SpaceX in talks over 80,000 cell sites to build new wireless network - Bloomberg

SpaceX's shares experienced a 2% increase in early U.S. trading following a Bloomberg News report that the aerospace company is in talks to access over 80,000 cell sites across the United States. This development suggests a significant step towards establishing a fourth nationwide wireless carrier. The company is engaging in negotiations with major tower operators, such as Crown Castle International Corp. (NYSE:CCI), to acquire the necessary physical infrastructure to complement its satellite network. Crown Castle shares surged by more than 7% in premarket trading.

During a recent earnings call, Crown Castle CEO Chris Hillabrant confirmed that while he could not disclose particular client negotiations, the company is actively involved in discussions with all major satellite-based telecommunications providers exploring ground-level deployment. Traditional carriers like AT&T Inc., Verizon Communications Inc., and T-Mobile US Inc. typically lease space on shared infrastructure to manage capital costs, but SpaceX is utilizing a hybrid approach that combines terrestrial cells with its satellite constellation.

The potential leasing agreements are anticipated to be worth billions of dollars, highlighting the extensive scale of the physical network required.

Elon Musk, SpaceX's CEO, has framed this initiative as a direct challenge to established carriers, backed by recent regulatory approvals and strategic spectrum acquisitions. The Federal Communications Commission has granted SpaceX permission to launch 15,000 specialized satellites designed to provide mobile connectivity directly to standard smartphones.

By integrating tens of thousands of ground sites, SpaceX aims to optimize signal density and deliver reliable broadband coverage across dense suburban and urban areas. Furthermore, SpaceX recently acquired low-band spectrum assets, which provide enhanced building penetration and broad geographic reach, acting as a crucial link between its orbital satellite signals and ground-level cellular infrastructure.

The market responded positively to the potential influx of substantial capital into the tower sector.