SpaceX is looking to move beyond satellite internet and build its own terrestrial mobile network, which could make Starlink a direct competitor to the largest US telecom operators — Verizon, AT&T and T-Mobile.
SpaceX is looking to move beyond satellite internet and build its own terrestrial mobile network, which could make Starlink a direct competitor to the largest US telecom operators — Verizon, AT&T and T-Mobile.
This was reported by Reuters, citing a statement by SpaceX President Gwynne Shotwell during a teleconference with investors. The intention to create a full-fledged service appeared after SpaceX signed an agreement with EchoStar to purchase licenses for 65 MHz of radio frequency spectrum worth $19.6 billion.
“The spectrum we acquired from EchoStar does have terrestrial components, so we definitely intend to build out the terrestrial network,” said Gwynne Shotwell, adding that the company expects to attract a significant number of subscribers from the three largest operators in the United States.
Shares of Verizon, AT&T and T-Mobile fell 1-2.4% in premarket trading after the plans were announced. Starlink revenue remains the primary source of funding for SpaceX's large-scale projects in artificial intelligence, data center development and next-generation rocket development.
Market experts warn that creating a full-fledged operator will require years of investment. New Street Research analyst David Barden noted that the company will find it difficult to compete with 65 MHz of spectrum, compared to about 1,000 MHz owned by traditional operators. Hargreaves Lansdown notes that a potential solution for a quick launch could be to lease networks under the model of a virtual mobile operator (MVNO), but incumbents are unlikely to want to give up bandwidth to a future competitor.
Previously, SpaceX focused exclusively on cooperation with traditional operators. In particular, as part of a partnership with T-Mobile, the company developed direct-to-cell satellite connectivity to provide communications in areas without cell tower coverage.
Recall that in early summer, Ukrainian operator Kyivstar officially launched sales of Starlink high-speed satellite Internet services for corporate clients and government institutions. At the first stage, companies can already order connection and activation of services, while the delivery of the terminals themselves will begin in the near future.
In April, Kyivstar received permission from the regulator and began testing Light Data , the next stage of Starlink Direct to Cell technology. The first stage allowed sending SMS without a terrestrial network, and the next allowed messengers and OTT applications to work via a satellite channel.
