T-Mobile USA Continues to Invest in Network Quality and Reports Second Quarter 2008...

* Reuters is not responsible for the content in this press release.

Thu Aug 7, 2008 1:00am EDT

T-Mobile USA Continues to Invest in Network Quality and Reports Second Quarter 2008 Results


   --  $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
BELLEVUE, Wash.--(Business Wire)--
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 Rene 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."

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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.
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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.
*T

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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.
*T

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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.
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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.
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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.
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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.
*T

   Stick Together Highlights

   --  On July 2, T-Mobile USA launched T-Mobile @Home(R) 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 Study(SM) -- 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).

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                    SELECTED DATA FOR T-MOBILE USA

(thousands)             Q2 08   Q1 08   YE 07   Q4 07   Q3 07   Q2 07
----------------------------------------------------------------------
Covered population(8)  284,000 284,000 284,000 284,000 283,000 282,000
----------------------------------------------------------------------
Customers, end of
 period(2)              31,466  30,798  28,685  28,685  27,734  26,877
----------------------------------------------------------------------
  Thereof contract
   customers            26,246  25,721  23,914  23,914  23,181  22,624
----------------------------------------------------------------------
  Thereof prepaid
   customers             5,220   5,077   4,771   4,771   4,553   4,253
----------------------------------------------------------------------
Net customer additions     668     981   3,644     951     857     857
----------------------------------------------------------------------
Acquired customers           -   1,132       -       -       -       -
----------------------------------------------------------------------

----------------------------------------------------------------------
Minutes of
 use/contract
 customer/month          1,170   1,150   1,130   1,120   1,130   1,150
----------------------------------------------------------------------
Contract churn           1.90%   1.70%   1.90%   1.80%   2.00%   1.80%
----------------------------------------------------------------------
Blended churn            2.70%   2.60%   2.80%   2.80%   2.90%   2.70%
----------------------------------------------------------------------

----------------------------------------------------------------------
($)
----------------------------------------------------------------------
ARPU (blended)(1, 9)        52      51      52      52      53      53
----------------------------------------------------------------------
ARPU (contract)             55      55      57      56      57      57
----------------------------------------------------------------------
ARPU (prepaid)              23      22      19      20      18      19
----------------------------------------------------------------------
Cost of serving
 (CCPU)(3)                  25      25      25      25      26      25
----------------------------------------------------------------------
Cost per gross add
 (CPGA)(4)                 320     300     300     300     280     300
----------------------------------------------------------------------

----------------------------------------------------------------------
($ million)
----------------------------------------------------------------------
Total revenues           5,470   5,187  19,288   5,068   4,894   4,780
----------------------------------------------------------------------
Service revenues(1, 9)   4,854   4,573  16,892   4,371   4,332   4,195
----------------------------------------------------------------------
OIBDA(5)                 1,583   1,441   5,350   1,327   1,412   1,386
----------------------------------------------------------------------
OIBDA margin(6)            32%     31%     31%     30%     32%     32%
----------------------------------------------------------------------
Capital
 expenditures(7)         1,062     690   2,677   1,009     500     546
----------------------------------------------------------------------

----------------------------------------------------------------------
Cell sites on-air(10)   42,000  41,000  37,900  37,900  37,000  36,400
----------------------------------------------------------------------


Since all companies do not calculate these figures in the same manner,
 the information contained in this press release may not be comparable
 to similarly titled measures reported by other companies.

(1)  Average Revenue Per User ("ARPU") represents the average monthly
 service revenue we earn from our customers. ARPU is calculated by
 dividing service revenues for the specified period by the average
 customers during the period, and further dividing by the number of
 months in the period. We believe ARPU provides management with useful
 information to evaluate the recurring revenues generated from our
 customer base.

Service revenues include contract, prepaid, and roaming and other
 service revenues, and do not include equipment sales and other
 revenues. Data services revenues is a component of service revenues.
 Within the consolidated financial statements below, other revenues
 include co-location rental income and wholesale revenues from the
 usage of our network in California, Nevada, and New York by AT&T
 customers, among other items, and are therefore not included in ARPU.

(2)  Contract customers and prepaid customers include FlexPay(SM)
 customers depending on the type of rate plan selected. FlexPay
 customers with a contract are included in contract customers, and
 FlexPay customers without a contract are included in prepaid
 customers.

