<PAGE> 1
Filed by Deutsche Telekom AG
Pursuant to Rule 425 under the Securities Act of 1933
Subject Company: Powertel, Inc.
Exchange Act File Number 000 23102
THE FOLLOWING IS A SLIDE PRESENTATION GIVEN BY DEUTSCHE TELEKOM AG
ON OCTOBER 30, 2000
<PAGE> 2
Deutsche Telekom
October 2000
Dr. Ron Sommer, CEO
[DEUTSCHE TELEKOM LOGO]
<PAGE> 3
DISCLAIMER
This presentation contains certain statements that are neither reported
financial results nor other historical information. These statements are
forward-looking statements within the meaning of the safe-harbor provisions of
the U.S. federal securities laws. Because these forward-looking statements are
subject to risks and uncertainties, actual future results may differ materially
from those expressed in or implied by the statements. Many of these risks and
uncertainties relate to factors that are beyond Deutsche Telekom's ability to
control or estimate precisely, such as future market conditions, currency
fluctuations, the behavior of other market participants, the actions of
governmental regulators and other risk factors detailed in Deutsche Telekom's
reports filed with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak
only as of the date of this document. Deutsche Telekom does not undertake any
obligation to publicly release any revisions to these forward-looking statements
to reflect events or circumstances after the date of these materials.
Investors and security holders are advised to read the proxy
statement/prospectus, as amended from time to time, regarding the business
combination transactions between Deutsche Telekom AG and VoiceStream Wireless
Corporation and between Deutsche Telekom AG and Powertel, Inc. referenced in
these materials because it contains important information. The preliminary
proxy statement/prospectus was filed with the Securities and Exchange
Commission by Deutsche Telekom AG, VoiceStream Wireless Corporation and
Powertel, Inc. Security holders may obtain a free copy of the proxy
statement/prospectus and other related documents filed by Deutsche Telekom AG,
VoiceStream Wireless Corporation, and Powertel, Inc. at the Commission's
website at www.sec.gov or at the Commission's public reference room located at
450 Fifth Street, NW, Washington D.C. 20549 or at one of the Commission's other
public reference rooms in New York, New York and Chicago, Illinois. Please call
the Commission at 1-800-SEC-0330 for further information of the public
reference rooms. The proxy statement/prospectus and the other documents may
also be obtained from Deutsche Telekom by contacting Deutsche Telekom,
Attention: Petra Michalscheck, Investor Relations, 140 Friedrich-Ebert-Allee,
53113 Bonn, Germany and/or Deutsche Telekom, Inc., Attention: Brigitte Weniger,
280 Park Avenue, 26th Floor, New York, New York 10017.
[DEUTSCHE TELEKOM LOGO]
2
<PAGE> 4
Strategy (I)
Deutsche Telekom has adopted a unique strategy . . .
-- T-Mobile
-- Creating the first global GSM operator
-- Leveraging large 2G subscriber bases to introduce mobile data and
3G services
-- T-Online
-- Leveraging our subscriber leadership to develop e-commerce
-- Industry consolidator on a European scale
-- T-Systems
-- Moving up the value chain in data communications
-- Achieving significant scale as a systems integrator
-- T-Com
-- Reducing dependence on long-distance revenue
-- Building market leadership in broadband
[DEUTSCHE TELEKOM LOGO]
3
<PAGE> 5
STRATEGY (II)
. . . WHICH IS GENERATING STRONG GROWTH IN MOBILE, INTERNET, SYSTEMS, AND ACCESS
<TABLE>
<S> <C> <C> <C> <C>
Revenue
growth +101% +59% +24% -0.2%
Revenue T-Com
% of total T- T- T- &
Mobile* Online Systems Others**
H1 2000 21% 2% 9% 68%
UP ARROW UP ARROW UP ARROW DOWN ARROW
H1 1999 12% 1% 8% 79%
</TABLE>
NETWORKS
* Including One20ne and max.mobil..
** Including all other activities such as Carrier Services, Value Added Service,
Broadcasting and Broadband Cable, Terminal Equipment, MATAV and SIRIS.
