SpaceX is moving to establish Starlink Mobile as a major US wireless carrier, setting up a direct challenge to AT&T, Verizon, and T-Mobile. The Elon Musk-owned company has already deployed thousands of direct-to-cell satellites, and its next task is building a terrestrial 5G network to pair with that constellation. As part of the effort, SpaceX has signed a multi-year deal with Qualcomm to deploy its cellular technology across tens of thousands of 5G cell sites, with the first deployments set for 2027.
The agreement brings Qualcomm's Dragonwing technology into SpaceX's nationwide buildout. SpaceX says the combination of its satellite-to-mobile constellation and a ground-based mobile network will let it compete directly with the three national carriers. The company has also acquired a portfolio of low-band spectrum licenses, which it says will pave the way for Starlink Mobile to become a major US carrier once the Federal Communications Commission approves the deal. The licenses include up to 14 megahertz of paired spectrum in the 800 MHz band, which SpaceX says will allow signals to penetrate walls and buildings. SpaceX previously acquired 2GHz spectrum from EchoStar to bolster its direct-to-device service.
SpaceX is reportedly also exploring an acquisition of Boost Mobile to launch its service through the budget carrier. According to The Washington Post, Musk discussed a potential agreement with Charlie Ergen, chairman of Boost Mobile parent company EchoStar, last month. The reported deal would involve SpaceX acquiring Boost Mobile or accessing its network. Boost Mobile's network currently runs on T-Mobile and AT&T, meaning SpaceX may need permission from both carriers to launch service.
Separately, Bloomberg reported that SpaceX plans to access at least 80,000 cell sites as part of its effort to compete with Verizon, T-Mobile, and AT&T. Sources told the publication that SpaceX is in talks with Crown Castle Inc., one of the nation's largest cell tower owners. Citing Reuters, the report said such a move would give SpaceX access to half of the 158,500 cell towers currently operational in the US. Asked on an earnings call about a potential partnership with SpaceX, Amazon, or other satellite services, Crown Castle CEO Chris Hillabrant declined to discuss specific customers but said the company can be assumed to be talking to all parties.
Gwynne Shotwell, SpaceX's president, said the spectrum purchased from EchoStar includes terrestrial components and that the company intends to build out that side of the network. She said customers will have capacity from the satellites themselves along with a terrestrial buildout of the hardware and systems needed for a true mobile service.
The plans have drawn attention in the telecom industry. Tim Höttges, CEO of T-Mobile parent company Deutsche Telekom, said he takes SpaceX's ambitions very seriously but estimated it could cost Musk more than $200 billion to carry them out.
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