T-Mobile Parent Says Starlink Mobile Faces $200 Billion Challenge

SpaceX would face enormous costs if it tries to build a US mobile business capable of challenging T-Mobile, AT&T and Verizon, Deutsche Telekom chief executive Tim Höttges said on November 5. Deutsche Telekom holds a controlling 55% stake in T-Mobile US.

Höttges estimated that the project would require at least $200 billion. SpaceX has acquired 76 megahertz of spectrum, he said, compared with Deutsche Telekom’s 400 megahertz. Expanding its spectrum position could cost hundreds of billions, and building or renting access to towers could add another $20 billion to $30 billion, he said.

SpaceX would also need antennas and a network that can compete with established carriers’ infrastructure. The company has outlined plans for Starlink Mobile using both direct-to-cell satellites and a ground-based network. Qualcomm has said SpaceX will use its cellular infrastructure technology for the buildout.

Höttges argued that satellite service alone cannot match the coverage people expect in developed areas when mobile towers are nearby. Established networks rely on extensive tower systems and spectrum accumulated over many years.

But he said SpaceX could still reshape communications by combining its satellites with chipsets, data centers and artificial intelligence, potentially creating a different kind of service between 2031 and 2036. He said the telecom industry should pay attention to lessons from automakers that underestimated Tesla. SpaceX’s plans therefore remain a serious competitive prospect, even in Höttges’ view of the financial and infrastructure hurdles.