Market report: Deutsche Telekom
The $DTE (-0,92 %) remains a dominant player in the German telecommunications market, supported by strong financial results and ambitious projects. In 2024, the Group achieved strong revenue growth, particularly through fiber and mobile projects, and exceeded forecasts in several segments .
Current projects and developments
1.Fiber optic expansion:
- Deutsche Telekom plans to connect around 2.5 million new households to the fiber-optic network (FTTH) every year until 2027. The total number of households that can be connected is set to rise to 17.5 million, with a target take-up rate of 20% .
- A record 131,000 new fiber optic tariffs were already achieved in the third quarter of 2024 .
2.5G network and digitalization:
- The expansion of the 5G network is being systematically driven forward, with a target network coverage of 95% in Europe by 2027. The company is also investing in campus solutions and network slicing.
- Customer care processes and self-service offerings are increasingly being optimized using artificial intelligence to increase efficiency.
3.Business customers and B2B:
- Global business with business customers, particularly via the subsidiary T-Systems, is to be accelerated through cloud-based platforms and ICT solutions. Revenue growth in the billions is expected .
4.Sustainability and financial flexibility:
- In addition to record dividends (90 cents per share), Telekom is planning share buybacks worth up to 2 billion euros .
Competitive situation
Deutsche Telekom faces intense competition from other major providers such as $VOD (-0,74 %) , $TEF (-1,07 %) (O2) and regional players such as 1&1. While Vodafone and Telefónica are also investing in fiber projects and 5G, Deutsche Telekom stands out due to its dominant market position and global commitment.
Competitors:
-Vodafone: Strong focus on IoT and 5G technologies.
-Telefónica Germany (O2): Aggressive expansion of low-cost offers and regional partnerships.
-Freenet and 1&1: Increasing focus on innovative tariff models and attractive price points .
Prospects and possible new projects
Deutsche Telekom plans to further expand its digital offering, with a focus on payment services, AI-supported solutions for end customers and sustainable infrastructures. In addition, future investments in cloud-based services and partnerships could further increase revenue in the B2B area. Expansion in Europe remains a key area, while growth via T-Mobile US continues to be a key driver in the USA.
Overall, Deutsche Telekom is demonstrating a strong strategic focus on both sustainable infrastructure and digital innovation. It is expected to maintain and further expand its leading position in the German market.
https://www.mordorintelligence.com/de/industry-reports/germany-telecom-market