Please note that this revenue breakdown deviates from our normal segment
reporting according to FAS131.
[DEUTSCHE TELEKOM LOGO]
4
<PAGE> 6
Strong Operational Performance
<TABLE>
<CAPTION>
H1/00 H1/00
million H1/00 12/99 H1/99 FY/99 H1/99
<S> <C> <C> <C> <C> <C>
Majority-controlled
mobile subscribers 22.6 15.7 11.3 44% 100%
- Germany: T-Mobile
(GSM) 13.4 9.1 6.8 47% 97%
- U.K.: One2One 6.1 4.2 2.6 45% 135%
- Austria: max.mobil. 1.8 1.5 1.1 20% 64%
- Hungary: Westel* 1.3 0.9 0.8 44% 63%
T-Online accounts** 6.0 4.2 3.3 43% 82%
Telephone lines
(incl.ISDN channels) 48.5 47.8 47.2 1% 3%
of which: ISDN
channels 15.3 13.3 11.7 15% 31%
- residential
customers*** 7.0 6.0 5.0 17% 40%
- business
customers*** 8.3 7.3 6.7 14% 24%
</TABLE>
* Held directly and indirectly by MATAV.
** Including acquisition of Club Internet.
*** In 2000 SME-customers were transferred to the business
customers segment.
[DEUTSCHE TELEKOM LOGO]
5
<PAGE> 7
VOICESTREAM -- THE RIGHT TRANSACTION
A MAJOR STRATEGIC MOVE
<TABLE>
<S> <C>
Right Market U.S. is the most attractive wireless market globally
Right Time Transaction timed just ahead of growth in U.S. mobile market
Right Company VoiceStream is the fastest growing operator in the U.S.
Right Management Proven VoiceStream management team to lead American wireless business
Right Price Price paid in line with precedent transactions on an enterprise value per POP basis
</TABLE>
[DEUTSCHE TELEKOM LOGO]
6
<PAGE> 8
MARKET LEADERSHIP:
LEAPFROGGING COMPETITION
Controlled equity POPs
(controlled, proportionate)*
<TABLE>
<S> <C>
DT/VSTR/ 400
PTEL
VODAFONE 307
SPRINT PCS 277
AT&T WIRELESS 236
NEXTEL 230
VERIZON WIRELESS 223
ORANGE 190
CINGULAR 159
</TABLE>
- Ranks #1 globally with approx.
400 million POPs (controlled,
proportionate)
- Pure play mobile company
with single technology
- Only GSM operator with
controlling interests in the
U.S. and major European
markets
- Unparalleled transatlantic
roaming opportunity
- Ideal platform to develop 3G
(UMTS) services
* Based on proportionate ownership
in the controlled companies.
[DEUTSCHE TELEKOM LOGO]
7
<PAGE> 9
T-MOBILE
KEY UMTS LICENSES SECURED
[EUROPEAN UMTS LANDSCAPE GRAPHIC]
KEY COUNTRIES
1. U.K.: GBP 4.0 billion (69 GBP per POP)
2. Germany: (Euro)8.5 billion ((Euro)104 per POP)
3. Netherlands:(Euro)395 million ((Euro)41 per POP)
4. No participation in Italy
5. Participate in beauty contest in Sweden
[DEUTSCHE TELEKOM LOGO]
8
<PAGE> 10
T-MOBIL
STRONG GROWTH AND STABLE MARKET SHARES
1999 H1 2000 Q3 2000
T-D1 39% 39% 40%
D2 41% 41% 41%
e-plus 16% 15% 14%
E2 4% 5% 6%
23.2 million customers 34.0 million customers 40.0 million customers
Source: Telecom-Handel; rounded individual percentages may add up to more than
100%.
