Telefónica has sold them, Orange is spinning them off, Vodafone is preparing an initial public offering (IPO). And Deutsche Telekom? The largest of Europe s telecom superpowers seems in no hurry to do anything in particular with its towers, the masts that support mobile network equipment. The fact we haven t made any decision doesn t mean the value has been lost, said Christian Illek, Deutsche Telekom s chief financial officer, on a call with reporters last week.
Possibly not. But Deutsche Telekom s options could be limited if it dallies much longer. Cellnex, a towers specialist, is building a European empire through takeover activity, energized by investor enthusiasm for infrastructure assets. Its latest deal in Poland, announced with Polkomtel Infrastruktura last week, would give it about 128,000 sites in a region that was home to fewer than half a million as recently as 2019. With 82,000, Vodafone s Vantage Towers is emerging as another powerbroker. The rise of these titans a
Try as he might, Timotheus Höttges simply cannot enthuse shareholders about the performance of Deutsche Telekom, the company he manages. 2020 was a record year for Deutsche Telekom, he proclaimed on a call with reporters today, reeling off a list of impressive achievements. Sales and profits have soared, customer numbers have grown and dividends are still paid. Yet the German incumbent s share price remains about 5% lower than it was five years ago, when Höttges was far less ebullient.
Net debt remains a worry. At 120.2 billion (US$145.6 billion), it exceeds Deutsche Telekom s market capitalization by around 49 billion ($59.4 billion) and is outside its own safety zone. That constrains the company s ability to invest in higher-speed networks, acknowledged Christian Illek, its chief financial officer, although he expects leverage to fall in the next two to three years.