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The US segment generated €20.5 billion in revenue for Deutsche Telekom in Q3, up 9.1% year-on-year, while revenue in Europe rose 4.2% to €3.3 billion
In summary – what to know
Financial growth continues – Q3 revenue increased 7.5% to €31.1 billion and net profit increased 13.8% to €2.8 billion. Deutsche Telekom raised its 2026 adjusted EBITDA AL and free cash flow AL forecasts.
Spectrum and SpaceX – T-Mobile US is preparing for further spectrum investments in 2027, while CEO Tim Höttges estimates that SpaceX needs at least 200 billion euros to compete in terrestrial connectivity.
RAN Strategy Advances – Deutsche Telekom develops its own RAN controller and sells the software to Vodafone and Telefónica in Germany.
German telco Deutsche Telekom is preparing for a changing wireless landscape, with plans for increased spectrum investment at T-Mobile US, a joint application for satellite spectrum in Europe and further development of its own Radio Access Network (RAN) controller.
The company’s Q3 2026 earnings call also highlighted the company’s CEO Tim Höttges’ assessment of the potential challenge of SpaceX’s ambitions in terrestrial connectivity.
The strategic remarks came as Deutsche Telekom reported a 7.5% year-on-year increase in revenue in the third quarter to €31.1 billion ($34.6 billion) and a 13.8% increase in net profit to €2.8 billion.
The United States remained the largest contributor to group revenues. The US segment generated €20.5 billion, up 9.1%, while revenue in Europe rose 4.2% to €3.3 billion. Germany’s income grew by 3.9% to 6.6 billion euros.
Deutsche Telekom raised its 2026 guidance after higher expectations at T-Mobile US. It now expects adjusted EBITDA AL of around 47.6 billion euros, compared to its previous forecast of around 47.5 billion euros.
T-Mobile is preparing for further US spectrum investments
Höttges described upcoming US spectrum auctions as an opportunity for T-Mobile to strengthen its position in spectrum and network infrastructure. In his remarks, he said that T-Mobile had 380 MHz of high-quality low- and mid-band spectrum, which he argued was a match for competitors.
Spectrum will also take a larger share of Deutsche Telekom’s investment allocation in 2027. During the Q & A with analysts, Deutsche Telekom’s management confirmed that the US C-band auction was an important factor in decisions about the size of the company’s planned share purchase.
Höttges said the proposed buyback of up to 2 billion euros in 2027 must be balanced against investments in the core business and strategic opportunities, especially spectrum in the US
The company is also pursuing a satellite spectrum initiative in Europe. Deutsche Telekom is exploring a joint bid with three other operators for mobile satellite service (MSS) spectrum. Höttges confirmed that the group intends to apply for 20 MHz.
He said the initiative is intended to avoid dependence on a single satellite operator and to structure access in a way that benefits the wider European telecoms industry. He also noted that US satellite operators, including SpaceX, can apply for spectrum in Europe, subject to the relevant security, resilience and regulatory requirements.
Deutsche Telekom assesses SpaceX’s terrestrial ambitions
Höttges said satellite services will not replace terrestrial mobile networks, citing capacity constraints and the challenge of providing indoor coverage. He nevertheless stressed that Deutsche Telekom takes SpaceX’s ambitions seriously.
The executive noted that SpaceX has acquired 76 MHz of spectrum and needs further spectrum and network infrastructure to compete in terrestrial connectivity. He cited T-Mobile’s 85,000 towers and said that renting tower infrastructure still entails an estimated €20 billion to €30 billion in additional costs.
Höttges estimates that SpaceX needs at least 200 billion euros to enter terrestrial telecommunications at scale. He outlined two possible paths for SpaceX: building a network or buying an existing operator. Höttges said an acquisition provides immediate cash flow, although it offers less control over the value chain. He said he would personally favor the acquisition route. SpaceX has held talks with EchoStar about buying Boost Mobile or gaining access to the network Boost uses, according to a recent Washington Post report.
He also warned against seeing SpaceX as simply another mobile operator. In its assessment, the company is creating a new category of communication services by combining satellites, chipsets, data centers, AI and mobile connectivity.
Deutsche Telekom is developing its own RAN controller
The call also included an update on Deutsche Telekom’s RAN software strategy amid discussions about a possible replacement of Huawei equipment in Germany.
Höttges said the company has no Chinese equipment in its core or optical networks. For RAN steering, Deutsche Telekom is developing its own controller to take control of the software layer. “We have made good progress in developing this software,” he said, adding that the company sold the software to Vodafone and Telefónica in Germany to recoup their development costs.
On the prospect of a faster replacement of Huawei equipment, Höttges said he understood that a 36-month “rip and replace” requirement was “more or less off the table”. He warned that the wider replacement process could cost the European telecommunications industry €40 billion and delay investment in new technologies, including 6G.