Chief Financial Officer Thomas Dannenfeldt told investors the target excluded T-Mobile US Inc, in which Deutsche Telekom holds a 66.3 percent stake.
Dannenfeldt said about 700 million euros would come from IT savings, while sales & marketing were expected to save about 400 billion euros.
Another 400 million euros in savings are expected at the company's network business.
Deutsche Telekom is in the process of creating a pan-European infrastructure based on internet protocol.
Dannenfeldt reiterated that Deutsche Telekom did not plan to make major acquisitions into new geographical or product areas.