The ratings primarily reflect Deutsche Telekom AG's (DT) strong business positions in its core domestic fixed-line telephony market, as well as the business and operating progress achieved by its mobile-telephony unit, helped by rapidly improving performance at U.S.-based wireless subsidiary T-Mobile USA Inc. The recent consolidation of the U.S. mobile market, as well as the acquisition of Cingular's frequency and infrastructure capacities on the U.S. West Coast, should help provide a more stable market position. That said, the subsidiary--which is expected to account for a large share of DT's organic growth over the next two years--should continue to harbor many of DT's business risks. Standard&Poor's believes that the highly competitive U.S. wireless market will undergo strong competitive pressures
