Deutsche Telekom AG CEO Timotheus Höttges has raised concerns about the commercial viability of SpaceX’s Starlink Mobile service, questioning the need for satellite connectivity where terrestrial networks already provide coverage.
Speaking during a webcast on Monday, Höttges argued that customers have little incentive to switch to a satellite network when they can already access good or best-in-class service from traditional carriers. He noted that Deutsche Telekom, which owns a majority stake in T-Mobile US, possesses 85,000 mobile antennas in the United States.
Höttges stated that SpaceX CEO Elon Musk must first build out infrastructure to match this number before Starlink Mobile can be considered a serious competitor. He suggested that Musk still faces "many, many" hurdles to overcome.
This skepticism comes shortly after SpaceX agreed to acquire up to 14 MHz of nationwide 800 MHz spectrum, a move that reportedly caused shares of T-Mobile, AT&T, and Verizon to fall. Deutsche Telekom shares also dropped approximately 7% following the announcement.
SpaceX has countered that the new spectrum addresses a key weakness in satellite-to-phone technology. The company claims low-band frequencies travel farther and penetrate walls better, and its planned network aims to provide service "indoors, outdoors, in cellular dead zones, and everywhere in between." SpaceX asserts that its next-generation satellites will deliver more than 100 times the bandwidth of its current system.
The FCC has also supported the expansion, stating that SpaceX’s direct-to-device service could increase wireless competition and improve coverage in hard-to-reach areas. Musk has described the spectrum acquisition as the "last critical piece" needed for complete U.S. phone coverage.
Despite the competitive tension, Deutsche Telekom plans to launch Starlink satellite-to-mobile service across several European markets in 2028, positioning the technology as a supplement where traditional towers cannot reach. Höttges also warned carriers against offering cheap wholesale access to SpaceX, fearing it could put retail pricing under pressure.
