Analysis:SpaceX's spectrum deal still leaves it far from rivaling telecom giants

SpaceX's recent purchase of US airwaves raises doubts about its ability to challenge existing telecom giants. While the company sees the deal as a critical step towards building a mobile network, constructing a true rival to major carriers will require a terrestrial network and likely years of work and billions more. Starlink has found success by offering internet service in rural and sparsely populated areas and changing to easy-to-set-up home packages at competitive prices.

However, mobile networks face challenges in cities, which are technically difficult for satellite connections. Building a network would cost more than $80 billion, and SpaceX's capital demands will increase further with its Starship rocket program, AI infrastructure, and Terafab chip factory. Despite the spectrum acquisition, it's tough to imagine SpaceX completing this within a decade, as the big three spent about $650 billion in capital expenditures over the past decade to build networks that were already considered complete.