SpaceXSI is coming for Verizon, T-Mobile, AT&T in the US
What's the story
SpaceXSI is looking to enter the mobile carrier market by leveraging at least 80,000 cell sites in the US. The plan comes as part of its strategy to take on established players like Verizon, T-Mobile, and AT&T. According to Bloomberg, the Elon Musk-owned company is in talks with Crown Castle Inc, one of America's largest cell tower owners.
Business model
A look at SpaceX's plan
SpaceX's plan is to combine a network of cell towers with its constellation of direct-to-cell satellites.
This would give the company access to nearly half of the 158,500 operational cell towers in the US.
Crown Castle CEO Chris Hillabrant said during an earnings call that they are "talking to all parties" about potential partnerships, including SpaceX and Amazon.
Expansion
Recent developments in SpaceX's mobile network project
Earlier this month, SpaceX acquired a portfolio of low-band spectrum licenses and got FCC approval to deploy 15,000 upgraded V2 Starlink Mobile satellites.
The company says these moves will help Starlink Mobile become a "major" carrier in the US.
Last year, SpaceX also bought 2GHz spectrum from EchoStar for $17 billion.
Cost implications
Costs and challenges of building a nationwide terrestrial network
TD Cowen estimates that building a nationwide terrestrial network would cost over $80 billion.
It would take years and billions in extra spending to complete.
The 80,000 sites SpaceX is targeting would be half of the purpose-built cell towers operational in the US last year, according to the Wireless Infrastructure Association.