Deutsche Telekom mulls spending cuts

More bad news for telecoms equipment makers...

Deutsche Telekom, one of the world's largest buyers of telecoms equipment, has warned it may have to cut capital spending if it is to meet its tough financial targets. The group may slash E1bn (£620m) of its planned capital expenditure budget of E11.5bn (£7.2bn), to meet targets for debt reduction. Even by telco standards, the group is up to its eyeballs in debt, owing a massive E65.5bn (£41bn) at the end of June.