DEUTSCHE TELEKOM AG — EXECUTIVE MEMO
"Managing Success: T-Mobile Growth and European 5G Monetization"
To: Management Board From: Chief Executive Officer Date: June 2030
SITUATION
Deutsche Telekom is experiencing unusual success for European telecom. T-Mobile US growing 8-10% annually. European 5G monetization emerging. Total growth accelerating.
Challenge: managing portfolio balance between high-growth T-Mobile US and stable German/European business.
CURRENT STATE
Group Revenue: €142B (up 25% since 2025) T-Mobile US: 32% of revenue, growing 8-10% Germany: 45% of revenue, growing 2-3% Europe: 18% of revenue, growing 4-5% EBITDA margin: 39.8%
KEY DECISIONS
1. T-Mobile US Investment Strategy - Continue aggressive marketing/coverage expansion - Target: 25% market share by 2035 - Capex: $4-5B annually for network expansion - M&A: selective (acquire spectrum/capacity if opportunities emerge)
2. European 5G Monetization - Enterprise 5G: focus on factories, smart cities, IoT - Fixed wireless: compete with fiber for broadband - Target: 5G revenue 25% of total by 2035
3. Dividend Policy - Maintain 2.5-3% dividend yield - Grow dividend 3-4% annually - Use excess cash for T-Mobile capex and share buybacks
BOARD APPROVAL REQUIRED
- T-Mobile US investment strategy (continued $4-5B annual capex)
- European 5G monetization targets
- Dividend policy (2.5-3% yield, 3-4% growth)
- M&A authorization ($3-5B for strategic opportunities)
Confidential board memo