Deutsche Telekom Modernizes Half Its Mobile Sites as T-Mobile Teams With AT&T and Verizon on Satellites

Telekom says over 80% of German sites now have fiber backhaul, targets 90% at 1 Gbps per cell, as T-Mobile US joins AT&T and Verizon on satellite.

Deutsche Telekom has upgraded roughly half of its domestic mobile network sites, the Bonn-based carrier said Wednesday, pairing that milestone with an aggressive fiber-backhaul target and a fresh batch of new antenna sites switched on during August.

More than 80% of the company's German locations are now linked to fiber-optic lines, a figure Telekom intends to push higher as mobile data traffic keeps climbing. The operator's stated ambition is for 90% of all sites to deliver a download capacity of 1 gigabit per second per cell in the years ahead.

The buildout continued through late summer. In August alone, Telekom activated 115 new sites across Germany, while technicians expanded capacity at 401 existing masts.

T-Mobile Joins Forces With Its Biggest US Rivals

Across the Atlantic, the group's US subsidiary is pooling resources with the very competitors it battles for subscribers. T-Mobile, AT&T and Verizon announced a joint venture on Thursday aimed at closing coverage gaps in underserved parts of the United States through satellite-based service.

The three carriers are combining their resources to pursue shared technical standards and direct network access for end-user devices, a setup designed to complement existing terrestrial networks and serve as emergency backup. The partners had already floated plans in May to pool spectrum resources. Paul Roth takes the helm of the new entity as interim CEO while a permanent appointment is sought, and the companies' existing satellite agreements remain untouched by the cooperation.

Diverging Analyst Views on the Stock

Sentiment around the DAX-listed shares has been anything but uniform. Berenberg analyst Nick Lyall reaffirmed a buy rating on Thursday with a price target of EUR 35.20, calling market worries about artificial intelligence risks overdone. He expects resilient earnings momentum at selected European sector heavyweights and sees additional upside from industry consolidation.

That optimism contrasts with a more cautious call elsewhere in the analyst community, which cut its target to EUR 28.10 from EUR 37, citing reports of a possible merger involving T-Mobile US and mounting competitive pressure in the German fixed-line market.

The stock has been stuck in a softer stretch. It closed Thursday at EUR 26.09, down 0.08%, and was trading at EUR 26.05 in the latest session, a decline of 0.2%.

Regulatory Relief and a Broader Consumer Push

European telecom has come under noticeable pressure of late, weighed down by uncertainty over US operations and relentless competition in German broadband. Even so, many market watchers see room for a recovery, pointing to intact operating growth.

Brussels could hand the company another lever. Bernstein sees fresh strategic room for the carrier in a potentially loosened EU timetable covering certain network components.

Beyond its core network business, Telekom keeps widening its consumer offerings. Marketing of green electricity tariffs began Thursday through the MeinMagenta app in partnership with Rabot Energy; supply and customer service sit entirely with Rabot, and a switching bonus of up to EUR 350 is on offer at launch. On the streaming side, the company secured exclusive rights to the Basketball Champions League for MagentaSport, which will show every game involving German clubs plus all matches from the quarterfinals onward. Play begins on October 6.

What Investors Are Watching Next

Two dates anchor the autumn calendar. Telekom hosts its AI Investor Day on October 5, where management is expected to lay out its artificial intelligence initiatives, followed by third-quarter results on November 5 that will shed light on operating growth.