This full analysis has been republished to clarify information regarding adjustments to Deutsche Telecom's reported gross debt in the Accounting section of the Financial Profile. Continuing strong market position and relatively stable earnings of the group's core German fixed-line and mobile businesses; Ongoing emphasis on operating and capital efficiency, which has led to significant free cash flow; A relatively friendly regulatory environment compared with that of many other EU markets, characterized by long-delayed aggressive access-based competition in fixed-line (notably broadband); and A controlled financial policy that is set to endure through at least year-end 2004 and has resulted in significant debt reduction since 2002. Still-leveraged financial profile following significant debt-funded investments in second- and third-generation (3G) wireless operations; Increasing competitive
