Deutsche Telekom CEO Tim Hoettges has warned against the German state selling its shares in the operator, saying they risk ending up with a disinterested shareholder. The Greens and FDP party in talks with CDU/CSU to form a government in Germany have suggested the state should sell its remaining Telekom shares.
This could raise the German government around EUR 24 billion. While no decision has been taken yet, Hoettges said the state needed to consider questions such as whether a new shareholder would help ensure the security of the telecom infrastructure and remain a long-term investor in Germany. It also needs to plan what to do with the proceeds from the sale.
Some politicians have suggested using the money to invest in fibre networks. Hoettges said the government also needs to work on the regulatory side to create incentives for fibre investment, something he expects this from the pro-business FDP party.
The CEO declined to comment on the potential merger of T-Mobile US with Sprint, saying only that a strong number-three player on the US market would help competition in the face of the duopoly of two very large players.
