US — The Verge

T-Mobile owner on Elon Musk launching a wireless carrier: ‘Welcome to the party’

SpaceNovember 6, 20261 min read

The head of T-Mobile's parent company, Deutsche Telekom, says SpaceX would need at least $200 billion to become a major US mobile carrier. He also says the Elon Musk company is a threat worth taking seriously.

What happened

Deutsche Telekom CEO Tim Höttges spoke on an earnings call. He doubted that SpaceX can easily build a phone network. He said the company takes SpaceX "super serious," but that it will cost a lot of money. He also said "welcome to the party" to show that SpaceX is joining a crowded and well-established industry.

Key numbers

SpaceX has bought 76 megahertz of spectrum. Deutsche Telekom has 400 megahertz. Spectrum is the radio space that phones use to connect.
Höttges says buying spectrum costs in the triple-digit billions of dollars.
Deutsche Telekom has 85,000 cell towers. Renting towers would cost another $20 to $30 billion, he says.
His estimate: SpaceX needs at least $200 billion to compete.

Background

SpaceX plans to offer Starlink Mobile, a phone service that would compete with T-Mobile, AT&T, and Verizon. It would use satellites that connect directly to phones, plus a land-based network. One report says SpaceX could use 80,000 US cell towers. Another says Musk talked about buying Boost Mobile. Qualcomm, a chip maker, said its technology will help build the network.

Why it matters

Höttges warns that SpaceX is not just another phone company. It has its own chips, data centers, AI tools, and satellites. He thinks it could also add social media or AI services. He compares this to the car industry, which he says ignored Tesla for too long. His message is that the phone industry should not make the same mistake.

What to watch

Whether SpaceX buys more spectrum, the radio space needed for phone service.
Whether SpaceX rents or builds cell towers across the US.
Whether SpaceX completes a deal to buy Boost Mobile.
How T-Mobile, AT&T, and Verizon respond to Starlink Mobile.

Glossary

Starlink Mobile: A planned phone service from SpaceX that would use satellites and land-based towers.
SpaceX: Elon Musk's space company, which also runs the Starlink internet satellites.
Deutsche Telekom: A German telecom company and the parent company of T-Mobile.
Spectrum: The radio frequencies that phones and other devices use to send data wirelessly.
Qualcomm: A company that makes chips and wireless technology for phones and other devices.

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