6 Intangible assets

The carrying amount of intangible assets decreased by EUR 15.5 billion to EUR 133.7 billion. Exchange rate effects of EUR 14.8 billion, primarily from the translation of U.S. dollars into euros, and depreciation, amortization and impairment losses of EUR 6.8 billion decreased the carrying amount. Reclassifications of intangible assets to non-current assets and disposal groups held for sale also reduced the carrying amount by EUR 5.1 billion. In the United States operating segment, this related to the agreed sale of spectrum licenses to Grain for EUR 3.1 billion, and the sale of spectrum licenses to N77 for EUR 1.7 billion, as described in the section “Agreements on spectrum licenses.” In addition, further agreements were entered into in the reporting period for the exchange of spectrum licenses. Disposals reduced the carrying amount by EUR 0.3 billion, mainly due to the write-off of not-in-service capitalized software development costs related to a billing system in the United States operating segment, while investments increased it by EUR 8.4 billion. EUR 1.9 billion of this related to the acquisition of mobile spectrum, of which EUR 1.3 billion related to the acquisition of mobile spectrum in the United States operating segment, including EUR 0.5 billion for the acquisition of the remaining Channel 51 licenses, as described in the section “Agreements on spectrum licenses.” A further EUR 0.2 billion related to the Germany operating segment and the extension of the allocation of licenses by the Bundesnetzagentur in the 800 MHz, 1,800 MHz, and 2,600 MHz spectrum bands. In the Europe operating segment, mobile spectrum was acquired in Poland for EUR 0.3 billion, and in Slovakia for EUR 0.2 billion. This was recorded under advance payments and intangible assets. A further EUR 1.3 billion of the investments related to the acquisition of customer bases outside of business combinations, mainly from Metronet. Effects of changes in the composition of the Group mainly resulting from the acquisition of UScellular, Vistar Media, and Blis increased the carrying amount by EUR 3.1 billion, with goodwill accounting for EUR 0.6 billion of this.

For further information on amortization and impairment losses, please refer to Note 27 “Depreciation, amortization and impairment losses.”

Agreements on spectrum licenses

T‑Mobile US consummated a number of transactions agreed with telecommunications companies for the exchange of spectrum licenses in the reporting year. The fair values of the licenses received in these transactions amounted to EUR 0.4 billion in total. The resulting overall gain was immaterial. The licenses transferred as part of the exchange transactions, which had a carrying amount of totaling EUR 0.4 billion, were recognized in non-current assets and disposal groups held for sale after being reclassified when the agreements were concluded, and up to the point at which the transactions were consummated.

On September 10, 2024, T‑Mobile US and N77 License Co. LLC (N77) entered into an agreement on the sale of spectrum licenses, pursuant to which N77 had the option to purchase all or a portion of T‑Mobile US’ remaining 3.45 GHz licenses for a certain range of cash consideration. The number of licenses sold was determined based upon the amount of committed financing granted to N77. On April 30, 2025, T‑Mobile US sold a portion of the licenses to N77 in exchange for a purchase price of USD 2.0 billion (EUR 1.8 billion). The sale generated income of EUR 0.1 billion following regulatory approvals by the U.S. Federal Communications Commission (FCC). The licenses transferred as part of the transaction, which had a carrying amount totaling EUR 1.7 billion, were recognized in non-current assets and disposal groups held for sale after being reclassified as a result of the agreement, and up to the point at which the transaction was consummated.

On August 8, 2022, T‑Mobile US entered into agreements with Channel 51 License Co, LLC and LB License Co, LLC (Sellers) for the acquisition of spectrum licenses in the 600 MHz band in exchange for a total cash consideration of USD 3.5 billion (EUR 3.2 billion). On March 30, 2023, the contractual parties had further agreed that the transaction be divided into two separate tranches. The FCC had previously approved the transfer of the first tranche of licenses. This transfer was concluded on June 24, 2024. The corresponding purchase price payment of USD 2.4 billion (EUR 2.2 billion) was made on August 5, 2024. On October 22, 2024, the FCC approved the transfer of certain licenses from the second tranche. These licenses were transferred and the associated purchase price of USD 0.5 billion (EUR 0.5 billion) paid on December 6, 2024. The transaction for the remaining licenses from the second tranche was closed on June 2, 2025 with the purchase price payment of USD 0.6 billion (EUR 0.5 billion), following regulatory approvals by the FCC.

For further information, please refer to Note 5 “Non-current assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale.”

The following agreements will have an impact on the presentation of Deutsche Telekom’s results of operations and financial position in the future:

On May 30, 2025, T‑Mobile US entered into an agreement on the sale of 800 MHz spectrum licenses to the group companies of Grain Management, LCC (Grain) in exchange for cash consideration of USD 2.9 billion (EUR 2.5 billion) and the receipt of Grain’s 600 MHz spectrum licenses. It has been further agreed that T‑Mobile US will additionally receive a share of future proceeds from transactions entered into by Grain that monetize the 800 MHz spectrum licenses, subject to certain terms and conditions. Since May 30, 2025, the licenses concerned have been reported as held for sale with a carrying amount of EUR 3.1 billion. The transaction is subject to FCC approvals and certain other customary closing conditions. The transaction is expected to be closed in the first half of 2026. The proceeds from the sale are expected to be immaterial for the results of operations of the Group.

