The Financial Times reports today on Deutsche Telekom’s first quarter results. The expected fall in the domestic fixed-line business was compensated for by a 12 per cent rise in revenues on the part of T-Mobile. A big part of this increase is due to the fact that they added a record 1.2m net new mobile subscribers in the US. Also helpful was their strong UK showing where they are now challenging to take the number one slot.

The one blemish on the report card: Germany. The fixed line T-Com section saw a 6% decline in sales, whilst T-mobile was reported as showing a disappointing drop in margins, “ascribed to one-off effects, increased marketing spend and the feeble German economy”.

“James Golob, an analyst at Goldman Sachs, said: “The mobile business accounts for nearly all of our medium-term earnings and sales growth forecasts – and, of that, half is related to the performance in the US.” The German mobile figures “raised concerns that the sudden drop in margins could represent a trend that could last for as long as the weakness in the German economy continues.””

Unfortunately, if I am right about the German economy, this means there could be a long, long wait ahead of us.