SpaceX targets mobile market: Starlink to challenge Verizon and AT&T with its own network

SpaceX, Elon Musk's space company, is planning to launch a consumer mobile network under the Starlink brand to compete with Verizon, AT&T, and T-Mobile in the United States. According to a Financial Times report, the company has shared these ambitions with investors, aiming to offer direct contracts to users. Starlink already provides emergency satellite messaging services in partnership with T-Mobile, but the new project goes much further.

Terrestrial infrastructure and $17 billion spectrum

This would not be a purely satellite-based network; satellite capacity alone would not suffice for mass data traffic. SpaceX plans to build its own terrestrial infrastructure, leveraging wireless spectrum purchased from EchoStar for $17 billion. This would allow the company to offer a service comparable to traditional carriers, with broad coverage and adequate speeds.

From emergency to direct competition

SpaceX already has experience in the sector with satellite emergency services for T-Mobile, but now aims to become a full-fledged operator. The evolution of mobile communications is also reflected in recent updates like Google Messages introducing custom chat themes for Android users. SpaceX could capitalize on the growing integration between satellites and smartphones, as current high-end devices support satellite connectivity without additional hardware.

Challenges in a saturated market

According to analyst David Barden of New Street Research, building a proprietary network in the US would be "incredibly hard" due to market saturation. Barden suggests that SpaceX might be using this strategy as a negotiating tactic to secure MVNO (Mobile Virtual Network Operator) agreements with major carriers. Other options include purchasing an existing MVNO or a traditional operator. However, some experts believe a carrier deal is more likely, given that SpaceX holds the EchoStar spectrum as leverage.

The future of Starlink connectivity

With next-generation satellites in development and a growing user base for Starlink broadband, the mobile offering could become a key component. For more on the Starlink ecosystem, refer to the Wikipedia page dedicated to Starlink. SpaceX appears determined to expand its presence in telecommunications, aiming for global coverage and integrated services. If the plan materializes, the US mobile landscape could face a major shakeup.

Source: https://www.techradar.com/phones/spacex-could-be-planning-to-offer-a-starlink-mobile-network-for-consumers-reports-say-but-some-experts-think-its-pie-in-the-sky