[DEUTSCHE TELEKOM LOGO]
9
<PAGE> 11
T-MOBIL
UNPRECEDENTED SUBSCRIBER GROWTH IN GERMANY
<TABLE>
<CAPTION>
Net adds per quarter (thousands)
<S> <C>
Q1/99...... 574
Q2/99...... 758
Q3/99...... 901
Q4/99...... 1,360
Q1/00...... 1,823
Q2/00...... 2,527
Q3/00...... 2,648
</TABLE>
[DEUTSCHE TELEKOM LOGO]
10
<PAGE> 12
ONE2ONE
CONVERGENCE IN MARKET SHARES
<TABLE>
<S> <C> <C>
1999 H1 2000 Q3 2000
[PIE CHART] [PIE CHART] [PIE CHART]
One2One 17% One2One 20% One2One 21%
Orange 21% Orange 23% Orange 24%
Cellnet 29% Cellnet 26% Cellnet 25%
Vodaphone 33% Vodaphone 31% Vodaphone 30%
23.9 million customers 30.7 million customers 34.4 million customers
</TABLE>
[ ] One2One [ ] Orange [ ]Cellnet [ ] Vodafone
Source: One2One
[DEUTSCHE TELEKOM LOGO]
11
<PAGE> 13
One2One
Britain's fastest growing mobile network
Net adds per quarter (thousands)
Q1/99-------------329
Q2/99------------------401
Q3/99---------------------------604
Q4/99-------------------------------------------903
Q1/00--------------------------------------861
Q2/00---------------------------------------------------1,002
Q3/00------------------------------------------------------------1,122
[DEUTSCHE TELEKOM LOGO]
12
<PAGE> 14
Mobile
Strong positioning in Central and Eastern Europe
<TABLE>
RadioMobil* PTC** Westel*** MTS****
<S> <C> <C> <C> <C>
Penetration H1 2000............... 27.0% 13.3% 22.1% 9%
Market share H1 2000.............. 45.5% 43.8% 55.9% 53.0%
Subscribers H1 2000 (million)..... 1.3 2.2 1.3 0.6
Net revenues 1999 (Euro million).. 297 614 427 338
EBITDA 1999 (Euro million)........ 88 126 182 159
Net income 1999 (Euro million).... 23 -33 117 80
Personnel (FTE - June 30, 2000)... 1,848 2,804 1,380 1,496
</TABLE>
* Option exercised to increase indirect shareholding in RadioMobil from
41.4% to 52.0% in H1/2001.
** 22.5% shareholding held by TMO, with further 22.5% held by Deutsche
Telekom.
*** 51% held by MATAV (59.53% Deutsche Telekom) and 49% held directly by
Deutsche Telekom.
**** Shareholding of 36.2%.
[DEUTSCHE TELEKOM LOGO]
13
<PAGE> 15
T-MOTION
MOBILE PORTAL OF CHOICE
[PHONE GRAPHIC]
CONCEPT
- Pan-European mobile portal of choice
- Provider of streamlined, selective content and services
- Leverage TMO's subscriber base, T-Online's technical expertise and content
relationships, and the T-brand
!"=!Motion
PRODUCTS AND SERVICES
- Portfolio of must-have services (e.g. news, finance, organiser, travel)
- Service-centric approach focused on ease of adoption
- Focus on innovating mobility services
Services in Germany launched in 9/00
[DEUTSCHE TELEKOM LOGO]
14
<PAGE> 16
T-ONLINE
STRONG GROWTH OF SUBSCRIBERS AND LOG-INS
T-ONLINE SUBSCRIBERS AND LOG-INS
[LINE GRAPH]
- Subscribers* June 2000:
6.0 million
(+13% compared with
Q1/00)
- Log-ins Q2 2000**:
approx. 737 million
(+11% compared with
Q1/00)
-- Subscribers
- Log-ins
* Incl. 0.5 million subscribers of
Club Internet.
** Incl. Club Internet.
Source: T-Online.
