SpaceX wants Starlink to become a full mobile service, taking on Verizon and T-Mobile

SpaceX plans to turn Starlink into a full mobile service that combines satellite coverage with ground-based cellular infrastructure, putting the company on a longer path toward competing with Verizon, AT&T, and T-Mobile in the United States.

Reuters reports that SpaceX President Gwynne Shotwell confirmed the company will build terrestrial infrastructure using wireless spectrum acquired from EchoStar. SpaceX paid $19.6 billion for 65 MHz of spectrum licenses, which support both satellite and ground-based mobile services.

Shotwell said SpaceX wants to make Starlink a true mobile service and expects to attract customers from the three largest US carriers. She also said the company has new ideas for lowering infrastructure costs, including smaller base stations connected to Starlink dishes instead of relying only on traditional cell towers.

Starlink faces major network challenges

SpaceX already works with T-Mobile on T-Satellite, which connects compatible smartphones to Starlink satellites when users travel outside normal cellular coverage. However, a nationwide mobile network would require much broader coverage, more spectrum, and extensive ground infrastructure.

Analysts said SpaceX would struggle to compete without an MVNO agreement that lets it use an established carrier network. Verizon, AT&T, and T-Mobile own far more spectrum and have spent decades building cell sites, upgrading networks, and adding customers.

SpaceX plans to launch next-generation Starlink Mobile satellites in 2027, with service expected to become 100 times better by the end of that year. The company has not shared pricing, launch markets, or a detailed rollout schedule.

Shares of Verizon, AT&T, and T-Mobile fell after SpaceX discussed its mobile plans, although Starlink still faces years of investment before it can operate as a direct nationwide competitor.