are cha- racterized by our shared values and are derived from our five guiding principles as well as from additional group policies. our employee relations policy also addresses the following topics: employee development handling change responsibly healthcare and sustainability fair pay achieving a good life balance leadership diversity ban on discrimination Communication Collaboration with employee representatives we began using indicators to monitor the employee relations policy in 2013. we are also planning to conduct reviews in different countries over the course of the year. we will be monitoring the employee rela- tions policy and conducting related measures on a continual basis. accompanying measuRes foR the employee Relations policy. we developed various accompanying measures for group-wide intro- duction and implementation of the employee relations policy in 2012: t-mobile usA: the best place to perform and grow initiative was foun- ded at t-mobile uSa to improve employee satisfaction. a project team is collecting feedback from employees as well as from exit interviews. the results of the employee survey will also be used. the team is also deve- loping measures in the customer service area that will help to communi- cate information more effectively, improve the employees‘ growth options and motivate them to work even harder. the company also continues to promote an open-door policy so that any accusations of harassment or discrimination can be thoroughly and fairly investigated as quickly as possible. this communication initiative informs employees of their rights and gives them contact information for submitting complaints, concerns or similar. t-systems south Africa: our activities at t-Systems South africa exceed local standards and legal regulations. regular dialog takes place between management and employees even though no labor union is represented at the company. this is known as „employee con- sensus seeking approach“ and helps take account of employee inte- rests in the corporate decision-making process at an early stage. t-systems malaysia: in early 2012, t-Systems malaysia developed a new hiring procedure for managers based on the guiding principles and the employees relations policy. the procedure defines who should participate in the selection process, the various steps to be taken and the required qualifications. the plan is to integrate the procedure into the company as a standard process with clear role assignment and res- ponsibilities and, on a long-term basis, as a measurement system based on kpis that will make sure that managers act as role models in terms of the deutsche telekom group‘s guiding principles. social chaRteR: complying With minimum standaRds. we passed our group-wide Social Charter (download) in 2003. the Charter is based on the principles of the global Compact , the oeCd guidelines and the core labor standards set out by the ilo. it specifies compliance with international standards. the Social Charter addresses key topics such as the ban on child labor, equal opportunity, occupatio- nal health and safety and the right to form and join a trade union (the right of free association). our suppliers are obligated to comply with these policies as well. we publish an annual social performance report in which we assess our group companies‘ compliance with the principles set forth in the Social Charter . in 2012, we added two detailed questions on the topics of free- dom of association and collective bargaining to our annual survey. the responses we received show that our group companies are complying reliably with the principles contained in our Social Charter . that means that all of telekom‘s consolidated units both in germany and abroad conducted their business in compliance with our Social Charter in 2012. you will find a summary of our 2012 Social performance report on the deutsche telekom website. the head of group relations management is responsible for all matters dealing with human rights issues at deutsche telekom. the topic was assigned to this function in november 2012. fiRst collective agReement at t-mobile usa. t-mobile uSa is a good example of our high international standards when it comes to employee rights. Contrary to some statements made, the international subsidiary complies with u.S. labor law without excep- tion, including policies and legally specified processes regarding the right to set up and join a trade union. t-mobile uSa does not prevent any of its employees from setting up or joining a union and does not discriminate against those who do. on october 23, 2012, t-mobile uSa signed a collective agreement with the uS Communications workers of america (Cwa) trade union. the agreement concerns 16 employees in Connecticut who voted for union representation on July 19, 2011.
employees hr reSponSibility 170 Some features of the collective agreement particularly worth mentio- ning are the performance-based pay system, health insurance benefits, disability insurance, life insurance, accident insurance, paid leave, employee benefits, advisory services and reimbursement of work- related education and training fees.
employees Corporate Culture 171 Corporate Culture. together with its employees, telekom has initiated an extensive transfor- mation of our corporate culture with the aim of creating more agile and more efficient work processes and encouraging our employees to take a more innovative and entrepreneurial approach. we are working to encourage our employees to take responsibility, expand international collaboration and strengthen our corporate culture, which is based on trust, throughout the group. our guiding principles and our Code of Conduct are the foundation of our shared, global corporate culture. ouR guiding pRinciples – the foundation of ouR coRpoRate cultuRe WoRldWide. ages to underscore the importance of our guiding principles. activities included team events, discussion panels and surprise flash-mob dance performances. the day‘s success continued even after the event was over. around 500 pictures, videos and comments on guiding principles day were handed in to be published in the intranet, and the intranet special, which we launched in June 2012, had been clicked more than 100,000 times by the end of the year. the next guiding principles day is scheduled for September 25, 2013. having a clear orientation based on accepted values is an integral ele- ment of our corporate culture. at deutsche telekom integrity, mutual respect, reliability, consistent customer orientation and performance ori- entation are among the principles that guide the conduct of our emplo- yees. these values are defined in our guiding principles, which are bin- ding for all 56 group companies—with the exception of ote in greece— that represent the consolidated units comprising deutsche telekom. ote will be completing the implementation of the guiding principles during 2013. code of conduct: pRomoting compliance eveRy day. ways of living up to the values of our guiding principles every work day are defined in our Code of Conduct, which applies throughout the group. the code supplements the values stated in the guiding princip- les by outlining clear, legally compliant approaches to daily conduct that must be followed by our employees. thus the Code of Conduct serves as a bridge between corporate culture and compliance awareness, offe- ring us support in maintaining daily business conduct that is both ethi- cal and legally compliant in every way. the guiding principles are firmly rooted in our corporate and hr pro- cesses, such as the employee competency models and the perfor- mance review procedures in