Deutsche Telekom says investors already pricing in SpaceX wireless threat
TMUS•Deutsche Telekom CEO Tim Hoettges said investors expect SpaceX to gain market share and increase pricing pressure, though building a nationwide U.S. network would require substantial investment and time. The company also reported third-quarter earnings above expectations, raised its 2026 outlook and plans a share buyback of up to €2 billion in 2027.
1. Investors expect pressure
Deutsche Telekom CEO Tim Hoettges said investors are already pricing in lower long-term profitability for established wireless operators as they anticipate SpaceX entering the U.S. mobile market. He said the company has to assume SpaceX’s entry will happen, although building a nationwide network would take substantial investment and time.
2. Satellite network limits
Hoettges said SpaceX could use a different business model from traditional telecom operators, but satellite services alone could not replace terrestrial networks, particularly in cities and indoors. T-Mobile was Starlink’s first direct-to-cell partner, but Deutsche Telekom wants alternatives and does not want a monopoly in satellite services.
3. Quarterly results
Deutsche Telekom reported third-quarter earnings above expectations, raised its 2026 outlook and said it planned a share buyback of up to €2 billion in 2027.
