$1.58 billion Operating Income Before Depreciation and Amortization (“OIBDA”) in the second quarter of 2008, up 14% from the second quarter of 2007
668,000 net new customers added in the second quarter of 2008, of which almost 80% were contract customers
Service revenues of $4.9 billion in the second quarter of 2008, up 16% from the second quarter of 2007
Continued focus on improving network quality with approximately $1.1 billion invested and 1,000 new cell sites built in the second quarter of 2008
Ranked highest in wireless retail sales satisfaction according to J.D. Power and Associates

T-Mobile USA, Inc. (T-Mobile USA) today reported second quarter 2008 results. At the end of the quarter, T-Mobile USA had 31.5 million customers, adding 668,000 net new customers during the second quarter, OIBDA of $1.58 billion, up 14% compared to the second quarter of 2007, and blended churn of 2.7% consistent with the second quarter of 2007. The second quarter of 2008 is the first full quarter SunCom Wireless (SunCom) has been reflected in the results of T-Mobile USA. SunCom did not have a significant impact on T-Mobile USA’s first and second quarter 2008 consolidated metrics and results unless specifically stated below.

“T-Mobile continues to pursue new innovations to meet the pressing needs of our customers,” said Robert Dotson, President and CEO, T-Mobile USA. “In the quarter we went national with T-Mobile @Home, an affordable alternative to traditional landline service made available at a time when customers are eager for new ways to stretch their dollars. We also introduced our new Unlimited Family Plan for customers craving to stay connected to people in ways that don’t put additional stress on the family budget.”

“With continued double-digit dollar growth in revenues and OIBDA, T-Mobile USA continues to be one of the leading growth drivers for Deutsche Telekom,” said René Obermann, Chief Executive Officer, Deutsche Telekom. “We remain excited about the future growth opportunities in the U.S., especially in mobile data as we look toward a national introduction of our new 3G network later this year.”
Customers
–In the second quarter of 2008, T-Mobile USA added 668,000 net new customers, down from 981,000 in the first quarter of 2008, not including 1.1 million customers acquired from SunCom, and 857,000 in the second quarter of 2007.
– The sequential fall in net new customers related primarily to higher contract churn, as explained below. Gross contract customer additions remained consistently strong sequentially.
– Prepaid net additions (which consist of both traditional prepaid and FlexPay no-contract customers) were 143,000 in the second quarter of 2008, down from 248,000 in the first quarter of 2008 and 170,000 in the second quarter of 2007. Traditional prepaid customers fell in the second quarter of 2008 by approximately 160,000. This was more than offset by new customer additions and migrations to the FlexPay no-contract product, which continues to grow and attract large numbers of new customers. T-Mobile USA repositioned its prepaid business in the quarter, implementing new products and new dealer compensation programs.
– Contract customer net additions remained proportionally strong in the second quarter of 2008 making up almost 80% of customer growth, consistent with the first quarter of 2008 and second quarter of 2007 which were 75% and 80%, respectively.
– myFaves continues to be very popular with our customers. At the end of the second quarter there were more than 6.5 million myFaves customers, up from 5.5 million at the end of the first quarter of 2008.
–Contract customers comprised 83% of T-Mobile USA’s total customer base at June 30, 2008. T-Mobile USA ended the quarter with 31.5 million customers.

Churn
–Contract customer churn was 1.9% in the second quarter of 2008, up from 1.7% in the first quarter of 2008 and 1.8% in the second quarter of 2007.
– The sequential increase in contract churn was primarily due to the anniversary of the introduction of two-year contracts in April 2006. The second quarter of 2008 was the first quarter these two-year contracts could have expired.
–Blended churn, including both contract and prepaid customers, was 2.7% in the second quarter of 2008, slightly up from 2.6% in the first quarter of 2008 and in line with the second quarter of 2007.

OIBDA and Net Income
–T-Mobile USA reported OIBDA of $1.58 billion in the second quarter of 2008, up from $1.44 billion in the first quarter of 2008 and $1.39 billion in the second quarter of 2007.
– The sequential increase in OIBDA was primarily due to the larger customer base increasing service revenues, including the first full quarter consolidation of SunCom customers.
–OIBDA margin was 32% in the second quarter of 2008, up from 31% in the first quarter of 2008 and in line with the second quarter of 2007.
–Net income for the second quarter of 2008 was $452 million, consistent with $462 million in the first quarter of 2008 and up from $350 million in the second quarter of 2007.

Revenue
–Service revenues, consisting of contract, prepaid, and roaming and other service revenues, rose to $4.85 billion in the second quarter of 2008, up from $4.57 billion in the first quarter of 2008, and up from $4.20 billion in the second quarter of 2007.
– The increase in service revenues year over year was primarily due to the growth in contract customers, including the first full quarter inclusion of SunCom customers in T-Mobile USA’s results.
–Total revenues, including service, equipment, and other revenues were $5.47 billion in the second quarter of 2008, up from $5.19 billion in the first quarter of 2008 and $4.78 billion in the second quarter of 2007.
– The acquisition of SunCom, and its first full quarter consolidation in T-Mobile USA’s results, contributed $209 million to total revenues in the second quarter, compared to $86 million in the first quarter of 2008.