all of our subsidiaries. this enables us to create a viable basis for our corporate culture that is consistent throug- hout the group. through events and specific campaigns, we raise our employees‘ awareness of our basic values and encourage them to act in accordance with our accepted principles. the highlight in 2012 was guiding principles day, which was observed throughout the group for the third time. our employees confirm that our commitment to the values represented by our corporate culture is paying off: 63 percent of those participating in the group‘s 2012 employee survey said that acting in accordance with the guiding principles is becoming an accepted practice every day, and they view these principles as the solid basis for effective collabora- tion. guiding principles Day. Anchoring corporate culture in daily working life. in order to make practicing the guiding principles a matter of course, a guiding principles day is held every year at all group units. all of our employees are called upon to think about the guiding principles and come up with ideas on how to implement them in day-to-day work. the third guiding principles day took place on September 26, 2012, with a great turnout. this event took place in 34 countries and 50 business units, with inspiring and novel activities conducted in 19 different langu- the Code of Conduct was completely revised in 2010 and 2011, and was implemented in all of the fully consolidated companies within the group. we monitored the implementation process in all units until the end of 2012 via the pulse check. when the implementation process was completed, some 72 percent of those surveyed said that the Code of Conduct represented an important source of orientation that influenced their professional behavior. there has also been an increase in the number of employees who believe that they can report improper conduct without suffering nega- tive repercussions. the proportion of employees throughout the group sharing this view increased from 67 percent in 2010 to 75 percent in 2012, according to the results of the employee survey. Campaigns, training sessions and guidelines spelling out the specifics contained in the various sections of the Code of Conduct were at the core of our activities in 2012. typical examples included the anticorrup- tion campaign and many on-site compliance training courses that were held throughout the group. we also support employees by providing them with the latest guidelines pertaining to topics such as consulting and sponsoring. standaRdized tools and inteRnational netWoRk suppoRt cultuRal tRansfoRmation. telekom wants and needs to provide its customers with excellent service at competitive prices, both on our domestic market in germany
employees Corporate Culture 172 ensure that we are — and remain — the customer‘s first choice. one example of these efforts is the Voluntary Christmas helpers program at magyar telekom, in which more than 200 additional employees volunta- rily help their colleagues in the shops during the holiday season. and Slovak telekom presents the Service hero award to those employees who demonstrate outstanding service consciousness. we have initiati- ves and programs in nearly every group company so that we can main- tain and improve the high quality of our service. in germany we have also relied on our Service academy since 2008. in fact, all managers are required to participate in this program. the goal of the Service academy is to maximize service consciousness, custo- mer understanding and service competencies, especially for managers who do not have direct customer contact. to reach this goal, managers participating in the Service academy are given an opportunity to learn about what customers expect from us in daily real-life situations. in addi- tion to providing theoretical knowledge, the program also helps partici- pants gain hands-on experience by having them visit various service units and shops, where they carry out tasks involving direct contact with customers. over the past five years, 98 percent of our managers in ger- many have participated in the Service academy annually. in 2012 the number of those taking part in the program was about 1,800. we are currently working on plans to further develop the Service aca- demy, which is a german initiative, so that we can transform it into an international program. in the future the target group will not be limited to upper-level management in germany, but will also include international participants across all hierarchies. future program content will be com- prised of theoretical and practical modules that will be developed in col- laboration with our stakeholders. as well as at our european subsidiaries and affiliates. that is why we are continuing to restructure our company. our goal is to structure the company in a way that will make it as efficient as possible while provi- ding maximum flexibility for our customers. that means our employees need to be ready to embrace the change. we introduced a change management system throughout the group in 2009 to help our emplo- yees adjust to challenging changes during our transformation to the „new telekom“ and to firmly establish the new structures and the new corporate culture as part of their daily work. our globally available Change navigator, a kit of tools and information on the topics of change and change management, is intended to help create a uniform under- standing of the transformation that is taking place throughout the group. as a group-wide best practice platform, the Change navigator helps design appropriate measures for managing change projects and processes. we continue to advance the Change navigator with the help of experience and feedback. however, this tool cannot replace the pro- fessional assistance of change experts. that is why telekom offers certi- fied on-site training programs where the hr business partners and managers at the business units can become change managers. we also make sure our change experts are networking effectively and communi- cating regularly through channels such as social media platforms and teleconferences. pRomoting agility, knoWledge tRansfeR and innovativeness – a neW unit is leading the Way. we are consistently redefining the role of human resources. in January 2013 we began bundling activities related to cultural transformation at deutsche telekom and established the group transformational Change unit to manage these activities. this unit develops sustainable solutions and offerings for the world of the future—both professional and private. these solutions include new forms of internal and external collabora- tion, agile work models, improved innovation and service orientation, as well as measures for promoting entrepreneurial thinking and action. a series of pilot projects were launched in 2012. we then boosted these activities in 2013. instead of utilizing standardized training and seminar programs, group transformational Change applies creative approaches that address specific needs as they arise. the concept is renewing our corporate culture – not by merely following directives issued by head- quarters, but rather through concrete measures and initiatives origina- ting in the various telekom business units. continuing to expand ouR seRvice oRientation. delivering the best possible service to our customers — anytime, any- where — is a fundamental tenet at deutsche telekom, and it is one of our most important competitive value propositions in today‘s market. we have launched numerous initiatives and programs to raise service awareness in all telekom companies and segments. these activities will