Deutsche Telekom is watching SpaceX closely in the US mobile market.
The German group reported solid third-quarter results. Yet investor attention shifted toward Elon Musk’s network ambitions. SpaceX plans a hybrid satellite and ground-based mobile network. That could challenge established US operators over time.
Tim Höttges, CEO of Deutsche Telekom, did not dismiss the threat.
“We are taking this upcoming competition very seriously because we are assuming that it’s coming … and they will enter the market with a different business model,” said Höttges.
The timing matters for Deutsche Telekom. Its US unit, T-Mobile, drives most group revenue and earnings. The US business generated 65.7% of group net revenue in Q3. That gives any US market disruption large strategic importance.
SpaceX gained more attention after Qualcomm confirmed its role in the planned network. Qualcomm will supply 5G components for a nationwide system. Reports also link SpaceX to talks with tower firms. The company may seek access to about 80,000 sites.
In addition, SpaceX has strengthened its spectrum position. Spectrum means the radio frequencies used to carry mobile signals. Without enough spectrum, a mobile network can struggle with capacity and speed.
However, Höttges argued that SpaceX faces major barriers. He said it cannot “walk over water.” He also suggested a comparable national network could take years. It may require more spectrum and around $200 billion in spending.
He compared SpaceX’s 79MHz of spectrum with T-Mobile’s larger holdings. In his view, SpaceX has a “dirt track” versus T-Mobile’s 400MHz “autobahn.” The message was clear. Network depth still matters.
Still, markets are already reacting. Investors appear to expect pressure on US mobile returns. Höttges pointed to recent share price weakness across leading operators. He named Verizon, AT&T, and Telekom in that context.
A new entrant could reshape pricing. It could also push incumbents to improve service bundles. For customers, that may mean sharper offers. For operators, it may mean weaker margins.
Deutsche Telekom also addressed speculation about a possible T-Mobile sale. The company owns about 55% of the US operator. Höttges rejected the idea directly.
“we have no interest whatsoever in selling our business,” he said.
He added that SpaceX still needs terrestrial coverage. Satellites alone cannot solve every mobile coverage challenge. Buildings, cities, and capacity needs require ground networks too.
“The question really is, what’s better for SpaceX? Satellite alone isn’t enough, you always need terrestrial coverage. … Is it better to buy a company for that or build it up from scratch? There are three listed companies, and [Musk] will have to make up his mind what he wants to do,” he said.
Meanwhile, Deutsche Telekom’s financial results remained strong. Net revenue rose 7.5% to €31.1 billion. Service revenue increased 6.1% to €26 billion. Adjusted net profit climbed 12.7% to €3 billion.
The company raised full-year guidance slightly. It also plans a 10% dividend increase. A share buyback of up to €2 billion is planned for 2027.
For now, Deutsche Telekom looks financially strong. Yet SpaceX has changed the conversation. The next US mobile battle may combine towers, satellites, spectrum, and scale.
