Deutsche Telekom AG

Germany · owned by Federal Republic of Germany (via KfW and direct holding) (Germany) · www.telekom.com · 29 vendors

Deutsche Telekom AG is one of the world's leading integrated telecommunications companies, offering fixed-network, mobile, internet, and IPTV services to consumers and businesses. Headquartered in Bonn, Germany, it operates across Europe and the United States through subsidiaries including T-Mobile. It is majority state-owned, with the Federal Republic of Germany holding a significant stake via KfW.

Resilience scores

Disruption prediction

Deutsche Telekom AG has an estimated 27% probability of disruption in the next 6 months.

18 of Deutsche Telekom AG's 29 vendors monitored for disruptions.

Technology vendors

Services catalogue

17 services in catalogue across 7 categories; runs on 29 sub-vendors.

Insights

Last updated 2026-05-04 · revision 13

29 direct vendors, 277 subvendors

Direct vendors by controlling owner country (sample)

Subvendors by controlling owner country (sample)

Migration Readiness: 4/10

Assessed by AI based on technology stack characteristics (cloud-native vs legacy, containerization, microservices), regulatory environment, data residency requirements, financial stability, and vendor lock-in risks. The score ranges from 0-10, where higher scores indicate better readiness for technology migration.

Deutsche Telekom demonstrates medium migration readiness, leaning towards the lower end, primarily due to significant regulatory and data residency complexities. The company faces extremely strict data residency requirements under German telecommunications law (TKG), GDPR, and upcoming NIS2 directives, mandating data processing within the EU/EEA or Germany for critical services and personal data. These requirements pose substantial architectural and legal challenges for any cloud migration, especially to non-EU providers. The regulatory environment, with GDPR compliance (high risk) and 'Assessment Required' status for NIS2 (high risk), SOC2 (medium risk), and ISO 27001 (medium risk), necessitates meticulous planning and significant investment to ensure compliance in a new environment. A major impediment to assessing technical readiness is the complete lack of information on the internal tech stack (e.g., cloud-native vs. legacy, containerization, microservices). Without this, it's impossible to gauge the technical effort required for migration. Furthermore, the 'Unknown' vendor lock-in risk is a significant concern; while vendor geographic diversity (7 countries for 55 services) is present, the absence of data on the number of distinct vendors or contract complexities prevents a clear assessment of potential lock-in. The provided vendor data is contradictory, stating 'Total Vendors: 0' while simultaneously listing vendor HQ countries and geographic diversity; for this assessment, we interpret 'Total Vendors: 0' as an absence of a specific count. Finally, the lack of data on financial stability (revenue concentration, growth history) makes it impossible to assess the company's capacity to fund a large-scale migration. These combined factors indicate that any migration would be complex, costly, and require extensive strategic planning.

Compliance

6 in-scope frameworks identified; showing 3.

GDPR (source) — Compliant

Deutsche Telekom is headquartered in Germany (EU) and processes extensive personal data as a telecommunications provider, making GDPR fully applicable. The company demonstrates strong data privacy governance with dedicated data protection teams and advisory boards. Risk level is Medium due to the high-volume nature of telecommunications data processing and potential for significant fines (up to 4% of global turnover), but the company shows evidence of comprehensive compliance programs.

Evidence: https://www.telekom.com/en/company/data-privacy-and-security, https://www.telekom.com/en/company/data-privacy-and-security/governance-data-privacy

FCC Regulations — Compliant

Through T-Mobile US, Deutsche Telekom is subject to extensive FCC regulations governing telecommunications operations in the United States. Risk level is High due to potential for significant fines, license restrictions, and the critical importance of FCC compliance for US market operations. T-Mobile US is the second-largest mobile provider in the US, making regulatory compliance essential.

Evidence: https://www.telekom.com/en/company/worldwide/profile/deutsche-telekom-in-north-america-355832

NIS2 (source) — Assessment Required

Deutsche Telekom operates critical digital infrastructure and telecommunications services in the EU, which are explicitly covered under NIS2 as Essential Entities. As a major telecommunications provider exceeding size thresholds, NIS2 compliance is mandatory. Risk level is High due to potential severe penalties for non-compliance (up to €10M or 2% of global turnover) and the critical nature of telecommunications infrastructure for national security.

Evidence: https://www.telekom.com/en/company/data-privacy-and-security/governance-security

Financials

Three-year financials

Financial Resilience Score: 7/10

Deutsche Telekom AG demonstrates strong financial resilience underpinned by its scale (>€110bn revenue), geographic diversification across the US, Germany and broader Europe, and a consistently expanding adjusted EBITDA AL profile that surpassed €42bn in 2023. The group generates substantial adjusted free cash flow (>€10bn annually), supporting a progressive dividend, deleveraging, and continued capex into 5G and FTTH. Its ~50%+ economic stake in T-Mobile US provides exposure to the strongest US wireless growth story and contributes the bulk of group EBITDA. Investment-grade credit ratings (BBB / Baa2) with stable outlooks confirm capital market access on favorable terms. Resilience is tempered, however, by a heavy debt load (well over €100bn including lease liabilities), much of it inherited from the Sprint/T-Mobile US transaction, which exposes the group to refinancing risk in a higher-rate environment. Reported revenue declined 2.1% in 2023 due to USD/EUR translation, illustrating significant FX sensitivity. Capex intensity remains high due to fiber rollout in Germany and ongoing US network investment, while regulatory risk (EU/German wholesale pricing, US FCC) and intensifying altnet competition in Germany pressure margins. The German government's ~30% stake provides strategic stability but can constrain corporate flexibility. On balance, the group is highly resilient but not without leverage and concentration risks.

Key strengths: Scale with >€110bn revenue and global diversification, ~50%+ economic ownership of T-Mobile US driving growth, Adjusted EBITDA AL expansion to €42bn in 2023, Adjusted free cash flow >€10bn supporting dividends and deleveraging, Investment-grade credit ratings (BBB / Baa2, stable), Network leadership in Germany (largest fixed/mobile network), German government anchor shareholder (~30%)

Risk factors: High leverage with net debt >€100bn including lease liabilities, FX translation risk from large USD exposure via T-Mobile US, Regulatory exposure in Germany, EU and US (FCC), High capex intensity for 5G and FTTH rollout, Intensifying fiber competition in Germany from altnets, Refinancing cost pressure in higher interest rate environment

Revenue by geography

Revenue by product/service

Workforce by country

Signed-in users can see whether their own company is exposed to this vendor's disruption, plus the full sub-vendor list and country breakdowns, every in-scope compliance framework plus gaps and next steps, and alerts when any of it changes.

View the full interactive report