Carrier heavyweight warns that helping SpaceX could come back to bite the big three
SpaceX's spectrum deal isn't enough to worry this carrier heavyweight.
Deutsche Telekom, the parent company of T-Mobile, has expressed skepticism about SpaceX's aspirations to become the fourth major wireless carrier in the United States. CEO Tim Höttges warned that the company's satellite connectivity cannot replace traditional cellular networks in densely populated areas, citing major infrastructure challenges.
Höttges also cautioned other carriers against entering into MVNO agreements with SpaceX, arguing that such partnerships could damage their own businesses. The recent announcement by SpaceX has put the big three US carriers, AT&T, T-Mobile, and Verizon, on the defensive. SpaceX aims to become a nationwide competitor by acquiring spectrum in the 800MHz band, with the goal of offering reliable indoor coverage.
However, there are numerous hurdles to overcome before this ambition can be realized. Deutsche Telekom's CEO, Tim Höttges, made these remarks during an investor relations webcast on Monday, addressing concerns about the potential disruption of the telecom market by the presence of satellite providers.
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