Deutsche Telekom (DT) has reported that second quarter net income fell 35% year-on-year to EUR394 million (USD608 million) on the back of domestic subscriber losses, a stronger euro and higher interest costs. The figure was below analyst expectations. Sales were down 2.9% to EUR15.1 billion. DT lost 2.1 million traditional phone customers in Germany last year, and anticipates losing as many as 1.9 million clients in 2008, plus an additional 800,000 to 1.1 million customers because it will sell ‘naked’ DSL to competitors following demands by the Federal Network Agency. Sales at T-Mobile USA were up 14% in local currency, but with the dollar decreasing by more than 14% against the euro, DT recorded a 0.8% decline at its American subsidiary.