[DEUTSCHE TELEKOM LOGO]
15
<PAGE> 17
T-Online
The leading portal in Germany
<TABLE>
<CAPTION>
Total minutes per month ('000)*
<S> <C>
T-Online.de 56,374
gmx.de 46,214
Web.de 42,225
Yahoo.de 31,770
Freenet.de 28,941
Lycos.de 22,318
</TABLE>
* Total minutes per month=
residential unique visitors x average usage per month
Source: Media Metrix Germany (June 2000),.de sites only
<TABLE>
<CAPTION>
Reach of Top Ten .de sites (%)
<S> <C>
T-Online.de 48.6
Yahoo.de 26.8
Lycos.de 24.8
Web.de 19.0
Gmx.de 15.3
Freenet.de 14.9
Puretec.de 14.2
MSN.de 12.9
Microsoft.de 12.3
Amazon.de 11.7
</TABLE>
Source: Media Metrix Germany (June 2000)
[DEUTSCHE TELEKOM LOGO]
16
<PAGE> 18
Ya.com
KEY ATTRACTIONS
<TABLE>
<S> <C>
--------------------------- 2 horizontal portals in Spain and Portugal
Iberia's Number 2 Portal 18 specialised vertical portals and various e-commerce sites
--------------------------- 98.6 million page views (June)
--------------------------- Reach above 50%
Strong Independent Brand 81 on-line advertising clients -- equivalent to 70-75%
--------------------------- of total Spanish on-line advertisers
--------------------------- Previous top management relevant experience
Experience Management Team Terra Networks
--------------------------- Add Pepper
Wanadoo
</TABLE>
--------------------------------------------------------------------------------
A MARKET LEADER UNDERPINNED BY SIGNIFICANT IBERIAN GROWTH POTENTIAL
--------------------------------------------------------------------------------
[DEUTSCHE TELEKOM LOGO]
17
<PAGE> 19
T-SYSTEMS
INTERNATIONAL COVERAGE IN SYSTEMS SOLUTIONS EXPANDING THROUGH DEBIS
[MAP]
[DEUTSCHE TELEKOM LOGO]
18
<PAGE> 20
NETWORK COMMUNICATIONS
DECREASING DOMESTIC AND INTERNATIONAL LONG-DISTANCE CALL CHARGES
TO 8% OF TOTAL REVENUES
<TABLE>
<CAPTION>
% OF TOTAL REVENUE
- (MILLION) H1/00 H1/99 H1/00 H1/99
<S> <C> <C> <C> <C>
Call charges (total) 4,361 5,343 22.7 31.9
-of which domestic and international LD
Access charges* 1,576 2,325 8.2 13.9
3,251 3,136 16.9 18.7
NEWTORK COMMUNICATIONS 7,612 8,479 39.6 50.6
CONSOLIDATED NET REVENUES 19,213 16,758 100.0 100.0
</TABLE>
*Including connection fees and other network services.
[DEUTSCHE TELEKOM LOGO]
19
<PAGE> 21
CALL MINUTES*
OVERALL VOLUME GROWTH CONTINUING
[BAR CHART]
<TABLE>
<CAPTION>
H1/99 H1/00
-----------------
MINUTES (BILLION)
<S> <C> <C>
City/local 59.9 55.3 (-7.7%)
Long distance 19.3 18.3 (-5.2%)
International 2.0 1.8 (-10.0%)
Fixed-to-mobile 2.4 3.2 (+33.3%)
Other services** 10.4 25.3 (+143.3%)
Total 94.0 104.0 (+10.6%)
</TABLE>
* In the PSTN = Public Switched Telephone Network.
** Directory assistance, service numbers, public telephones, T-Online.
Percentages calculated on the basis of exact values.
[DEUTSCHE TELEKOM LOGO]
20
<PAGE> 22
T-COM
BROADBAND: T-DSL TARIFF INITIATIVE STARTED IN AUGUST WILL BOOST GROWTH
Contracts (thousands)
[BAR CHART]
<TABLE>
<S> <C>
February 7
March 10
April 16
May 44
June 57
July 75
August 112
September 223
October* 273
</TABLE>
* Through October 16, 2000
[DEUTSCHE TELEKOM LOGO]
21
<PAGE> 23
DEUTSCHE TELEKOM
A UNIQUE GROWTH STORY
- Closing of Voice Stream number one priority
- Significant push in mobile data: GPRS and T-Motion
- Extending T-Online's market leadership to the broadband world
- Creation of T-Systems as the second largest systems integrator in Europe
- Becoming Europe's premier DSL provider
[DEUTSCHE TELEKOM LOGO]
22
