16 Other provisions
The carrying amount of current and non-current other provisions stood at EUR 7.9 billion as of December 31, 2025, unchanged against the prior-year level. This was primarily attributable to the factors described below.
Provisions for termination benefits and other provisions for personnel costs include, among other components, provisions for staff restructuring. These have developed as follows in the 2025 financial year:
Provisions for termination benefits increased by EUR 0.2 billion, primarily due to the 2025 Workforce Transformation. The program aims to optimize workflows by centralizing executives and teams, reducing organizational levels, and eliminating duplicate roles.
Other provisions for personnel costs decreased by EUR 0.3 billion, due in part to a decline in provisions for short- and long-term variable remuneration components. The carrying amount of the provision recognized for the Civil Service Health Insurance Fund (Postbeamtenkrankenkasse – PBeaKK) declined by EUR 0.1 billion, mainly due to an increase in the discount rate. Exchange rate effects, primarily from the translation of U.S. dollars into euros, also decreased the carrying amount by a further EUR 0.1 billion. Other provisions for personnel costs also include provisions for deferred compensation and allowances, as well as for anniversary gifts.
The provisions for restoration obligations increased by EUR 0.1 billion. Effects of changes in the composition of the Group resulting mainly from the UScellular Acquisition in the United States operating segment increased the carrying amount by EUR 0.2 billion. By contrast, exchange rate effects, primarily from the translation of U.S. dollars into euros, reduced the carrying amount by EUR 0.1 billion. Provisions for restoration obligations include the estimated costs for dismantling and removing assets, and restoring the sites on which they are located. The estimated costs are included in the costs of the relevant assets.
The provisions for litigation risks remained at the prior-year level. They primarily relate to possible settlements attributable to pending lawsuits.
Provisions for sales and procurement support increased by EUR 0.1 billion. These provisions are recognized for dealer commissions and market development funds (advertising subsidies, and refunds).
Miscellaneous other provisions remained at the prior-year level. These include provisions related to onerous executory contracts, the disposal of businesses and site closures, in particular in prior financial years, as well as warranty and environmental damage provisions.
In the measurement of the other provisions, Deutsche Telekom is exposed to interest rate fluctuations, which is why the effect of a possible change in the interest rate on the principal non-current provisions was simulated. The other, non-staff-related provisions are discounted using maturity-related discount rates specific to the respective currency area. To this end, Deutsche Telekom determines discount rates with maturities of up to 30 years. In 2025, the discount rates ranged from 2.43 to 5.04 % (2024: from 2.52 to 3.78 %) in the euro currency area and from 4.26 to 6.53 % (2024: from 4.81 to 6.09 %) in the U.S. dollar currency area. If the discount rate were increased by 50 basis points with no other change in the assumptions, the present value of the principal other non-current provisions would decrease by EUR 64 million (December 31, 2024: EUR 59 million). If the discount rate were decreased by 50 basis points with no other change in the assumptions, the present value of the principal other non-current provisions would increase by EUR 67 million (December 31, 2024: EUR 60 million).