Due to the present economic ambiguity and with the intention of satisfying shareholders with sturdy cost control measures and a steady dividend till 2012, Deutsche Telekom AG said on Thursday that it decreased its net loss in the fourth quarter while setting a timid outlook for 2010.

As compared to the net loss of €730 million the previous year, the net loss for the quarter ended Dec. 31 was €3 million. Sales for this year increased 0.6% to €16.2 billion. Further reduction in its cost base and a return of €3.4 billion annually to its shareholders was promised by the company. Savings of €5.9 billion were collected since it launched a cost-cutting program in 2006 by the company and it intends to decrease its s gross cost base by another €4.2 billion by 2012.

This vigilant outlook was a result of the uncertainty prevailing in the economy including the threat of unemployment, said the Bonn-based company which like many other telecom groups is facing the consequences of the dipping of fixed-line and mobile voice telephony revenues.

For 2010, Deutsche Telekom said it expects adjusted Ebitda of around €20 billion and free cash flow of €6.2 billion which were €20.67 billion and €6.97 billion last year respectively.

Chief Executive Officer Rene Obermann stated, "Cost discipline was key to getting through economically challenging times".