Hannes Wittig


Hannes Wittig on the shareprice reaction on June 2, 2023

An article by Hannes Wittig, Head of Investor Relations Deutsche Telekom.

Last Friday, the Deutsche Telekom stock fell sharply. The closing price was around 9 percent below the previous day's price. Such a price drop is unusual, and deserves a closer look. The most recent volatility measure of the T-Share was 0.7. This means that the fluctuation range of the T-share is usually significantly lower than the DAX average.

What happened? In the U.S., Bloomberg reported that was negotiating with all mobile network operators (T-Mobile, Verizon, AT&T, and Dish) to develop a very low-cost mobile offering for its Prime customers. In view of the widespread use of Amazon Prime, this speculation initially caused a great deal of uncertainty among investors in telecommunications stocks. In the hours that followed, T-Mobile, Verizon and AT&T denied that they were talking to Amazon about such an offer. Amazon also stated that the company currently has no plans for a mobile offering in Prime. There was no official statement from Dish; the dish network is currently still under construction.  

In the U.S., market participants have taken a close look at this, and the prices of U.S. mobile carriers have since recovered somewhat. Investors continue to take a wait-and-see approach to Deutsche Telekom shares.

So here is some background:

  • The fact that Dish is entering the market as a new entrant is not unexpected. The American mobile market has always been very competitive - this is nothing new.
  • T-Mobile has been consistently successful in this market environment since the turnaround in 2012 and regularly acquires around 5 million new postpaid customers per year. Also in 2023 5.3 to 5.7 million are expected!
  • For the future, T-Mobile has a handful of special trump cards: T-Mobile has the best network, and the lead seems difficult to catch. T-Mobile is recognized as the cheapest of the major carriers. T-Mobile still has huge growth potential in rural areas, which make up around 40 percent of the country – at the moment, its market share is growing by more than one percent per year! In addition, T-Mobile is gaining in business customers and wireless broadband connections.
  • Over the past 10 years, T-Mobile shares have risen by more than 700 percent. This has also benefited Deutsche Telekom shares, which have outperformed the Dax significantly during this period.

So the following still applies: #wewontstop

Hannes Wittig, Head of Investor Relations

Hannes Wittig

Head of Investor Relations Deutsche Telekom.

Investor Relations