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SpaceX is coming for T-Mobile, AT&T and Verizon
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- DeepHorus
SpaceX is preparing to challenge America’s dominant wireless carriers directly, with president Gwynne Shotwell and CEO Elon Musk outlining plans to build a terrestrial mobile network. During the company’s first earnings call, Shotwell said SpaceX intends to “acquire quite a few” customers from T-Mobile, AT&T, and Verizon. The declaration signals a major escalation beyond its existing Starlink Mobile service, which currently supplements carrier networks in dead zones.
SpaceX already operates Starlink Mobile, a direct-to-device service that provides limited messaging and data through partnerships with carriers like T-Mobile. However, the company now aims to offer a standalone, nationwide service. That ambition is enabled by spectrum purchased from EchoStar, which includes terrestrial components. Shotwell confirmed that SpaceX will build out the terrestrial hardware and systems needed to create a true mobile service.
The company acquired 65 megahertz of spectrum from EchoStar, far less than the holdings of AT&T, T-Mobile, or Verizon individually. Still, Shotwell believes the service will be superior, especially with next-generation V2 Starlink satellites launching next year. She described the upcoming capacity as “100 times better” than current offerings.
To overcome its spectrum disadvantage, SpaceX plans a creative infrastructure approach. Shotwell hinted at placing small cellular base stations on the poles that hold Starlink broadband dishes, creating a network of femtocells across the country. Musk elaborated that these small stations, essentially Starlink dishes with mobile spectrum connectivity, can be deployed widely without the costly, large base stations used by traditional carriers. He argued this could provide better and higher bandwidth than current cellular providers.
The US wireless market is estimated to be worth around $600 billion annually, according to Shotwell. SpaceX clearly intends to capture a significant share, predicting that its service will attract customers seeking better coverage and performance. The direct-to-consumer model would bypass traditional carriers entirely.
Industry analysts may question whether 65 MHz of spectrum is sufficient for a nationwide network, but SpaceX’s unconventional femtocell strategy and upcoming satellite upgrades could disrupt the status quo. The company’s first earnings call, held recently, gave investors a glimpse of these ambitious plans. Shotwell also teased “great and new ideas” for efficient ground-network deployment.
Looking ahead, SpaceX’s entry into the mobile market could intensify competition and drive innovation. With V2 satellites and terrestrial buildout on the horizon, the company is positioning itself as a formidable alternative to the Big Three. Whether it can truly deliver on its promises remains to be seen, but the message is clear: SpaceX is coming for wireless customers nationwide.
