Deutsche Telekom’s Shares Stall as MMS Era Ends and Union Ballot Approaches

Deutsche Telekom shares dip as MMS ends in 2026, union vote looms, but Q1 revenue rises 4.7% and EBITDA guidance raised to €47.5B.

The Bonn-based telecoms group is navigating a week of structural change and internal negotiation, yet its stock remains anchored near flat for the year. On Monday, shares slipped 1.55 percent to €27.89, pressured by a combination of technical resistance and uncertainty over a pending labour decision that could affect tens of thousands of employees.

The latest dip tests the strength of a bullish crossover that occurred on 12 June, when the share price broke above its 38-day moving average. That signal now faces a challenge: the 50-day line sits at €28.55, just above current levels, while the 52-week high of €34.35 remains a distant mark.

A Legacy Service Fades Away

After more than two decades, Deutsche Telekom will pull the plug on its Multimedia Messaging Service (MMS) on 30 June 2026. The move aligns the company with industry peers — Telefónica (o2) and 1&1 are exiting the same date, and Vodafone had already retired the service in early 2023. The phase-out ends one of the oldest mobile functions across Germany’s four-network landscape.

The successor is RCS (Rich Communication Services), a data-based standard that supports text, images, videos, documents and voice messages through the default messaging app at no extra cost. Android users have long enjoyed RCS; Apple has now integrated it as well. Notably, 1&1 has supported RCS encryption from the beta launch with iOS 26.5, and the other operators are following suit.

Operational Momentum Keeps Building

Beyond the messaging sunset, Deutsche Telekom’s core business continues to deliver. In the first quarter, service revenue rose 4.6 percent year-on-year, while group revenue grew organically by 4.7 percent to €29.9 billion. Adjusted EBITDA AL climbed 7.5 percent to €11.5 billion, prompting management to raise its full-year guidance. The company now targets adjusted EBITDA AL of approximately €47.5 billion for 2026, with free cash flow AL expected to exceed €19.8 billion.

A €2 billion share buyback programme is under way, with 13.66 million shares already repurchased as of last week. The programme is designed to support the stock, though it has so far done little to counter the sideways drift.

Fibre Expansion and Football Retention

Long-term growth hinges on infrastructure investment. Deutsche Telekom aims to add 2.5 million new fibre-optic connections this year, backed by an additional €800 million earmarked for its rollout. At the same time, the company is using its MagentaTV platform to lock in customers during the football World Cup, broadcasting all 104 matches — including 44 exclusive games. Special coverage targeting Turkish fans is part of a broader push to differentiate in a fiercely competitive broadband and TV market.

The Verdict That Could Move the Needle

The most immediate catalyst for the share price, however, lies off the pitch. On Wednesday, the ver.di union’s tariff commission will vote on a new wage package covering approximately 60,000 employees. A “yes” vote would bring planning certainty for a major cost line. A rejection would force the parties back to the bargaining table, injecting fresh uncertainty into a stock that has already struggled to gain traction since the start of the year.

With the 50-day moving average in sight, a positive outcome could give the shares the lift they need to test that resistance. For now, investors are waiting — and watching both the legacy shutdown and the labour decision.