(3)  The average cash cost of serving customers, or Cash Cost Per User
 ("CCPU"), is a non-GAAP financial measure and includes all network
 and general and administrative costs as well as the subsidy loss
 unrelated to customer acquisition. Subsidy loss unrelated to customer
 acquisition includes upgrade handset costs for existing customers
 offset by upgrade equipment revenues and other related direct costs.
 This measure is calculated as a per month average by dividing the
 total costs for the specified period by the average total customers
 during the period and further dividing by the number of months in the
 period. We believe that CCPU, which is a measure of the costs of
 serving a customer, provides relevant and useful information and is
 used by our management to evaluate the operating performance of our
 business.

(4)  Cost Per Gross Add ("CPGA") is a non-GAAP financial measure and
 is calculated by dividing the costs of acquiring a new customer,
 consisting of customer acquisition costs plus the subsidy loss
 related to customer acquisition for the specified period, by gross
 customers added during the period. Subsidy loss related to customer
 acquisition consists primarily of the excess of handset and accessory
 costs over related revenues incurred to acquire new customers. We
 believe that CPGA, which is a measure of the cost of acquiring a
 customer, provides relevant and useful information and is used by our
 management to evaluate the operating performance of our business.

(5)  Operating Income Before Interest, Depreciation and Amortization
 ("OIBDA") is a non-GAAP financial measure, which we define as
 operating income before depreciation and amortization. In a capital-
 intensive industry such as wireless telecommunications, we believe
 OIBDA, as well as the associated percentage margin calculation, to be
 meaningful measures of our operating performance. OIBDA should not be
 construed as an alternative to operating income or net income as
 determined in accordance with GAAP, as an alternative to cash flows
 from operating activities as determined in accordance with GAAP or as
 a measure of liquidity. We use OIBDA as an integral part of our
 planning and internal financial reporting processes, to evaluate the
 performance of our business by senior management and to compare our
 performance with that of many of our competitors. We believe that
 operating income is the financial measure calculated and presented in
 accordance with GAAP that is the most directly comparable to OIBDA.

(6)  OIBDA margin is a non-GAAP financial measure, which we define as
 OIBDA (as described in note 5 above) divided by total revenues less
 equipment sales.

(7)  Capital expenditures include amounts paid by T-Mobile USA for
 purchases of property, plant and equipment.

(8)  The covered population statistic represents T-Mobile USA's GSM /
 GPRS / EDGE 1900 voice and data network coverage, combined with
 roaming and other agreements.

(9)  Data ARPU is defined as total data revenues from contract
 customers, prepaid customers, and other data revenues, divided by
 average contract and prepaid customers during the period. Wi-Fi
 revenues are shown as a component of service revenues.

(10)  Cell sites are defined as the total number of sites in service
 at the end of the period, excluding small, low-power, low-gain access
 sites.  A site is in service when all equipment is installed and the
 site is integrated into the network.

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                             T-MOBILE USA
                Condensed Consolidated Balance Sheets
                        (dollars in millions)
                             (unaudited)

                                                June 30,  December 31,
                                                   2008         2007
                                                ----------------------
                    ASSETS
Current assets:
  Cash and cash equivalents.................... $     218    $      64
  Short-term affiliate loan receivable.........         -        1,075
  Short-term investment........................       141            -
  Accounts receivable, net of allowances of
   $305 and $272, respectively.................     2,640        2,617
  Accounts receivable from affiliates..........        20          274
  Inventory....................................       789          990
  Current portion of net deferred tax assets...     1,010          994
  Licenses held for exchange...................        16            1
  Other current assets.........................       609          538
                                                ----------------------
    Total current assets.......................     5,443        6,553
Property and equipment, net of accumulated
 depreciation of $10,277 and $9,788,
 respectively..................................    11,828       11,258
Goodwill.......................................    12,011       10,701
Spectrum licenses..............................    15,081       14,645
Other intangible assets, net of accumulated
 amortization of $510 and $489, respectively...       265           47
Other assets...................................       145          155
                                                ----------------------
                                                $  44,773    $  43,359
                                                ======================

     LIABILITIES AND STOCKHOLDER'S EQUITY

Current liabilities:
  Accounts payable and accrued liabilities..... $   3,457    $   3,790
  Current payables to affiliates...............     1,663        1,127
  Other current liabilities....................       380          380
                                                ----------------------
    Total current liabilities..................     5,500        5,297
                                                ----------------------

