SpaceX plans Starlink Mobile to rival AT&T, T-Mobile, and Verizon
What's the story
SpaceX is gearing up to take on the big three US wireless carriers, AT&T, T-Mobile, and Verizon, with its Starlink Mobile service. The company has been working with traditional mobile carriers to fill coverage gaps in remote areas with Starlink satellite capacity. However, now SpaceX is buying spectrum licenses to offer its own terrestrial service and compete directly against these major players.
Service expansion
SpaceX President confirms plans to build out terrestrial service
SpaceX President Gwynne Shotwell confirmed on an earnings call that the company intends to build out the terrestrial component of Starlink Mobile.
She said, "The spectrum that we purchased from EchoStar does have terrestrial components, so we definitely intend to build out the terrestrial component."
This would include hardware and systems needed to create a true mobile service.
Market strategy
SpaceX anticipates quite a few customers from major carriers
Shotwell expressed confidence in Starlink Mobile's ability to attract customers from major carriers.
She said, "AT&T, Verizon, and T-Mobile make roughly $600 billion a year combined... I anticipate us to be able to acquire quite a few of their customers because I think our service will be better."
The company plans to eliminate dead zones using satellites in orbit and provide better service during natural disasters.
Network strategy
Shotwell says femtocells will be deployed around the country
Instead of building large cell towers, SpaceX plans to deploy "little femtocells around the country," Shotwell said.
These would be cellular base stations on the gear that holds a Starlink broadband dish.
Elon Musk suggested future Starlink dishes could double as cellular base stations, providing connectivity directly to cellphones on the ground and potentially better bandwidth than current cellular providers.
Capacity expansion
Massive increase in capability for Starlink Mobile
SpaceX is acquiring 65MHz of nationwide spectrum licenses from EchoStar, which include rights for both terrestrial and satellite deployments.
The company said it will have access to this spectrum before the deal is finalized by November 30, 2027.
Shotwell said the current Starlink Mobile system uses 5MHz through partnerships with telco providers and that the new acquisition will provide a "massive increase in capability."
Satellite launch
Next-gen satellites to boost connectivity by late 2027
SpaceX has deployed about 650 Direct to Cell (D2C) satellites under existing authorizations and is seeking FCC approval to launch up to 15,000 next-gen mobile satellites.
The company told the Canadian government it "will begin launching its next-generation Starlink direct-to-device satellites with service beginning by late 2027," and launch thousands of these upgraded cellular satellites by the end of 2028.