SpaceX weighs standalone Starlink mobile service
What's the story
SpaceX, Elon Musk's aerospace company, is planning to launch a direct-to-consumer Starlink mobile service in the US, according to Financial Times. The move could take on industry giants like Verizon and AT&T. The company already provides supplemental coverage with T-Mobile but is now considering launching a standalone Starlink retail product. This was revealed by SpaceX President Gwynne Shotwell during an IPO roadshow.
Market impact
It could shake up US communications industry
The potential launch of a standalone Starlink mobile service could shake up the $1.6 trillion US communications industry, according to brokerage firm Oppenheimer. This comes after SpaceX acquired significant wireless spectrum licenses from EchoStar for its Starlink satellite network last year, at a total cost of $19.6 billion. These acquisitions give SpaceX the ability to rapidly deploy an affordable direct-to-cell service using EchoStar's wireless airwaves.
Subscriber base
Starlink already has over 10 million subscribers
Starlink, SpaceX's satellite broadband unit, already has over 10 million subscribers. This impressive growth is a major factor behind the company's record valuation. The potential launch of a standalone mobile service could further boost this subscriber base. However, it remains to be seen how this new venture will compete with established players in the market like Verizon and AT&T.