Deutsche Telekom shifts fiber expansion focus to profitability

Deutsche Telekom is shifting its fiber optic expansion strategy to prioritize profitability and return on investment over the sheer volume of new connections. CEO Tim Höttges stated that the company's goal is no longer to build as much fiber as possible, but to ensure every built connection provides maximum customer benefit and economic value.

Currently, only 17.9 percent of Telekom's existing fiber connections are booked, compared to 30.2 percent for its competitors. To address this, the company will focus on five key metrics: demand, connection rates, cancellation rates, utilization of wholesale networks, and return on capital. This strategic pivot may delay nationwide fiber coverage by up to five years and puts the company's 2030 gigabit targets at risk. Meanwhile, Deutsche Glasfaser has also adjusted its expansion targets, reducing its goal from 6 million to 3.2 million households.