Deutsche Telekom CEO says SpaceX has a massive mountain to climb to compete in mobile: 'Welcome to the party!'
Deutsche Telekom CEO Tim Höttges expressed skepticism regarding SpaceX's Starlink mobile ambitions, citing the massive capital expenditure required to compete with terrestrial networks. While he remains unconvinced of the current model, he acknowledges that Musk's vertical integration could create a disruptive new category of communication.
Why it matters
This highlights the tension between traditional telecommunications infrastructure and emerging satellite-based mobile connectivity models.
"Welcome to the party," Deutsche Telekom CEO Tim Höttges said of SpaceX's Starlink mobile play. Yen Duong/Bloomberg via Getty Images Deutsche Telekom CEO Tim Höttges is watching SpaceX's Starlink mobile ambitions closely. A competitive network would need a land-based presence, and that will cost a lot of money, he said. Höttges' larger concern is SpaceX creating a new kind of communication business, as Musk did in autos. The CEO of one of Europe's largest telecom networks is not stressed about Elon Musk's Starlink mobile ambitions — yet. "If he has the money, go for it," Deutsche Telekom CEO Tim Höttges said during the company's third-quarter earnings call Thursday. "My assessment is that SpaceX, at least, if they want to play in that industry, needs at least minimum €200 billion." Deutsche Telekom owns a 55% controlling share of T-Mobile US .
Also covering this story
One other newsroom covered this event. We read that version too.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in