On September 12, 2023, T‑Mobile US agreed with U.S. cable network operator Comcast Corporation (Comcast) to acquire spectrum in the 600 MHz band in exchange for total cash consideration of between USD 1.2 billion and USD 3.3 billion (EUR 1.0 billion and EUR 2.8 billion), depending on the number of underlying licenses. The final purchase price will be determined at the time the parties make the required transfer filings with the FCC. At the same time, T‑Mobile US and Comcast have concluded exclusive leasing arrangements. The leasing rights for T‑Mobile US will apply for at least two years, regardless of whether Comcast decides to remove part of its licenses from the purchase agreement. On January 13, 2025, T‑Mobile US and Comcast entered into an amendment to the license purchase agreement pursuant to which T‑Mobile US will acquire additional spectrum. As a consequence of the amendment, the total cash consideration amounts to between USD 1.2 billion and USD 3.4 billion (EUR 1.0 billion and EUR 2.9 billion). A partial acquisition of spectrum licenses with a value of approximately USD 45 million (EUR 38 million) is expected in the first half of 2026. The acquisition of the remaining licenses is then expected to close in the first half of 2028.

For further information, please refer to Note 42 “Other financial obligations.”

Reversal in 2024 of impairment losses recognized in prior years on FCC licenses in the United States operating segment

In 2024, impairment losses on FCC licenses previously acquired by T‑Mobile US were reversed in full (EUR 2.6 billion before deferred taxes). These FCC licenses were impaired as of September 30, 2012 following ad hoc impairment testing of the United States cash-generating unit. Regular assessments had to be made in subsequent periods to determine whether the reasons for impairment still existed – in full or in part. The fair value less costs of disposal of the United States cash-generating unit derived from the share price of T‑Mobile US, which has been listed since 2013, has significantly exceeded its carrying amount for some years now. However, the reversal is limited to the lower of the recoverable amount of the impaired spectrum licenses determined by the fair value less costs of disposal on the one hand and the acquisition cost of these licenses on the other. An initial reversal of the impairment loss in the amount of EUR 1.7 billion (before deferred taxes) was recognized in the third quarter of 2017, which was indicated back then by the results of the 600 MHz spectrum auction completed in 2017. The measurement of Sprint’s FCC licenses at fair value in connection with the purchase price allocation following the business combination of T‑Mobile US and Sprint effective April 1, 2020 indicated a further increase in the PCS licenses’ value, and resulted in a further reversal of an impairment loss of EUR 1.6 billion as of December 31, 2020. As the impairment of the FCC licenses related entirely to the PCS licenses, only these licenses were subject to the reversals of the impairment losses.

Starting in 2024, in connection with the build-out of the 5G network, PCS and AWS spectrum – both of which belong to the mid-band spectrum – have increasingly been used on the same network components. That means the two frequency bands are now interchangeable and, as such, are to be regarded as a single unit of account for the purposes of testing for reversal of impairment. Furthermore, with the conclusion of the integration of the Sprint network, the licenses acquired under that business combination are now also part of the unit of account. Overall, these developments indicated a fair value of the combined mid-band unit of account that was significantly higher than the sum of the carrying amounts. This resulted in a remeasurement of the combined PCS and AWS licenses of T‑Mobile US in 2024 using the greenfield method (Level 3 input pursuant to IFRS 13), which was validated by a market value approach (Level 2 input pursuant to IFRS 13). The market approach drew on market prices from comparable auctions and secondary market transactions, as well as analyst estimates. Analyst estimates were used because they included estimated market values for the individual frequency ranges of mobile companies in the United States. Multipliers were derived from these market prices for the price in U.S. dollars per MHz per member of the population (price per MHz/pop). Based on the bandwidth of observable multipliers, a multiplier of USD 1.95 per MHz/pop was used to derive the fair value of T‑Mobile US’ PCS and AWS licenses. As a result of the remeasurement, a recoverable amount of EUR 69.8 billion was calculated for the PCS and AWS licenses. Taking the carrying amount of EUR 48.6 billion into account, the remaining amount of the impairment loss on the FCC licenses of EUR 2.6 billion was therefore reversed in full in 2024 and recorded under other operating income.

Goodwill

In the reporting year, the carrying amount of goodwill in cash-generating units in the operating segments decreased by EUR 0.8 billion to EUR 20.9 billion. This was the result of the following effects:

United States operating segment. The decrease in goodwill of EUR 0.9 billion primarily relates to exchange rate effects from the translation of U.S. dollars into euros. By contrast, the effects of changes in the composition of the Group – from the acquisitions of UScellular, Vistar Media, and Blis – increased the carrying amount of goodwill by EUR 0.6 billion.

