Deutsche Telekom to Lower Spending

Deutsche Telekom, failing to reduce its $55-billion debt as fast as planned, will lower spending and slash dividend payments as it seeks to limit possible cuts to its credit ratings.

The phone company will trim investment in new networks by about 10% this year, Chief Financial Officer Karl-Gerhard Eick said. The company will miss a target to cut debt to $44 billion this year.

Deutsche Telekom, like rival France Telecom, amassed debt with acquisitions and the purchase of wireless phone permits.

Deutsche shares fell 14 cents to $14.75 on the Big Board.