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Deutsche Telekom CEO Says SpaceX Needs 200 Billion Euros to Rival Terrestrial Carriers

SpaceX faces massive financial and infrastructure obstacles to compete with mobile carriers, requiring at least €200 billion in investment, according to Deutsche Telekom CEO Tim Höttges. Despite the hurdle, Höttges warned legacy telecoms against underestimating Elon Musk's enterprise over a five- to ten-year horizon, drawing parallels to Tesla's disruption of the automotive industry. The remarks follow Höttges' observation that markets have already compressed valuation multiples for incumbents like AT&T, Verizon, and T-Mobile US over the past six months, pricing in increased competition and reduced profitability ahead of SpaceX's anticipated mobile market entry.

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SpaceX

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Mixed

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Other

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1 min