SpaceX Plans Starlink Mobile Service to Compete With Verizon, AT&T and T-Mobile

SpaceX announced plans to launch a cellular service as part of its Starlink satellite internet venture, aiming to challenge industry giants Verizon, AT&T, and T-Mobile, according to Reuters. Gwynne Shotwell, SpaceX's president, disclosed that the company intends to build a "true mobile service" using the spectrum it secured from EchoStar in a $19.6 billion acquisition in 2025.

This spectrum will enable SpaceX to extend its direct-to-cell Starlink service with additional ground-based infrastructure, potentially competing with the major U.S. mobile operators. However, industry experts caution that without an MVNO (Mobile Virtual Network Operator) agreement with a leading carrier, SpaceX's challenge to AT&T, Verizon, and T-Mobile would be formidable due to their vast spectrum holdings and reluctance to lease capacity to competitors.

SpaceX intends to launch upgraded Starlink Mobile satellites in 2027, promising a service that is "100 times better" than the current direct-to-cell offering. Following the earnings call, shares of AT&T, T-Mobile, and Verizon experienced a decline of 2 to 4 percent. SpaceX has already collaborated with T-Mobile on the T-Satellite feature, providing direct-to-cell satellite connectivity to customers.