Deutsche Telekom CEO Tim Höttges says SpaceX would need to invest at least €200 billion to compete with established mobile operators, underscoring the cost and infrastructure challenges facing satellite-based mobile services. Speaking on the company’s third-quarter earnings call, he said satellite connectivity is creating a new business category, but matching the coverage consumers expect from mobile networks remains a substantial undertaking.
Höttges puts the entry cost at €200bn
Discussing SpaceX and its Starlink mobile plans, Höttges said: “If he has the money, go for it.” He estimated that competing in the mobile market would require a minimum investment of €200 billion.
Deutsche Telekom owns a 55% controlling stake in US carrier T-Mobile US, giving Höttges’ comments added significance for the traditional telecom sector. SpaceX plans to use Starlink to expand into mobile services, while established operators argue that meeting coverage and service expectations in mature markets requires far more than launching satellites.
Ground networks retain an advantage in dense areas
Höttges questioned the need to send signals to satellites in orbit roughly 400 kilometres above Earth when an antenna may be just 10 or 100 metres from a user. His comparison highlights the advantage of terrestrial networks in areas with dense populations. Carriers have spent years building extensive base-station infrastructure and securing hundreds of megahertz of spectrum to support broad coverage and high volumes of mobile traffic.
His assessment is similar to views expressed by US carrier executives: satellite networks are not yet positioned to provide, on their own, the coverage expected in mature mobile markets. Established operators’ position rests not only on network equipment, but also on the scale of their base stations, spectrum holdings and operating systems built through long-term investment. SpaceX would need to expand its service enough to compete with those networks while taking on the associated capital costs.
Deutsche Telekom will not dismiss SpaceX
Despite the high costs and infrastructure hurdles, Höttges said SpaceX should be taken seriously. He described the company as creating a new category and said Elon Musk’s businesses in chips, data centres, artificial intelligence platforms and satellites could, over the next five to 10 years, form a vertically integrated communications company.
Höttges compared the possibility with Tesla’s impact on the automotive industry, saying telecom companies should not repeat the car industry’s past tendency to overlook change. For Deutsche Telekom and its US-controlled company T-Mobile US, the question is not only whether satellite services can complement terrestrial networks, but whether SpaceX can combine its technologies and assets into a mobile service that operates at scale. Höttges’ remarks point to both the barriers built by existing networks and the industry’s close attention to a potential new model of competition.