Long-term payables to affiliates...............     6,634        6,712
Deferred tax liabilities.......................     1,786        1,622
Other long-term liabilities....................     1,123          915
                                                ----------------------
    Total long-term liabilities................     9,543        9,249
                                                ----------------------

Minority interest in equity of consolidated
 subsidiaries..................................        92           89

Commitments and contingencies

Stockholder's equity:
  Common stock.................................    44,469       44,469
  Accumulated deficit..........................  (14,831)     (15,745)
                                                ----------------------
    Total stockholder's equity.................    29,638       28,724
                                                ----------------------
                                                $  44,773    $  43,359
                                                ======================

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                             T-MOBILE USA
           Condensed Consolidated Statements of Operations
                        (dollars in millions)
                             (unaudited)


                             Quarter Ended Quarter Ended Quarter Ended
                               June 30,      March 31,     June 30,
                                 2008          2008          2007
                             -----------------------------------------
Revenues:
  Contract..................       $4,321        $4,109         $3,814
  Prepaid...................          359           325            232
  Roaming and other service.          174           139            149
  Equipment sales...........          529           534            496
  Other.....................           87            80             89
                             -----------------------------------------
    Total revenues..........        5,470         5,187          4,780
                             -----------------------------------------
Operating expenses:
  Network...................        1,271         1,166          1,082
  Cost of equipment sales...          834           832            747
  General and administrative          906           887            788
  Customer acquisition......          876           861            777
  Depreciation and
   amortization.............          667           678            659
                             -----------------------------------------
    Total operating expenses        4,554         4,424          4,053
                             -----------------------------------------
Operating income............          916           763            727
Other expense, net..........        (185)          (11)          (157)
                             -----------------------------------------
Income before income taxes..          731           752            570
Income tax expense..........        (279)         (290)          (220)
                             -----------------------------------------
Net income..................       $  452        $  462         $  350
                             =========================================

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                             T-MOBILE USA
           Condensed Consolidated Statements of Cash Flows
                        (dollars in millions)
                             (unaudited)

                                           Quarter Ended Quarter Ended
                                           June 30, 2008 June 30, 2007
                                           ---------------------------
Operating activities:
 Net income...............................          $452          $350
 Adjustments to reconcile net income to
  net cash provided by operating
  activities:
   Depreciation and amortization..........           667           659
   Income tax expense.....................           279           220
   Other, net.............................           162           110
   Changes in operating assets and
    liabilities:..........................
     Accounts receivable..................         (153)          (46)
     Inventory............................           (4)           129
     Other current and non-current assets.          (21)            24
     Accounts payable and accrued
      liabilities.........................           143         (147)
                                           ---------------------------
   Net cash provided by operating
    activities............................         1,525         1,299
                                           ---------------------------
Investing activities:
  Purchases of property and equipment.....       (1,062)         (546)
  Purchases of intangible assets..........          (20)          (46)
  Short-term affiliate loan receivable....         (425)         (600)
  Other, net..............................            48             -
                                           ---------------------------
   Net cash used in investing activities..       (1,459)       (1,192)
                                           ---------------------------
Financing activities:
  Repayment of bonds payable..............         (768)             -
  Long-term debt borrowings from
   affiliates.............................           783             -
  Long-term debt repayments to affiliates.           (5)         (100)
  Other, net..............................             -             1
                                           ---------------------------
   Net cash provided by/(used in)
    financing activities..................            10          (99)
                                           ---------------------------

Change in cash and cash equivalents.......            76             8
Cash and cash equivalents, beginning of
 period...................................           142            52
                                           ---------------------------
Cash and cash equivalents, end of period..          $218           $60
                                           ===========================

*T

   Non-cash investing and financing activities with affiliates:

   T-Mobile USA remitted $1,120 million to affiliates in the first
and second quarters of 2008 and $600 million in the second quarter of
2007 as a short-term receivable; the cash outflow was used in the
second quarter of 2008 and 2007, respectively, as settlement of debt
in line with repayment schedules.

