Deutsche Telekom says investors already pricing in SpaceX wireless threat
Hoettges said investors are already pricing in lower profitability as SpaceX prepares a costly mobile push that could reshape wireless competition.
- Deutsche Telekom CEO Timotheus Hoettges addressed the potential threat of SpaceX's Starlink Mobile during an earnings call on Thursday, noting that investors are pricing in lower long-term profitability for traditional wireless operators.
- Doubting the feasibility of Starlink's cellular ambitions, Hoettges argued that SpaceX must build a large-scale, ground-based network to compete effectively, emphasizing that satellite services alone cannot replace terrestrial networks.
- Building this infrastructure requires significant investment; Hoettges estimated SpaceX needs at least $200 billion to succeed and a minimum of four to six years to construct the necessary ground network.
- "We have to assume that it is coming," Hoettges told reporters regarding SpaceX's market entry; Deutsche Telekom is pursuing satellite alternatives and recently joined three European operators to explore collaborative arrangements.
- Likening the potential disruption to Tesla's impact on the automotive industry, Hoettges treats SpaceX as a serious challenger that could redefine communication services through vertical integration and new capabilities.
12 Articles
12 Articles
T-Mobile owner on Elon Musk launching a wireless carrier: ‘Welcome to the party’
The head of T-Mobile's parent company is casting doubt on SpaceX's plans to make Starlink Mobile a "major" carrier in the US. During an earnings call on Thursday, Deutsche Telekom CEO Tim Höttges says he takes the Elon Musk-owned company "super serious," but that it will cost at least $200 billion to pull off: He […]
Deutsche Telekom says investors already pricing in SpaceX wireless threat
T-Mobile's Parent 'Irritated' That Starlink Mobile Is Viewed As Threat So Soon
Like Verizon, Deutsche Telekom predicts SpaceX will need to spend at least $200 billion to become a carrier, but its CEO acknowledges that Starlink Mobile could stand out over time.
Deutsche Telekom is spending a more than solid summer. Revenue and earnings are increasing. Shareholders are expected to benefit from this. However, in the USA, new competition is emerging with Musk's Starlink plans, to which the Dax Group has to respond.
Deutsche Telekom's business is growing, but competition is also growing. US company Elon Musk's plans to participate globally in the mobile communications business are being taken seriously in Bonn. How Telekom CEO Tim Höttges assesses the situation.
For the first time, the Telekom CEO speaks openly of Elon Musk as a future competitor in the USA. There, the Dax Group is doing its biggest business. Höttges sees two trumps against Musk.
Coverage Details
Bias Distribution
- 43% of the sources are Center
Factuality
To view factuality data please Upgrade to Premium
