It’s hardly a daring assertion to say that sending former Telekom Germany boss Srini Gopalan to the US isn’t just a parking spot – it’s a clear move to launch him to the helm of the group’s most crucial subsidiary. For a manager so highly regarded by CEO Tim Höttges, waiting in a backseat role for years – especially without a real shot at the top job – would hardly have been enough to keep him on board. This is especially true since his chances of succeeding Höttges approach zero if the long-serving CEO actually fulfills his contract through the end of 2028.

Meanwhile, the challenges facing Telekom’s crown jewel have grown significantly. The easy gains from the Sprint merger are mostly behind them. Outside consumer mobile, T-Mobile US now faces vulnerabilities competitors are eager to exploit. That particularly concerns high-bandwidth fixed-line connections, which AT&T and Verizon have long offered – even though fibre-optic expansion in the US is still in its infancy overall.

For Deutsche Telekom – which holds a slim 51.5% majority stake in the 270 billion dollars market cap US wireless giant – strengthening its managerial grip on its prized asset is paramount. The interests of the Bonn-based parent company and those of T-Mobile US can quickly diverge if the competitive environment in the US shifts, and the subsidiary wants to accelerate new business expansion with significantly more capital, or even consider a major acquisition.

In that case, there is a risk that the capital inflows from the US – which already arrived quite slowly from the perspective of Deutsche Telekom shareholders – could dry up again, not to mention the difficulties a capital increase at T-Mobile US would trigger. A loyal steward is therefore of great importance to Telekom. Höttges is apparently relying on Gopalan, whom he has supported for years, to be that person.