Deutsche Telekom: 5G Breakthrough and 32,000-Strong Strike Put Buyback Programme in the Spotlight
Published on 05/28/2026 at 04:01 | Redaktion boerse-global.de
Deutsche Telekom has hit a new milestone in network coverage while simultaneously facing one of its largest labour disputes in years. The Bonn-based group now reaches roughly 99% of German households with its 5G signal — a technical achievement that stands in stark contrast to the 32,000 employees who walked out on strike ahead of the latest wage talks in Potsdam.
Network Upgrade Gathers Pace
April saw 81 new mobile sites go live, with another 548 existing locations receiving capacity upgrades. The headline figure, however, is the strategic shift in spectrum management: Telekom has switched off Dynamic Spectrum Sharing (DSS) in the 2,100 MHz band, freeing that frequency exclusively for 5G. By no longer sharing the airwaves with LTE, the operator expects improved stability and performance — a move that should bolster its competitive edge as traffic volumes keep rising.
Labour Standoff Escalates
On the ground, the mood is less celebratory. Ver.di, the services union, is demanding a 6.6% pay increase over twelve months for roughly 60,000 to 70,000 tariff employees, combined with an annual membership bonus of €660. Management has so far dismissed the proposal as unaffordable. The fourth round of formal negotiations, scheduled for 26 and 27 May, is being billed as the final scheduled round — meaning a breakthrough or an escalation is imminent.
The industrial action has already left a mark. Customer service response times are lagging, installation appointments are being cancelled at short notice, and fibre rollout in some areas has slowed. Any prolonged dispute would risk pushing back medium-term network expansion targets.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Shareholder Returns Remain a Priority
None of this has deterred the group’s capital allocation strategy. Since launching its latest buyback programme on 2 April, Telekom has repurchased more than 11.4 million of its own shares, paying an average price of roughly €29 apiece. The purchases — which included 1.53 million shares between 18 and 22 May at €28.99 and a further 895,055 shares on 25–27 May at €29.30 — are part of a plan to return up to €2 billion to shareholders in 2026 through buybacks alone.
Most of the acquired stock will be cancelled. On 29 April the board authorised the cancellation of 55.4 million shares bought back under the 2025 programme, shrinking the total share count and mechanically lifting earnings per share. A smaller tranche is reserved for employee and management incentive plans.
The dividend, meanwhile, is flowing again. The annual general meeting on 1 April approved a payout of €1.00 per share, worth €4.8 billion in total. Between the dividend and share buybacks, Telekom is on track to hand back roughly €6.8 billion to its owners this year.
Cash Flow Underpins the Confidence
Such generous distributions are backed by robust cash generation. In the first quarter, free cash flow after leases (AL) hit €5.7 billion, while management has guided for more than €19.8 billion over the full year. Adjusted EBITDA AL is now expected to come in at around €47.5 billion — slightly above the previous forecast of €47.4 billion. Organic revenue rose 4.7% year-on-year in the opening quarter to €29.9 billion, confirming the underlying operational health.
Deutsche Telekom at a turning point? This analysis reveals what investors need to know now.
Stock Drifts Near Technical Thresholds
At the market close on Wednesday, the shares stood at €29.45, just 1% above the 200-day moving average of €29.16. The relative strength index (RSI) reads 74.8 — technically overbought territory, though not an automatic sell signal. The stock has gained 5.7% since the start of the year, but remains 13% below its 52-week high of €33.95 touched in February.
The ongoing buyback provides a natural bid beneath the stock, yet the labour impasse weighs on sentiment. Should the negotiations break down without a deal, investors will have to weigh the drag of prolonged walkouts against the steady drip-feed of share repurchases and the tangible progress in 5G coverage. For now, the next few days in Potsdam will set the tone.
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