Deutsche Telekom questions feasibility of SpaceX becoming major mobile carrier

Deutsche Telekom CEO Tim Höttges has cast doubt on SpaceX’s ambitions to transform its Starlink satellite service into a major mobile carrier in the United States. During a recent earnings call, Höttges stated that while his company monitors Musk's ventures closely, the practical barriers to entry remain significant.

The primary hurdle, according to Höttges, is the acquisition of spectrum. He noted that Deutsche Telekom currently holds 400 megahertz of spectrum compared to the 76 megahertz currently held by SpaceX. Höttges estimated that achieving a competitive spectrum position, coupled with the massive physical infrastructure rollout required for a national network, would necessitate a capital expenditure of at least $200 billion.

Beyond spectrum and capital, the logistical challenge of building a nationwide tower network presents a major obstacle. Höttges highlighted the scale of Deutsche Telekom’s own infrastructure, which includes 85,000 towers, as an example of the baseline required to operate as a major mobile carrier.

While Höttges welcomed the competition, he suggested that the high cost of entry makes Starlink’s path to becoming a primary wireless provider difficult. SpaceX has not provided a detailed timeline or specific budget for its mobile network expansion.