From The Verge · Emma Roth · · 1m 20s
T-Mobile CEO: Starlink Mobile will need $200 billion
Deutsche Telekom's Tim Höttges says Elon Musk's wireless ambitions will be far costlier than SpaceX may expect, but welcomes the competition.
In brief
Deutsche Telekom's Tim Höttges says Elon Musk's wireless ambitions will be far costlier than SpaceX may expect, but welcomes the competition. Deutsche Telekom CEO Tim Höttges says SpaceX needs at least $200 billion to build Starlink Mobile into a major US wireless carrier, but acknowledges Musk's potential to reshape…
Starlink Mobile's $200 billion price tag
Deutsche Telekom CEO Tim Höttges says SpaceX needs at least $200 billion to build Starlink Mobile into a major US wireless carrier, speaking during an earnings call on Thursday.
The spectrum problem
Musk has bought 76 megahertz of spectrum. Deutsche Telekom has 400. Höttges says acquiring enough spectrum to compete requires triple-digit billions of dollars.
“He has now bought 76 megahertz of spectrum. By the way, we have 400.”
Building the network infrastructure
Beyond spectrum, SpaceX must build or rent towers and install antennas. Höttges estimates this infrastructure alone costs $20 to $30 billion.
“Then he has to build a network. I can tell you, we have 85,000 towers.”
SpaceX's broader strategy
Musk plans to combine direct-to-cell satellites with a terrestrial network. Reports suggest SpaceX could tap 80,000 cell towers and acquire Boost Mobile.
A new kind of competitor
Höttges warns that Musk's combination of satellites, chipsets, data centers and AI could create a fundamentally new type of communication service, not just another wireless carrier.
“He is creating a new way of communication services. That is why I'm saying I take that super serious.”
Welcome to the party
Despite the challenges, Höttges says he takes SpaceX seriously and welcomes the competition, comparing it to how the car industry underestimated Tesla.
“But it's not a free lunch. And you see that with Tesla as well in the car industry.”
The one thing
Deutsche Telekom CEO Tim Höttges says SpaceX needs at least $200 billion to build Starlink Mobile into a major US wireless carrier, but acknowledges Musk's potential to reshape the industry.
