Deutsche Telekom sees Starlink as an existential threat

The share prices of Telekom and its subsidiary T-Mobile US have come under pressure in recent weeks after SpaceX announced its entry into the US mobile market. SpaceX plans to build a mobile network with Starlink Mobile, combining satellite connections with terrestrial infrastructure, pending approval from US authorities. This is intended to improve coverage, particularly in previously underserved regions. Previously, Starlink has relied on cooperation with established providers such as T-Mobile, and Deutsche Telekom is also working with Starlink on a satellite-based mobile service scheduled to launch in 2028.

Höttges also stated that there is speculation in the industry that Musk could acquire the telecommunications provider Verizon. He emphasized that Deutsche Telekom, as a publicly traded company in the United States, could also be a potential takeover target: “We are also publicly traded in America. So we too could be a potential candidate.”

According to Höttges, Musk is pursuing a more comprehensive goal with Starlink than just the traditional mobile business. He sees it as building a global communications platform integrating satellites, space travel, data centers, and artificial intelligence. “If we were to do all of that, people would think I was crazy,” Höttges said. In contrast, Musk’s plan is seen as an ambitious vision currently supported by various funding sources.

The Telekom CEO also expressed concerns about the impact on Europe. The question is whether Europe will produce its own digital market leaders or will continue to depend on US platforms. He criticized that Europe has missed the opportunity for consolidation and could now lose importance in the competition with companies like those of Elon Musk.