At a recent capital markets day, Deutsche Telekom outlined ambitious targets for 2027, emphasizing the uptake of AI to enhance revenue and operational efficiency. The company expects an annual revenue growth of 4% and anticipates adjusted EBITDA AL to rise by 4-6%. Additionally, they aim for their free cash flow AL to reach approximately €21 billion by 2027.
Tim Höttges, CEO of Deutsche Telekom, remarked on the progress, stating, “In recent years, our strategy has made us the undisputed number one in Europe… the even greater use of artificial intelligence will help us to expand this position.” Indeed, Deutsche Telekom’s past performance places them ahead of their European peers. The company’s focus on AI is seen as a strategic move to maintain and expand this position.
As part of their growth strategy, Deutsche Telekom plans to significantly expand its infrastructure. This includes increasing fiber-optic and 5G network reach, targeting 17.5 million homes with fiber connectivity in Germany. Additionally, they aim to boost 5G coverage in Europe from 78% to 95% over the next three years, setting the stage for unparalleled connectivity in the region.
Meanwhile, Deutsche Telekom’s subsidiary, T-Systems, has strengthened its partnership with Broadcom by becoming a VMware Cloud Service Provider Pinnacle tier partner. This partnership underscores T-Systems’ capabilities in cloud solutions, facilitating businesses to modernize infrastructure through secure cloud platforms. Pinnacle status also allows T-Systems to offer managed private cloud services globally, including VMware Cloud Foundation solutions.
Ferri Abolhassan, CEO of T-Systems, emphasized the significance of this partnership, noting its role in their multi-cloud strategy. “Complemented by our Hyperscaler solutions, we can provide our customers exactly what they need. Always and worldwide,” he stated.
