Deutsche Telekom CEO says SpaceX has a massive mountain to climb to compete in mobile: 'Welcome to the party!'
The CEO of Deutsche Telekom, which owns most of TMobile US, said SpaceX will need to spend €200 billion if it wants to offer a mobile network.
Deutsche Telekom CEO Tim Höttges is closely monitoring SpaceX's Starlink mobile ambitions. Höttges sees the need for a land-based presence in a competitive network, which would be financially costly. His main concern is SpaceX establishing a new type of communication business, similar to how Musk disrupted the auto industry. If SpaceX has the necessary funds, Höttges believes they should pursue their ambitions.
He acknowledges that satellite-based networks are insufficient for delivering high-quality mobile coverage in well-developed areas. Established carriers, including AT&T and Verizon, agree that terrestrial networks with thousands of towers and extensive spectrum are the only viable competitors to satellite services. Despite acknowledging the massive financial and infrastructural challenges SpaceX faces, Höttges is keeping a close eye on Musk.
He describes SpaceX as creating a new category through their chipsets, data centers, AI platforms, and satellites. Höttges warns that ignoring this development could have serious implications, drawing parallels to the car industry's failure to adapt to Tesla's innovations.
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