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SpaceX Reportedly in Talks to Lease 80,000 U.S. Telecom Base Stations, Aims to Build Fourth-Largest National Mobile C...
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SpaceX is in talks with major U.S. communications base-station operators and plans to obtain usage rights to at least 80,000 ground base stations across the United States in order to build a nationwide mobile communications network. Information disclosed on October 22 says the company is discussing lease agreements with infrastructure companies such as Crown Castle, and the potential transaction value could reach several billion dollars. If the plan moves forward, SpaceX will directly challenge the three traditional carriers AT&T, Verizon, and T-Mobile.
This arrangement builds on existing resources. SpaceX has received approval from the U.S. Federal Communications Commission to deploy 15,000 direct-to-cell satellites and has acquired low-band radio spectrum assets. Low-band signals have broad coverage and strong penetration, making them suitable for wide-area mobile communications; satellites can provide supplementary coverage in areas that traditional base stations find difficult to cover.
Under the concept, SpaceX will combine its satellite network with ground base stations to form a hybrid communications infrastructure. Ground facilities will handle high-density communications demand in cities and suburbs, while the satellite system will supplement coverage in remote areas. Traditional carriers usually lease communications towers and equipment space to build networks; SpaceX also plans to adopt a similar model to reduce the cost of building nationwide sites from scratch.
Crown Castle CEO Chris Hillabrant did not directly respond to the negotiations with SpaceX on the earnings conference call, but confirmed that the company is in contact with all major satellite communications service providers exploring ground communications deployments. Because the potential leased sites exceed 80,000, the total agreement value could reach several billion dollars, while the specific term, number of sites, and funding arrangements remain undetermined.
The capital market reacted quickly. On October 22, Crown Castle's stock rose 0.23% during regular trading and closed at $78.83, then rose about 8.7% after hours to $85.67. SpaceX's stock rose only slightly by about 1% after hours, after falling 9.13% during regular trading.
If base-station leasing, spectrum deployment, and the integration of satellite and ground networks proceed smoothly, SpaceX is expected to become the fourth major mobile carrier in the United States with nationwide network coverage capability. For infrastructure companies such as Crown Castle, large-scale leasing will bring long-term demand; for SpaceX, this is a key step from being a satellite broadband provider toward becoming an integrated mobile communications carrier. However, the plan is still in the negotiation stage, and whether it can ultimately form a nationwide commercial network remains to be seen.
