Deutsche Telekom CEO Tim Höttges expressed skepticism regarding the ambition of SpaceX to establish Starlink Mobile as a major US wireless carrier. During a recent earnings call, Höttges estimated that building such a network would require a minimum investment of $200 billion to achieve a competitive market position.
The executive highlighted the massive capital expenditure needed for spectrum acquisition and infrastructure. He noted that SpaceX currently holds 76 megahertz of spectrum, while T-Mobile possesses 400 megahertz. Höttges estimated that securing a comparable spectrum position would cost hundreds of billions of dollars, while renting and equipping 85,000 towers would require an additional $20 billion to $30 billion.
SpaceX plans to compete with major carriers like T-Mobile, AT&T, and Verizon by combining direct-to-cell satellite technology with a terrestrial network. Reports suggest the company may seek to utilize 80,000 cell towers or acquire Boost Mobile. Additionally, Qualcomm recently announced a partnership to provide cellular infrastructure technology for the Starlink Mobile network.
Despite the financial hurdles, Höttges acknowledged the potential disruption Starlink Mobile could cause by integrating AI, data centers, and social media into communication services. He compared the situation to the automotive industry, where traditional players underestimated the impact of new entrants like Tesla, emphasizing that the telecom sector must take these developments seriously.
