Elon Musk’s SpaceX Needs at Least €200 Billion to Challenge US Telecom Giants, Says Deutsche Telekom CEO Tim Höttges: ‘Welcome to the Party’

Elon Musk’s Space Exploration Technologies Corp. (NASDAQ:SPCX) would need at least €200 billion (about $220 billion) to challenge America’s established wireless carriers, Deutsche Telekom AG (OTC:DTEGY) CEO Tim Höttges warned on Thursday, welcoming the potential rival with a pointed message.

SpaceX Faces Massive Spectrum And Infrastructure Costs

Speaking during Deutsche Telekom’s Nov. 5 earnings call, Höttges said SpaceX had acquired 76 megahertz of spectrum against roughly 400 megahertz held by T-Mobile US Inc. (NASDAQ:TMUS), the German company’s U.S. subsidiary. Expanding that position would require "triple digit billions," he estimated. "If he has the money, go for it," he added, before welcoming Musk’s ambitions with a pointed "Welcome to the party."

Höttges said matching an established carrier’s terrestrial infrastructure would demand substantial investment beyond spectrum. Pointing to T-Mobile’s 85,000 towers, he estimated renting tower capacity alone could cost another $20 billion to $30 billion, before SpaceX installed antennas and other equipment.

"My assessment is that SpaceX … needs at least minimum €200 billion, but even beyond that," Höttges said, arguing that established operators had refined their networks over two decades. The figure represents his estimate, not a disclosed SpaceX spending commitment.

Deutsche Telekom Expects Musk To Enter Market

Reuters reported on Thursday that Höttges expects SpaceX to enter the market despite those obstacles. "We have to assume that it is coming," he said, warning that investors already anticipate tougher competition and pressure on wireless operators’ long-term profitability.

Höttges also argued satellites cannot fully replace terrestrial networks, particularly in cities and inside buildings. T-Mobile was Starlink’s first direct-to-cell partner, but its parent company wants competing satellite providers rather than dependence on one operator.

SpaceX Accelerates Plans For Nationwide Wireless Network

The expansion is already taking shape. Qualcomm announced this week that SpaceX selected its Dragonwing platforms for Starlink Mobile’s terrestrial 5G base stations, with nationwide rollout planned to begin in 2027 and tens of thousands of sites envisaged.

Earlier reports highlight SpaceX’s pursuit of at least 80,000 American cell sites, including discussions involving Crown Castle, while telecom specialist William Webb estimated another $120 billion to $130 billion could be needed to rival incumbents.

Deutsche Telekom, meanwhile, raised its 2026 outlook on Nov. 5 after strong quarterly results. The company also announced plans for a €2 billion ($2.23 billion) buyback in 2027.

Price Action: SPCX shares were trading 5.16% higher at $130 in pre-market trading on Friday, according to Benzinga Pro data.

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