Deutsche Telekom Forges Ahead with Satellite Connectivity and Strong Financials

Deutsche Telekom partners with SpaceX Starlink for direct smartphone satellite connectivity in Europe by 2028, while reporting strong 2025 revenue and dividend growth.

Deutsche Telekom has entered into a landmark agreement with SpaceX's Starlink, setting the stage for a significant shift in European telecommunications. The partnership, announced at the Mobile World Congress in Barcelona on March 2, will enable direct smartphone-to-satellite connectivity across ten European markets starting in Spring 2028.

Strategic Satellite Partnership

The collaboration will leverage Starlink's second-generation satellites to deliver 5G-equivalent speeds directly to compatible mobile devices, eliminating the need for additional hardware. When a phone loses its terrestrial network signal, it will automatically switch to the satellite network. This technology is particularly aimed at areas where traditional infrastructure is challenging, such as nature reserves or regions with difficult topography. It also promises to provide a vital backup communication channel during natural disasters or prolonged power outages.

This initiative, the first of its kind in Europe to use Starlink's V2 satellites, will cover over 140 million subscribers within Deutsche Telekom's network footprint.

Robust Financial Performance for 2025

Alongside this strategic announcement, the Bonn-based group reported strong financial results for 2025. Group revenue reached €119.1 billion, representing organic growth of 4.2%. Adjusted EBITDA AL increased to €44.2 billion, an organic rise of 4.7%.

T-Mobile US continues to be a primary growth driver, with service revenues climbing 7.8% and nearly eight million new postpaid customers added. As of February 2026, Deutsche Telekom holds a 52.8% stake in T-Mobile US, ensuring direct access to its substantial cash flow.

The company's domestic operations in Germany remained solid. Service revenue grew organically by 1.1%, while the adjusted operating result advanced 1.7% to €10.7 billion. The fiber-optic rollout achieved record numbers, with 2.5 million new connections added in 2025, bringing total coverage to 12.6 million households.

Shareholder Returns and Forward Outlook

For the 2025 fiscal year, the board has proposed a dividend of €1.00 per share, an increase of eleven percent over the prior year. This distribution will be made from the tax contribution account, which typically exempts domestic investors from capital gains tax. Furthermore, the company plans share buybacks of up to €2 billion in 2026.

Guidance for 2026 appears ambitious. Adjusted EBITDA AL is projected to rise to approximately €47.4 billion, with Free Cash Flow AL expected around €19.8 billion. Adjusted earnings per share are forecast at about €2.20, representing a currency-adjusted increase of roughly ten percent. The Annual General Meeting is scheduled for April 1, 2026, with Q1 figures to be published on May 13.