Deutsche Telekom Stock: Network Upgrade Amid Market Fluctuations

Deutsche Telekom's stock experienced a slight dip of 1.0% to €27.61 on Tuesday's XETRA trading, positioning it just 2.61% below its 52-week high. Despite this minor setback, the telecommunications giant is poised for potential growth, with analysts projecting an average target price of €32.93. The company's financial health appears robust, having reported a 35.5% increase in earnings per share to €0.42 in Q2 2024, alongside a 4.31% revenue boost to €28.39 billion.

Strategic Network Overhaul

In a bold move to enhance mobile internet services, Deutsche Telekom has announced plans to phase out its 2G network by June 30, 2028. This strategic decision aims to reallocate valuable frequency bands to more advanced 4G and 5G networks, potentially strengthening the company's market position and long-term growth prospects. While this transition may necessitate equipment upgrades for some customers and IoT providers, it signals Deutsche Telekom's commitment to technological advancement and improved connectivity, particularly in rural areas.