SpaceX Wants to Become a Mobile Carrier to Fight AT&T and Verizon
Satellite internet was just the warm-up. Now Elon Musk wants cell towers in the city and a smartphone in everyone's pocket to completely bypass traditional telecom.
SpaceX is preparing to bid in the upcoming 2027 FCC C-band spectrum auction while scouting direct spectrum deals with traditional mobile carriers.
During a recent investor briefing, president Gwynne Shotwell showcased a smartphone-like prototype AI handheld device and confirmed intent to build physical terrestrial networks.
Wall Street estimates Starlink mobile revenue will reach $15 billion this year, with internal pitch decks projecting a potential market value of $740 billion.
To overcome physical obstacles like thick walls and heavy tree foliage, engineering teams are testing a hybrid satellite-terrestrial architecture to plug coverage gaps.
The financial entry barrier remains steep, considering legacy telecom players poured over $110 billion into low-band spectrum over the past decade.
SpaceX already paid $17 billion to EchoStar for 50 MHz of spectrum licenses, funding half the transaction through equity shares.
Traditional cellular giants now face a competitor capable of printing equity to buy up radio waves at will. The battle for urban spectrum is turning into a multi-hundred-billion-dollar game of chicken where subscribers end up paying for the collateral damage.
Source: Semafor
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