SpaceX Plans to Become a Major US Mobile Carrier With Starlink Mobile
Elon Musk's SpaceX says it wants to turn Starlink Mobile into a major US mobile carrier. It is buying spectrum licenses, has a deal with Qualcomm and is reportedly in talks over access to cell towers.
SpaceX, the space company run by Elon Musk, has announced its intention to make its Starlink Mobile service a major mobile carrier in the United States, putting it in direct competition with the country's largest operators: AT&T, Verizon and T-Mobile. The company has already deployed thousands of satellites that connect directly to mobile phones, but its next task is to build a 5G network on the ground.
Spectrum licenses and partners
SpaceX has acquired a portfolio of low-band spectrum licenses. They include up to 14 megahertz of paired spectrum in the 800 MHz band, which the company says will let the signal penetrate walls and buildings. The deal still needs approval from the US Federal Communications Commission (FCC). SpaceX previously bought 2GHz spectrum from EchoStar to strengthen its direct-to-device service.
SpaceX has also signed an agreement with chipmaker Qualcomm, which will deploy its cellular technology across tens of thousands of 5G cell sites starting in 2027.
Towers and possible deals
According to Bloomberg, SpaceX plans to access at least 80,000 cell sites and is in talks with Crown Castle, one of the largest cell tower owners in the US. Per Reuters, that would give it access to half of the 158,500 operating towers in the country. Crown Castle CEO Chris Hillabrant declined to give customer-specific details but said the company is talking to all parties.
The Washington Post reported that Musk discussed acquiring the budget carrier Boost Mobile, or accessing its network, with EchoStar chairman Charlie Ergen last month. Boost Mobile's network currently runs on T-Mobile and AT&T infrastructure, so SpaceX may need permission from both.
Industry reaction
SpaceX president Gwynne Shotwell said on the company's first earnings call that it also intends to build a terrestrial network and win over a share of existing carriers' customers. Tim Höttges, CEO of Deutsche Telekom, T-Mobile's parent company, said he takes the plans very seriously but that they could cost Musk more than $200 billion.