For further information on the UScellular, Vistar Media, and Blis transactions, please refer to the section “Changes in the composition of the Group and other transactions” under “Summary of accounting policies.”

Europe operating segment. Changes in goodwill in the cash-generating units Poland, Hungary, and the Czech Republic mainly resulted from exchange rate effects.

Disclosures on annual impairment tests. As of December 31, 2025, Deutsche Telekom carried out its annual impairment tests on the goodwill and intangible assets with an indefinite useful life (in particular, FCC licenses in the United States) assigned to the cash-generating units.

The recoverable amounts to be identified for the impairment tests were largely determined on the basis of the fair values less costs of disposal. With the exception of the United States cash-generating unit (Level 1 measurement), these figures were calculated using the net present value method. The main parameters are shown in the following table. The impairment tests on goodwill as of December 31, 2025 did not result in any need for impairment in the cash-generating units. Likewise no need for impairment had been identified in the cash-generating units at the reporting date of the prior year.

The recoverable amounts at the cash-generating units Greece, Croatia, Montenegro, and North Macedonia were determined using the value in use. The market price of an active and liquid market (share price) of T‑Mobile US was used to determine the fair value less costs of disposal in the case of the United States cash-generating unit. The measurements of all other cash-generating units, as for the value in use, are founded on projections for a ten-year projection period that are based on financial plans that have been approved by management and are also used for internal purposes. The chosen planning horizon reflects the assumptions for short- to medium-term market developments and is selected to achieve a steady state in the business outlook that is necessary for calculating the perpetual annuity. This steady state can only be established based on this planning horizon, in particular due to the sometimes long investment cycles in the telecommunications industry and the investments planned and expected in the long run to acquire and extend the rights of spectrum use. Cash flows beyond the internal mid-term planning are extrapolated using appropriate growth rates defined separately for each cash-generating unit. These growth rates are based on real growth and inflation expected in the long term for the countries in which the respective unit operates. To achieve the sustainable growth rates set for the period of the perpetual annuity, additional sustainable investments derived specifically for each cash-generating unit are taken into account. The key assumptions on which management has based its determination of the recoverable amount include the following assumptions that were primarily derived from internal sources and are based on past experience and extended to include internal expectations, and that are underscored by external market data and estimates: development of revenue, customer acquisition and retention costs, churn rates, capital expenditure, market share, and growth rates. Discount rates are determined on the basis of external data derived from the market, taking account of the market and country risks associated with the cash-generating unit. Any significant future changes in the aforementioned assumptions would have an impact on the fair values of the cash-generating units. Changes in the assumptions may have a negative impact, as a result of future macroeconomic trends, continued intense competition, further possible legislation changes (e.g., as part of national austerity programs), and regulatory intervention.

For further information on the determination of the recoverable amounts of the cash-generating units, please refer to the section “Accounting policies” under “Summary of accounting policies.”

The following table provides an overview of the main factors affecting the measurement and the classification of the input parameters (levels) used to determine the recoverable amounts in accordance with IFRS 13.

The sensitivity analyses for the need for impairment resulting from a change in the main parameters affecting measurement did not result in any need for impairment for any cash-generating unit to which goodwill is allocated. Changes of plus or minus 50 basis points in the discount rate and in the sustainable growth rate, and of 5 percentage points in net cash flows were each analyzed separately.

Impairment losses on non-current assets in the Europe operating segment. In the reporting year, impairment losses on property, plant and equipment, intangible assets, and right-of-use assets totaling EUR 71 million were recognized. Impairment losses totaling EUR 50 million were recognized in the Europe operating segment following ad hoc impairment tests at the Romania cash-generating unit. Overall, EUR 27 million of the impairment losses related to right-of-use assets, EUR 20 million to property, plant and equipment, and EUR 2 million to intangible assets. They arose as follows during the year:

In the first half of 2025, impairment losses of EUR 40 million were recognized in the Europe operating segment following an ad hoc impairment test at the Romania cash-generating unit. The subsidiary in Romania operated in a structurally challenging and highly competitive market. The fair value less costs of disposal was calculated at EUR 17 million, which is EUR 40 million lower than the carrying amount of the cash-generating unit. The fair value was derived on the basis of purchase offers.

As of September 30, 2025, the assets and liabilities of the Romania cash-generating unit were reclassified to assets and disposal groups held for sale and liabilities directly associated with non-current assets and disposal groups held for sale, as per the agreement dated September 19, 2025 concerning their sale. The impairment test conducted in this connection resulted in the recognition of further impairment losses of EUR 10 million. The fair value less costs of disposal was calculated at EUR ‑3 million, which is EUR 10 million lower than the carrying amount of the cash-generating unit.

Deutsche Telekom had commitments for the acquisition of intangible assets in the amount of EUR 5.9 billion (December 31, 2024: EUR 6.0 billion) as of the reporting date. The majority of this related to commitments entered into by T‑Mobile US.

For further information, please refer to Note 42 “Other financial obligations.”

Expenditure on research and development recognized as an expense by Deutsche Telekom amounted to EUR 20.0 million in the reporting year (2024: EUR 21.3 million).