Telecom Giant Unfazed by Starlink’s Ambitions
While Elon Musk’s vision for Starlink’s mobile services is gaining attention, the head of one of Europe’s most significant telecom networks remains composed. Deutsche Telekom CEO Tim Höttges addressed the potential competition from SpaceX’s satellite-based plans during the company’s recent earnings call.
“If he has the money, go for it,” Höttges stated, expressing skepticism about the financial feasibility of such ambitions. “My assessment is that SpaceX, at least, if they want to play in that industry, needs at least minimum €200 billion.”
Deutsche Telekom, holding a 55% stake in T-Mobile US, shares a perspective similar to other major US carriers like AT&T and Verizon. According to these companies, satellite networks fall short in providing the comprehensive mobile coverage expected by consumers in well-established regions.
Höttges posed a rhetorical question highlighting the inefficiency of satellite networks: “If you have an antenna 10 meters or 100 meters away from you, why should you go 400 kilometers up and down?”
Telecom providers concur that the extensive infrastructure of terrestrial networks, consisting of numerous towers and a vast spectrum, remains unparalleled. “Welcome to the party,” Höttges remarked, acknowledging the entrance of satellite technology into the telecom arena.
Despite the formidable challenges Starlink faces, such as significant financial investment and infrastructure development, Höttges remains vigilant. “SpaceX is creating a new category,” he acknowledged, recognizing the potential of Musk’s ventures.
Starlink’s integration of technologies—including chipsets, data centers, AI platforms, and satellites—presents an opportunity to revolutionize communications within the coming decade. Höttges drew a parallel to Tesla’s impact on the automotive industry, cautioning: “That is why I’m saying I take that super serious, because I was witnessing what happened to the car industry. They were ignoring it for too long, and we have to face the situation.”