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                             T-MOBILE USA
   Reconciliation of Non-GAAP Financial Measures to GAAP Financial
                               Measures
           (dollars in millions, except for CPGA and CCPU)
                             (unaudited)

OIBDA can be reconciled to our operating income as follows:

                             Q2     Q1      YE      Q4     Q3     Q2
                            2008   2008    2007    2007   2007   2007
                           -------------------------------------------

OIBDA                      $1,583 $1,441 $  5,350 $1,327 $1,412 $1,386
Depreciation and
 amortization               (667)  (678)  (2,609)  (681)  (643)  (659)
                           -------------------------------------------

Operating income           $  916 $  763 $  2,741 $  646 $  769 $  727
                           ===========================================

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The following schedule reflects the CPGA calculation and provides a
 reconciliation of cost of acquiring customers used for the CPGA
 calculation to customer acquisition costs reported on our condensed
 consolidated statements of operations:



                             Q2     Q1      YE      Q4     Q3     Q2
                            2008   2008    2007    2007   2007   2007
                           -------------------------------------------
Customer acquisition costs $  876 $  861 $  3,274 $  901 $  801 $  777

Plus: Subsidy loss
 Equipment sales            (529)  (534)  (2,061)  (620)  (480)  (496)
Cost of equipment sales       834    832    3,120    879    733    747
                           -------------------------------------------
Total subsidy loss            305    298    1,059    259    253    251
                           -------------------------------------------

Less: Subsidy loss
 unrelated to customer
 acquisition                (169)  (173)    (623)  (157)  (143)  (146)
                           -------------------------------------------
Subsidy loss related to
 customer acquisition         136    125      436    102    110    105
                           -------------------------------------------
Cost of acquiring
 customers                 $1,012 $  986 $  3,710 $1,003 $  911 $  882
                           ===========================================

CPGA ($ / new customer
 added)                    $  320 $  300 $    300 $  300 $  280 $  300

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                             T-MOBILE USA
   Reconciliation of Non-GAAP Financial Measures to GAAP Financial
                               Measures
           (dollars in millions, except for CPGA and CCPU)
                             (unaudited)

The following schedule reflects the CCPU calculation and provides a
 reconciliation of the cost of serving customers used for the CCPU
 calculation to total network costs plus general and administrative
 costs reported on our condensed consolidated statements of
 operations:

                               Q2     Q1     YE     Q4     Q3     Q2
                              2008   2008   2007   2007   2007   2007
                             -----------------------------------------

Network costs                $1,271 $1,166 $4,344 $1,125 $1,130 $1,082
General and administrative      906    887  3,200    836    818    788
                             -----------------------------------------
Total network and general
 and administrative costs     2,177  2,053  7,544  1,961  1,948  1,870
Plus: Subsidy loss unrelated
 to customer acquisition        169    173    623    157    143    146
                             -----------------------------------------

Total cost of serving
 customers                   $2,346 $2,226 $8,167 $2,118 $2,091 $2,016
                             =========================================

CCPU ($ / customer per
 month)                      $   25 $   25 $   25 $   25 $   26 $   25

*T

   About T-Mobile USA:

   Based in Bellevue, WA, T-Mobile USA, Inc. 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.

   T-Mobile USA's innovative wireless products and services help
empower people to connect effortlessly to those who matter most.
T-Mobile USA's GSM/GPRS/EDGE 1900 voice and data network, when
combined with roaming and other agreements, reaches 284 million people
in the U.S. In addition, T-Mobile USA operates one of the largest
Wi-Fi (802.11b) wireless broadband (WLAN) networks in the country
(including roaming sites), available in approximately 9,700 convenient
public access locations nationwide. Multiple independent research
studies continue to rank T-Mobile USA highest in wireless customer
satisfaction, wireless call quality and wireless customer care in
numerous regions throughout the U.S. For more information, visit the
company website at www.t-mobile.com.

   About T-Mobile International:

   T-Mobile International is one of the world's leading mobile
communications businesses. As part of the Deutsche Telekom AG (NYSE:
DT) group, T-Mobile International concentrates on the key markets in
Europe and the United States.

   By the end of the second quarter of 2008, 125 million mobile
customers were served by the mobile communications segments of the
Deutsche Telekom group, all over a common technology platform based on
GSM, the world's most widely used digital wireless standard.

   For more information about T-Mobile International, please visit
www.t-mobile.net. For further information on Deutsche Telekom, please
visit www.telekom.de/investor-relations.

Press:
T-Mobile International
Michael Lange, +49 228-936-31717
or
Deutsche Telekom
Andreas Leigers, +49 228-181-4949
or
Investor Relations:
Investor Relations Bonn
Deutsche Telekom, +49 228-181-88880
or
Investor Relations New York
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