SpaceX plans to build a full mobile service in the United States, placing Elon Musk’s company in direct competition with AT&T, T-Mobile and Verizon.
The company outlined its ambitions during an investor call on Tuesday. SpaceX intends to expand beyond Starlink’s existing satellite connectivity by building ground-based infrastructure and offering a complete mobile service directly to consumers.
SpaceX acquired 65MHz of wireless spectrum licenses from EchoStar through two transactions worth a combined $19.6 billion.
The spectrum includes terrestrial components, which allow SpaceX to use it for both satellite and ground-based mobile services. SpaceX President Gwynne Shotwell said the company intends to build the hardware and systems required to turn Starlink into a true mobile network.
SpaceX could combine its Starlink satellite network with terrestrial infrastructure to provide broader coverage across the United States. Its existing direct-to-device service mainly supplements traditional networks by providing limited connectivity in areas without standard cellular coverage.
The new approach would allow SpaceX to compete more directly for customers instead of simply supporting established operators.
Shares of Verizon, AT&T and T-Mobile fell between 2.2% and 4% following the announcement, reflecting investor concerns about SpaceX entering the wireless market.
However, several analysts remain doubtful that SpaceX can quickly become a serious competitor. The largest US carriers have spent hundreds of billions of dollars building and improving their networks over the past three decades.
SpaceX would need years of significant investment to build comparable nationwide infrastructure. It also owns far less spectrum than the three established operators.
One alternative would be securing a Mobile Virtual Network Operator agreement. Such an arrangement would allow SpaceX to lease network capacity from an existing carrier while selling mobile services under its own brand.
However, established carriers may hesitate to support a company that plans to take their customers.
SpaceX has not revealed the cost or full details of its network plans. Still, company officials told investors they have “great and new ideas” for building the service efficiently without copying the costly infrastructure model used by traditional carriers.
Get the latest tech news, telecom insights, and product launches wherever you prefer.
Add ProPakistani to Preferred Sources and see more of our stories in Google Search and Top Stories.
Technology and Automotive Specialist covering the latest cars, smartphones, AI breakthroughs, and...
Shares
