Chief executive Timotheus Höttges describes T-Systems as a strategic asset for Deutsche Telekom, particularly as demand for digital sovereignty increases in Europe
In sum – what to know:
Sovereign AI – Demand is rising for sovereign cloud, secure digitization, AI applications and infrastructure, with T-Systems positioned to address these opportunities.
Fiber expansion – Deutsche Telekom recorded 161,000 fiber net adds in Germany in Q2 and said it plans to substantially accelerate the run rate.
Network growth – T-Mobile U.S. remains a major growth engine, while Deutsche Telekom continues investing in networks, fiber and wireless technology leadership.
German carrier Deutsche Telekom is increasing its focus on AI infrastructure, sovereign cloud, and fiber deployment as the company reported continued growth across its markets in the first half of 2026.
In Germany, fiber remains a key area of investment as the carrier seeks to improve broadband performance and increase fiber monetization. Deutsche Telekom recorded 161,000 fiber net adds in the second quarter of the year and said it would “substantially accelerate this run rate.”
Deutsche Telekom’s chief financial officer Christian Illek said during a conference call with investors that fiber net adds increased 18% year-over-year, while fiber penetration increased 11%. The company said its broadband market remains challenging, with 20,000 customer losses during the quarter, largely explainable through price-related churn. Illek said the company expects this to moderate in the third quarter and normalize in the fourth quarter.
AI infrastructure and sovereign cloud are also becoming increasingly important for Deutsche Telekom through its T-Systems business. “Demand for sovereign cloud, demand for secure digitization, demand for AI applications and infrastructure is growing and T-Systems is our lighthouse to take advantage of these opportunities,” the carrier’s chief executive officer Timotheus Höttges said.
Höttges described T-Systems as a strategic asset for Deutsche Telekom, particularly as demand for digital sovereignty increases in Europe.
T-Systems secured two flagship contracts during the quarter. The company will build and operate Volkswagen’s global private cloud network and was awarded a contract with SAP to develop the central citizen app.
According to Illek, these contracts demonstrate that T-Systems is “really well positioned when it comes to digital sovereignty” and that the business is “at the center of what’s currently important on digitization and sovereignty here.”
Deutsche Telekom is also continuing to invest in its U.S. business. T-Mobile U.S. added 0.5 million accounts during the first six months, while postpaid phone churn declined to 0.85% in the second quarter.
Höttges said T-Mobile’s growth opportunities remain intact across rural markets, B2B, and fixed wireless, while the company is also investing in fiber opportunities and wireless technology leadership.
The company is also investing in AI-driven efficiency across its German operations. Höttges said Deutsche Telekom “systematically leverages AI to drive additional efficiencies,” while its mobile leadership is being further supported by network modernization.
Deutsche Telekom said it will continue investing in networks and customer experience across its European footprint, while integrating platforms to drive synergies.
Höttges also said the company’s strategy remains centered on investing in future profitability while maintaining disciplined capital allocation.
