Deutsche Telekom Keeps Its US Merger Option Alive While the Network Build-Out Quietly Rolls On
Published on 11/02/2026 at 03:11 | Editorial boerse-global.de
Deutsche Telekom has parked — but not abandoned — the idea of merging with its American subsidiary. Reuters reported on Thursday that no formal offer has been tabled, and that resistance from the works council is one reason the group has stepped back from the transaction for now. A fresh attempt at a later date remains possible, according to the agency.
That distinction matters for shareholders. A postponement is not a cancellation, and with no formal bid on the table there are no terms against which investors could price the consequences. The works council's opposition also makes clear that any reorganization of the group hinges on more than the balance sheet. The strategic option stays open without any signal that it will be exercised — a merger is neither agreed nor ruled out.
T-Mobile US Delivers the Operating Counterweight
While the structural question simmers, the US arm keeps producing hard numbers. T-Mobile US posted third-quarter 2026 revenue of USD 23.6 billion, up 7%, alongside adjusted EBITDA of USD 9.6 billion, according to dpa-AFX on Thursday. The subsidiary also grew more optimistic about its operating profit and cash flow outlook — an operating counterweight to the competitive worries that had been weighing on Telekom shares. Even without a merger offer, the US business remains a key reference point for investors in the parent.
JPMorgan left its "Overweight" rating and EUR 38 price target on Deutsche Telekom unchanged on Thursday, with analyst Akhil Dattani calling the T-Mobile US figures in line with expectations while flagging uncertainty over a possible combination. No upgrade or target hike accompanied the note.
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Barclays had taken a more cautious line earlier. On October 20 the bank cut its price target to EUR 32 while keeping "Overweight," with analyst Maurice Patrick pointing to risks from satellite technology and agentic AI. The focus there was not near-term subscriber counts but potential technological shifts across the telecom sector.
September Build-Out: New Sites and Extra Capacity
Back in Germany, the group reported concrete network progress. In September it brought 72 new mobile sites into service and raised capacity at 503 existing locations — two distinct strands of network development, since new sites expand coverage while capacity upgrades squeeze more out of infrastructure already in place. The fixed-line side advanced as well: on October 27 the company reported 255,000 additional fiber connections for September.
Those figures document operational activity rather than its financial contribution, so the link between infrastructure progress and business performance stays the decisive factor for valuation.
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A Managed Network Service for Enterprise Customers
Beyond the build-out, Deutsche Telekom and Rohde & Schwarz Networks and Cybersecurity announced on October 27 a jointly offered, fully managed service for sovereign corporate networks, covering LAN and WLAN. The product launch is slated for 2026. Unlike the September figures, which describe measures already implemented, this offering is still ahead of the companies.
The group has scheduled its third-quarter 2026 report for November 5, 2026 — the next occasion to judge network expansion, enterprise offerings and the US subsidiary's trajectory against consolidated figures. The shelved transaction, meanwhile, should not be read as a deterioration in the running business.
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