- T-Mobile’s parent company, Deutsche Telekom, is casting doubt on SpaceX’s ambitions to become the fourth major US wireless carrier.
- CEO Tim Höttges argues that satellite connectivity can’t replace traditional cellular networks in densely populated areas and that SpaceX faces major infrastructure challenges.
- Höttges also warned carriers against entering into MVNO agreements with SpaceX, arguing that such partnerships could hurt their own businesses.
SpaceX’s major announcement from last week has had the big three US carriers on the defensive. For reference, the Elon Musk-founded company is aiming to become a nationwide competitor to AT&T, T-Mobile, and Verizon, and it has done so by striking an agreement to acquire spectrum in the 800MHz band. The development should eventually help the company offer reliable indoor coverage. However, there’s a lot that needs to be done before that ambition can come to fruition, and T-Mobile’s parent company, Deutsche Telekom, is making sure SpaceX knows that.
In an investor relations webcast on Monday, the parent company and its CEO, Tim Höttges, addressed concerns regarding the disruption of the telecom market by the presence of satellite providers (via PCMag).