Deutsche Telekom (DTEGn.DE): SpaceX buying more US wireless spectrum, satellite risk increasing

Morgan Stanley update on Deutsche Telekom. SpaceX/Starlink agreed to acquire up to 14MHz of valuable low-band 800MHz spectrum, prompting investor concern over satellite disruption of the wireless industry; TMUS shares fell ~7% in after-hours trading. Satellite is closing the spectrum gap with incumbent US telcos. Two US spectrum auctions are forthcoming (C band and 2.7GHz), and investors fear SpaceX and/or Globalstar could buy more bandwidth. Telcos argue satellite faces physical limitations (indoor coverage; "solving the last 2%, not the 98%"), but SpaceX's low-band purchase suggests satellite may be seeking to address these issues. The theme layers on concerns over Agentic AI (agents may enable subs to spin down, lower ARPU, increase churn). TMUS is 62% of DT's SOTP; DT is expected to own 57% of TMUS equity by Dec 2026, and the TMUS share price fall alone equates to -4.8% of DT's equity value. Rating Overweight, price target €38.00.