Today, I’m talking with Walter Piecyk, a partner and analyst at LightShed Partners who covers tech, media, and telecom, about SpaceX’s recently announced plan to become a major wireless carrier.
Last week, SpaceX agreed to buy a big chunk of low-band spectrum to expand the Starlink network, spectrum that’s been traded around the telecom business for decades now. SpaceX’s ambitious plan is to use that spectrum to help build “the world’s most advanced mobile network.”
SpaceX is teaming up with Qualcomm to build out its nationwide mobile network. Under the multi-year deal, SpaceX will bring Qualcomm’s Dragonwing technology to “tens of thousands” of 5G cell sites across the US, with the first deployments set for 2027.
The news of the partnership comes as part of SpaceX’s push to make Starlink Mobile a “major” carrier in the US, competing directly with T-Mobile, AT&T, and Verizon. The Elon Musk-owned company has already snapped up a swath of spectrum, while recent reports suggested that SpaceX was exploring an acquisition of Boost Mobile.
SpaceX has discussed a deal with Boost Mobile to launch its own service through the budget-friendly carrier, according to a report from The Washington Post. The deal, which comes as SpaceX aims to make Starlink a “major” mobile carrier, reportedly involves the Elon Musk-owned company acquiring Boost Mobile or accessing its network.
Musk discussed the potential agreement with Charlie Ergen, chairman of Boost Mobile parent company EchoStar, last month, as reported by The Washington Post. Boost Mobile’s network is currently powered by T-Mobile and AT&T, meaning SpaceX may need permission from the two carriers to launch its service.
SpaceX plans to access at least 80,000 cell sites as part of efforts to compete directly with Verizon, T-Mobile, and AT&T, according to a report from Bloomberg. Sources tell the publication that SpaceX is in talks with Crown Castle Inc., one of the nation’s largest cell tower owners.
The move would give SpaceX access to half of the 158,500 cell towers currently operational in the US, according to Reuters. When asked about a potential partnership with SpaceX, Amazon, or other satellite services during an earnings call on Wednesday, Crown Castle CEO Chris Hillabrant said, “I don’t think I want to get into customer-specific detail, but you can assume that we’re talking to all parties.” SpaceX plans to pair a network of cell towers with its constellation of direct-to-cell satellites.
SpaceX has acquired a portfolio of low-band spectrum licenses — a move the company says “will pave the way” for its Starlink Mobile service to become a “major” US carrier. When the Federal Communications Commission signs off on the deal, SpaceX says it will deploy its new architecture that combines its satellite-to-mobile constellation with a terrestrial mobile network, directly competing with T-Mobile, AT&T, and Verizon.
The licenses include up to 14 megahertz of paired spectrum in the 800 MHz band, which SpaceX says will allow Starlink Mobile’s signal to penetrate through walls and buildings. SpaceX previously acquired 2GHz spectrum from EchoStar as part of efforts to bolster its direct-to-device service.
SpaceX is preparing to build a terrestrial mobile network to “acquire quite a few” of the customers now subscribed to T-Mobile, AT&T, and Verizon. The message to compete head-to-head with the US carriers was delivered by SpaceX president Gwynne Shotwell and CEO Elon Musk during the Q&A section of the company’s first earnings call.
“The spectrum that we purchased from EchoStar does have terrestrial components, so we definitely intend to build out the terrestrial component,” said Shotwell. “You will have not only the capacity from the satellites themselves, but you will have a buildout of the terrestrial, basically the hardware and systems necessary to make a true mobile service exactly what you want it to be.”
