Deutsche Telekom CEO Estimates SpaceX Needs €200 Billion for Mobile Market
Tim Höttges says SpaceX faces massive financial hurdles to compete in mobile communications but warns the telecom industry must take the threat seriously.
Deutsche Telekom CEO Tim Höttges stated that Space Exploration Technologies Corp. faces significant financial and infrastructural hurdles in its attempt to compete in the mobile communications industry. During a third-quarter earnings call on Thursday, Höttges estimated that SpaceX would need at least €200 billion to effectively enter the market.
Höttges argued that satellite-based networks cannot match the coverage and performance of terrestrial networks, which rely on extensive spectrum and nearby antennas. Despite these doubts, he noted that SpaceX is creating a new category and could potentially build a vertically integrated communications company within five to ten years.
Höttges warned that the telecom industry must take this threat seriously to avoid the mistakes made by the automotive industry when it ignored Tesla.
