SpaceX’s has been partnering with mobile carriers like T-Mobile to offer its satellite internet service Starlink to extend the reach of cell networks. But, according to a report from the Washington Post, the company has ambitions to be more than just a partner. Following a major purchase of wireless spectrum earlier this week, it appears everyone is expecting Elon Musk’s company to get into the wireless network business for itself.
On Monday, it was reported that SpaceX was finalizing a deal with satellite communications company EchoStar, the parent company of Dish Network, to buy up $17 billion worth of wireless spectrum. All signs suggest that SpaceX is after that spectrum to help build out Starlink’s 5G network, with the rumored goal to move satellite connectivity for phones beyond just emergency services and access in remote locations to a full-blown mobile network.
Musk hasn’t exactly backed away from the rumors. In an appearance on the All-In Podcast, he claimed the newly acquired spectrum would allow the company to deliver “high-bandwidth connectivity” directly from satellites to connected devices, albeit with a two-year lead time to get everything set up. “The net effect is you should be able to watch videos anywhere on your phone,” he said. That’s a big jump from Starlink’s current network offerings, which is currently only used for sending and receiving texts. The company claims it’ll offer voice calls soon. And that two-year timeline? Take it with a grain of salt, given Musk’s longstanding history of overpromising, but it does at least give some clarity as to his company’s end goal.
As for starting up a network to compete with AT&T, T-Mobile, and Verizon, Musk didn’t rule it out when talking to the All-In guys, who are always more than happy to drink the Kool-Aid unprompted. Musk said that purchasing a mobile network provider like Verizon in the future is “not out of the question.” According to The Washington Post’s reporting, Starlink likely doesn’t have the spectrum to compete in urban environments where volume is massive and competitors have the infrastructure advantage when it comes to handling that traffic. So getting into those spaces may require an acquisition rather than building its own network.
If Musk and SpaceX were to go that route, it’s unlikely they would face regulatory hurdles under the current administration. As WaPo pointed out, Brendan Carr, the chairman of the Federal Communications Commission appointed by Donald Trump, called SpaceX’s spectrum purchase a “potential game changer” for mobile networks. You’re probably not going to see an in-depth review of potential antitrust concerns when the top cop on the beat has pom-poms in his hands.
Everyone Thinks Elon Musk is Going to Build a SpaceX Mobile Network
