The ratings on Deutsche Telekom AG (DT) primarily reflect its solid business position in several markets and the strong uptake of broadband in Germany amid significant challenges in its core domestic fixed-line business. The ratings are also supported by growing operational cash flows from mobile telephony, particularly from U.S. subsidiary T-Mobile USA Inc. DT retains good growth prospects in its U.S. mobile business due to favorable demographics and a robust performance even though the unit is the smallest of the four main national operators in the U.S. Standard&Poor's Ratings Services expects DT's management to maintain a measured financial policy during the current peak in investments in network and spectrum in the U.S., fiber network in Germany, and restructuring
