T-Mobile US is switching millions of customers on legacy 3G and 4G plans to 5G offerings, with the price increases taking effect in mid-July. The move targets the old Magenta, ONE, and Simple Choice bundles — some of which date back 15 years, long before the carrier’s 5G network was fully built out. Voice lines will cost $6 more per month, watch and tablet lines rise by $3, and 5G home internet customers face a $6 increase, with the average impact sitting around $4 per line. For Deutsche Telekom, which holds a majority stake in its American subsidiary, any lift in average revenue per user should eventually feed into the parent company’s bottom line.
The price hike comes as the mood around Deutsche Telekom’s stock shifts in a different direction. Short sellers have been stampeding for the exits. On the over-the-counter listing in the US (OTCMKTS: DTEGY), the number of shares sold short plunged 67.5% to just 200,804 shares by the end of June, down from 617,318 in mid-June. The short-interest ratio now stands at a wafer-thin 0.1 days, suggesting that bearish bets have largely been abandoned.
The retreat of the shorts is somewhat surprising given the group’s latest earnings. In the second quarter, Deutsche Telekom delivered earnings per share of $0.62, well below the $1.07 analysts had pencilled in. Revenue, however, told a sunnier story: $34.97 billion against a consensus of $33.14 billion. Management is guiding for full-year 2026 EPS of $2.54. The OTC shares closed at $29.83 on 10 July, up $0.95 on the day, and trade on a price-to-earnings multiple of 14.27. The analyst consensus on that listing is a “Hold,” split between one buy and two hold ratings.
Should investors sell immediately? Or is it worth buying Deutsche Telekom?
Back in Frankfurt, the chart tells a more cautious tale. After closing at €26.15 last Friday, the stock rallied to €26.80 on Monday, a gain of 2.49%. That extends the previous week’s 5.14% advance, but the shares remain deep in the red on most longer timeframes. The price is still 21.98% below its 52-week high of €34.35, set on 27 February. The 50-day moving average sits at €27.37 and the 200-day at €28.75, both above current levels. On a year-to-date basis the stock is down 3.84%, and compared with a year ago it has lost 12.48%. The RSI of 53.7 points to a neutral market, while annualised 30-day volatility of 32.54% underscores that swings are still sharp.
On the operational front, Deutsche Telekom is trying to bolster customer loyalty at home with a new sports streaming bundle. The “MegaSport” option, priced at €59 a month until 30 September 2026, combines WOW Live-Sport, DAZN Unlimited and MagentaSport. Subscribers save €19.94 monthly compared with buying the three services separately. After the first 12 months the package jumps to €85 a month, though individual subscriptions would by then cost €105.93. The group also recognised external partners: Mavenir won the Deutsche Telekom Partner Award 2026 for Best Network Innovation, thanks to its MeeC initiative that can cut 5G core network energy consumption by up to 65% during low-traffic periods.
For investors, the big question is whether T-Mobile US’s price increases will stick or drive customers to rivals. T-Mobile has been courting the Trump administration in recent months, a political factor that could shape the regulatory landscape. The stock is currently sandwiched between its 50-day and 200-day averages, a zone that will likely determine whether the short-covering rally has legs or fizzles out.
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