Risks and opportunities
This section provides important additional information and explains recent changes in the risks and opportunities compared to those described in the 2024 combined management report (2024 Annual Report). Readers are also referred to the “Disclaimer” at the end of this report.
Corporate risks
Strategic risks
Market environment, Germany. Our Germany operating segment is facing market risks in the Consumers, Business Customers, and Wholesale segments due to an increasingly strained market environment (particularly with competition) and uncertain economic trends amid geopolitical challenges (e.g., trade tariffs). This trend could continue in the medium term, in which case we would have to raise the risk significance of the risk category “Market environment, Germany” from low to medium.
Operational risks
Procurement and suppliers. Deutsche Telekom’s supply chains could be negatively impacted by a number of factors, such as geopolitical tensions, cyberattacks, and supply chain restructuring. At T‑Mobile US, in certain areas such as terminal equipment, there are few suppliers who can provide adequate support, which may lead to unfavorable contract terms, decreased flexibility to switch to alternative third parties, and supply shortages. The new U.S. administration has imposed import tariffs on all countries set at varying rates. Suppliers could pass on the increased costs to T‑Mobile US. We are therefore raising the risk significance of the risk category “Procurement and suppliers” from medium to high.
Litigation and anti-trust proceedings
Claims relating to charges for the shared use of cable ducts. In the claims filed by Vodafone Deutschland GmbH and Vodafone West GmbH against Telekom Deutschland GmbH alleging excessive charges for the use of cable ducts, which were referred by the Federal Court of Justice back to the responsible Higher Regional Courts, the plaintiff Vodafone Deutschland has since updated its demands for relief. Vodafone Deutschland now puts its claim at around EUR 980 million plus interest for the period from January 2012 to December 2024. It is currently not possible to estimate the financial impact with sufficient certainty.
Proceedings against T‑Mobile US in consequence of the cyberattack on T‑Mobile US in August 2021. The derivative action brought against the members of the Board of Directors of T‑Mobile US and against T‑Mobile US as nominal defendant in September 2022 was further dismissed in its entirety in appeal proceedings in the first quarter of 2025.
Class action relating to shareholder return programs of T‑Mobile US. On February 25, 2025, a shareholder class action and derivative action was filed in the Delaware Court of Chancery against Deutsche Telekom AG, T Mobile US, and all of T‑Mobile USʼ directors, asserting breach of fiduciary duties relating to the 2022 share buy-back program and the 2023–2024 shareholder return program of T‑Mobile US. It is currently not possible to estimate the resulting claim and financial risk of these proceedings with sufficient certainty.
Assessment of the aggregate risk position
The aggregate risk position has deteriorated compared with the risks and opportunities as described in the 2024 combined management report (2024 Annual Report) due to the increasingly tense market environment in Germany and growing geopolitical uncertainty, particularly amid the introduction of trade tariffs. Our challenges continue to include in particular the regulatory factors, economic uncertainties, and intense competition, and the associated pressure on profitability in the telecommunications business, as well as the pressure to change arising from new technologies and strategic transformation. At the time of preparing this report, neither our risk management system nor our management could identify any material risks to the continued existence of Deutsche Telekom AG or a significant Group company as a going concern.