T-Mobile owner on Elon Musk launching a wireless carrier: ‘Welcome to the party’
Deutsche Telekom CEO Tim Höttges has expressed skepticism regarding SpaceX's ambitions to turn Starlink into a major mobile carrier. He estimates that building the necessary infrastructure and acquiring spectrum would cost at least $200 billion, challenging the feasibility of Elon Musk's plans.
Why it matters
This highlights the massive capital barriers to entry in the telecommunications industry and the competitive threat posed by satellite-based internet providers.
The head of T-Mobile’s parent company is casting doubt on SpaceX’s plans to make Starlink Mobile a “major” carrier in the US. During an earnings call on Thursday, Deutsche Telekom CEO Tim Höttges says he takes the Elon Musk-owned company “super serious,” but that it will cost at least $200 billion to pull off:
> He [Musk] has now bought 76 megahertz of spectrum. By the way, we have 400. So if you now say he can buy the spectrum prospectively, do your math. These are kind of triple-digit billions which are needed to gain the spectrum position. If he has the money, go for it. Then he has to build a network. I can tell you, we have 85,000 towers. No, he can rent towers, no question. But this is another $20 to $30 billion which are required.
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