Deutsche Telekom expands AI, cloud, and fiber strategies

Deutsche Telekom is prioritizing investments in AI infrastructure, sovereign cloud services, and fiber optic expansion. The company reported steady growth in its main markets during the first half of 2026, driven by its enterprise IT unit, T-Systems. T-Systems has secured significant contracts, including the development of Volkswagen’s global private cloud network, to meet rising European demand for secure, localized digital platforms.

While fiber customer numbers rose by 161,000 in the second quarter, the company experienced a loss of 20,000 broadband customers, which executives attributed to price-related churn. The company expects market conditions to stabilize by the fourth quarter.

Regarding satellite technology, CEO Timotheus Höttges stated that Deutsche Telekom is evaluating connectivity options from AST SpaceMobile and Amazon’s low-earth orbit (LEO) broadband project. While acknowledging the potential for competition in rural broadband markets, Höttges downplayed the threat posed by satellite providers like Starlink to terrestrial mobile operators, describing claims that satellite services could surpass existing mobile networks as ‘far-fetched and conceptual’.