T-Mobile To Launch Low-Cost Service For Young Consumers

HANOVER, Germany -(Dow Jones)- Deutsche Telekom's wireless operator T-Mobile International will launch a low-cost service called "Max Young" in May.

The new service, which is targeted at consumers between the ages of 18 and 25, offers unlimited calls to other T-Mobile customers and to the German fixed-line network for a flat rate of EUR25 a month.

Deutsche Telekom, Germany's largest telecommunications company by sales, had unveiled earlier in March plans to launch a low-cost service, without disclosing details.

Deutsche Telekom has been hit hard by smaller and cheaper rivals on its home soil, resulting in declining sales in Germany.

The discount service will largely be sold through the Internet and by call centers.

The low-cost strategy mirrors that of rivals such as E-Plus - the German wireless unit of Dutch Royal KPN NV (KPN) - which has gained market share in recent quarters due to the success of discount brands such as Simyo and Base.

Deutsche Telekom Wednesday also said that it plans another low-cost service, "the Max S rate," that will offer a flat rate bundled with offers from Deutsche Telekom's fixed-line unit T-Com.

Company Web site: http://www.telekom.de

-By Joon Knapen, Dow Jones Newswires; +49-30-28884127; joon.knapen@dowjones.com

(END) Dow Jones Newswires"

Posted to the site on 14th March 2007