Deutsche Telekom Faces a Trio of T-Mobile US Headaches as a €560M Buyback Fails to Revive the Stock
Published on 07/06/2026 at 18:07 | Redaktion boerse-global.de
Deutsche Telekom’s beleaguered shares are caught between operational upheaval at its American subsidiary and a multibillion-dollar takeover rumor, even as management deploys a steady stream of share repurchases. The stock clawed back 0.56% to €25.34 on Monday, recovering from a 52-week low of €23.54 hit just two weeks earlier, but remains deep in negative territory for both the year and the past twelve months.
The most immediate challenge comes at T-Mobile US, which must pull the plug on its legacy 2G network by August 3, 2026 — freeing up spectrum for advanced standards as part of a defensive move against satellite-based competitors such as Starlink. Simultaneously, a bitter licensing dispute with Broadcom over VMware support fees is forcing the US carrier to relocate tens of thousands of virtual machines off Broadcom’s platform. The migration involves more than 300,000 CPU cores, and a court-ordered support guarantee expires in early August. Analysts view the exit from expensive licensing as a long-term margin booster, but the execution risk is weighing on sentiment.
Adding to the noise is a speculative report from TD Cowen suggesting that SpaceX could acquire T-Mobile US in a deal worth up to $320 billion — a figure that would represent a substantial premium over the carrier’s market capitalisation of roughly $192–195 billion. Neither Deutsche Telekom, T-Mobile US, nor SpaceX has confirmed the rumour, but the mere possibility has unsettled investors who rely on the US unit for the bulk of the group’s growth. The German parent holds a 54% controlling stake, and UBS recently argued that buying out the remaining shares would offer little strategic upside, dismissing the recent selloff as overdone.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
To shore up confidence, management has kept the buyback machine running. A third tranche of the current repurchase programme, worth up to €560 million, began in July and will run through September. The full-year target remains around €2 billion. Yet the stock still trades nearly 9% below its 50-day moving average of €27.49 and roughly 12% below the 200-day line. The relative strength index hovers in the low- to mid-30s — between 38.5 and 39.2 — signalling oversold conditions rather than a genuine trend reversal.
On a more positive note, Deutsche Telekom is quietly strengthening its domestic fibre business. According to reports in manager magazin, deployment costs in Germany are up to seven times higher than in Spain, forcing smaller rivals to lose ground. The telecom incumbent is exploiting that weakness to consolidate its home market position, a move some observers say points toward a renewed monopoly.
The next major catalyst arrives on August 6, 2026, when the board publishes its quarterly report. Investors will be looking for concrete updates on the IT migration in the US, the impact of new tariff structures on average revenue per user, and any further clarity on the SpaceX chatter. For income-focused holders, the projected dividend of €1.13 per share for the current year continues to provide a floor — but with the stock still down 18.3% from its February high of €34.35, patience is wearing thin.
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