Deutsche Telekom Capitalizes on Rival's Fibre Slowdown as Share Buybacks Ramp Up
Published on 07/09/2026 at 12:45 | Redaktion boerse-global.de
Germany's fibre-optic rollout has hit a snag, and the country's former telecoms monopoly is quietly turning that into an advantage. Rising construction costs and tighter financing have forced several Deutsche Telekom competitors to dial back their expansion targets, according to reports from Spiegel and Manager Magazin. The Bonn-based group, with its deep-rooted legacy infrastructure, is seeing lower churn and steady market share as a result — a rare tailwind in a sector buffeted by macro headwinds.
The company is simultaneously pressing ahead with its capital-return strategy. Between 1 and 3 July, it repurchased 908,705 shares for €22.48 million via Xetra electronic trading. Then, on 9 July, it stepped up the pace, buying 20.3 million shares for €40 million in a single day. The current buyback programme, which runs through the end of September, authorises up to €560 million in purchases (maximum 23.5 million shares) and sits within a broader €2 billion mandate valid through 2026. By reducing the free float, the buybacks can lift earnings per share even when the stock price treads water.
And tread water it has. Deutsche Telekom shares closed at €25.22 on Thursday, down 9.51% since the start of the year and 9.25% over the past month alone. The stock trades well below its 50-day moving average of €27.41 and its 200-day average of €28.70, with the relative strength index at 38.9 — not yet oversold but clearly under strain. From the February record of €34.35, the shares are off by roughly 26.6%. That low point came on 30 June, when the price hit a 52-week trough of €23.54, from which it has since recovered about 8.5%.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
External pressures are keeping the market jittery. The International Monetary Fund cut its 2026 German growth projection to 0.7% on 8 July, and rising geopolitical tensions in the Middle East have pushed the ten-year Bund yield to 3.09%, squeezing interest-rate-sensitive sectors like telecommunications. Yet within the sector, Deutsche Telekom's competitive position has actually strengthened: rivals that had been chipping away at its fibre dominance are now pulling back, leaving the incumbent with less disruption from alternative providers.
Against this uneven backdrop, the company continues to upgrade its physical and digital networks. In the town of Nachrodt-Wiblingwerde, Deutsche Telekom is taking over a stalled fibre project to connect roughly 2,000 households and businesses, with construction slated to start by October. Meanwhile, its U.S. subsidiary T-Mobile US will switch off its 2G network on 3 August, freeing up spectrum for future 5G and 6G services. The next major test for the stock will come on 6 August, when the group reports its quarterly earnings. Until then, the buyback programme stands as the clearest signal of management confidence — even as the share price remains far from its highs.
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