Deutsche Telekom referenced global economies of scale and the systematic use of AI as playing key roles in its future growth plan, with the company expecting to book improved earnings on both sides of the Atlantic in the coming years.

Presenting an updated strategy at its capital markets day, the operator predicted it would achieve average annual revenue growth of around 4 per cent in the years to the end of 2027, with adjusted earnings per share rising an average of 11 per cent per year over the period.

The company aims to “generate a total of more than €15 billion, on top of the investments in the business and the dividend payments”. It indicated the cash would give it options for further share buybacks or to further increase its stake in T-Mobile US.

To achieve the numbers, Deutsche Telekom aims to become “even more data-driven and automated” as it steps up use of AI.

An example given is a move to simplify customer support processes, with an ambition queries will be “better channelled and accelerated through automated identification and documentation, and AI-based information requests”.

It aims to cut customer call volume by expanding app-based self service offers and AI-compatible messenger services.

To achieve economies of scale across its various operations, which is also part of the tweaked strategy, it aims to use “globally available services and API-based IT platforms in the cloud”.

CEO Timotheus Hoettges said Deutsche Telekom is “initiating the next stage”, noting in recent years it had “achieved or even exceeded nearly all of our targets”.

“We will build on this position in the future, for example, by further intensifying the use of AI,” he added.