TECHNOLOGY · ANALYSIS
Starlink Mobile: Deutsche Telekom highlights the cost of a terrestrial network
Deutsche Telekom's chief executive estimates that SpaceX would need at least $200 billion to become a major US mobile operator. This assessment comes from a potential competitor and concerns spectrum and terrestrial infrastructure in particular.
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The Starlink Mobile project has drawn a cautious response from Deutsche Telekom, T-Mobile's parent company. During an earnings presentation on Thursday, its chief executive Tim Höttges estimated that SpaceX would need at least $200 billion to become a major player in the US mobile market, The Verge reported on November 5.
This amount is a rival executive's assessment, rather than a budget announced by SpaceX. His reasoning highlights the cost of spectrum, followed by the cost of deploying a network. In particular, he cites the spending required to lease sites and install antennas on them. The estimate does not establish that SpaceX will actually spend this amount.
According to The Verge, SpaceX presented a project last month combining satellites capable of communicating directly with phones and a terrestrial network, with the aim of competing with T-Mobile, AT&T and Verizon. The outlet also says Qualcomm announced this week that SpaceX would use its cellular infrastructure technology to support the deployment of Starlink Mobile. This establishes a technology announcement, without demonstrating coverage or service quality.
Höttges' analysis highlights a constraint on the project: satellite resources do not necessarily eliminate the need for terrestrial investment in the proposed architecture. He nevertheless takes the possibility of a new form of service seriously. The available documents establish neither a definitive cost nor commercial or technical performance.