ARPU
–Blended Average Revenue Per User (”ARPU” as defined in note 1 to the Selected Data, below) was $52 in the second quarter of 2008, up from $51 in the first quarter and down from $53 in the second quarter of 2007.
–Contract ARPU was $55 in the second quarter of 2008, in line with the first quarter of 2008 and down from $57 in the second quarter of 2007.
–Prepaid ARPU was $23 in the second quarter of 2008, up from $22 in the first quarter of 2008 and up from $19 in the second quarter of 2007.
– The increase in prepaid ARPU is due to the success of higher ARPU prepaid products, such as FlexPay no-contract.
–Data services revenue, included in service revenues, was $810 million in the second quarter of 2008, representing 16.6% of blended ARPU, or $8.60 per customer, in line with 16.6% of blended ARPU, or $8.50 per customer in the first quarter of 2008, and 14.7% of blended ARPU, or $7.80 per customer in the second quarter of 2007. Data services revenue increased 31.5% year over year.
– Growth in messaging revenue continued to be the most significant driver of data ARPU, as customers continue to move towards purchasing plans that include messaging. The total number of messages on the T-Mobile USA network increased to 41 billion in the second quarter of 2008, compared to 33 billion in the first quarter of 2008 and 18 billion in the second quarter of 2007.
– Strong GPRS / EDGE access and usage through continued growth in converged device users was another significant driver for increased data revenues.

CPGA and CCPU
–The average cost of acquiring a customer, Cost Per Gross Add (”CPGA” as defined in note 4 to the Selected Data, below) was $320 in the second quarter of 2008, up from $300 in the first quarter of 2008 and second quarter of 2007.
– The increase in CPGA compared to the first quarter of 2008 is primarily due to higher advertising expenses related to the promotion of new products released during the quarter.
–The average cash cost of serving customers, Cash Cost Per User (”CCPU” as defined in note 3 to the Selected Data, below), was $25 per customer per month in the second quarter of 2008, the same as in both the first quarter of 2008 and second quarter of 2007.

Capital Expenditures
–Cash capital expenditures (see note 7 to the Selected Data below) were $1,062 million in the second quarter of 2008, compared with $690 million in the first quarter of 2008 and $546 million in the second quarter of 2007.
– The sequential increase in capital expenditures is primarily due to more cell sites being built in the quarter.
– The year over year increase in capital expenditures is primarily due to the build out of T-Mobile USA’s 3G (UMTS / HSDPA) network.
–T-Mobile USA continued its commitment to improve coverage in the second quarter of 2008, adding approximately 1,000 GSM/GPRS/EDGE new cell sites, bringing the total number of cell sites at the end of the quarter to 42,000.
–T-Mobile USA ended the quarter with more than 14,000 3G capable cell sites (included in the 42,000 above), an increase of 1,000 3G capable cell sites over the first quarter of 2008.

Stick Together Highlights
On July 2, T-Mobile USA launched T-Mobile @Home® nationwide. This service allows customers to keep their home phone number and save money by adding their home phone line to their T-Mobile service. Previously available in two test markets, Dallas and Seattle, T-Mobile @Home has proved to be a great solution for families looking for a way to save money without sacrificing a home phone.
On June 5, 2008, T-Mobile USA announced a new unlimited family plan that offers unlimited nationwide calling and unlimited text, picture and instant messaging.
T-Mobile USA received the highest ranking in overall customer care according to the J.D. Power and Associates 2008 Wireless Retail Sales Satisfaction StudySM – Volume 1 released in May 2008.
On May 5, 2008, T-Mobile USA launched its 3G network in New York City and announced plans to launch up to 25 additional 3G markets throughout the year, including Las Vegas, which launched on August 6, 2008.

This press release includes non-GAAP financial measures. The non-GAAP financial measures should be considered in addition to, but not as a substitute for, the information provided in accordance with GAAP. Reconciliations from the non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below following Selected Data and the financial statements.

T-Mobile USA is the U.S. operation of Deutsche Telekom AG’s (NYSE: DT) Mobile Communications Business, and is a wholly owned subsidiary of T-Mobile International. In order to provide comparability with the results of other U.S. wireless carriers, all financial amounts are in U.S. dollars and are based on accounting principles generally accepted in the United States (“GAAP”). T-Mobile USA results are included in the consolidated results of Deutsche Telekom, but differ from the information contained herein as Deutsche Telekom reports financial results in Euros and in accordance with International Financial Reporting Standards (IFRS).