SpaceX and Qualcomm sign multiyear deal for Starlink Mobile infrastructure

SpaceX has signed a multiyear agreement with chipmaker Qualcomm to provide network technology for Starlink Mobile, a service intended to compete with U.S. mobile carriers Verizon, AT&T, and T-Mobile.

Infrastructure and Technology

According to Qualcomm, the deal involves supplying radio equipment, baseband units, and software to build out terrestrial network infrastructure. The company stated the equipment will be deployed across tens of thousands of macro cell sites in the United States. Qualcomm said the terrestrial network will "complement Starlink’s satellite capabilities," with a planned rollout to begin next year.

Qualcomm noted that the equipment is designed to provide a "flexible foundation for a multi-band network, which can be deployed in stages." The initial rollout will focus on terrestrial 5G, utilizing advanced beamforming technology to direct wireless signals toward users.

"Together with SpaceX, we are building world-leading cellular infrastructure in the United States, advancing 5G today, with an opportunity to lay the foundation for AI-native 6G in the years ahead," said Durga Malladi, an executive vice president at Qualcomm.

Strategic Expansion

SpaceX currently beams Starlink broadband internet to millions of subscribers via satellites in low-earth orbit. However, the company's consumer mobile direct-to-device services have been limited because the satellite network cannot provide all the voice, video, and data coverage offered by competitors on popular smartphones.

To expand its terrestrial presence, SpaceX has taken several steps:

• Announced an agreement to purchase a nationwide spectrum portfolio in the 800 MHz band last month.
• Reported by the Washington Post to be in talks to acquire EchoStar’s Boost Mobile.
• Partnering with Qualcomm to use Dragonwing cellular infrastructure hardware and software in base stations.

Qualcomm described the agreement as its "biggest 5G deal yet." While SpaceX plans to use the technology to establish tens of thousands of new cell sites, the company has not announced specific partners among cell tower companies or the exact number of new towers required.

Why it matters

SpaceX is currently valued at close to $2 trillion, following what was the largest IPO on record in June. Starlink is a significant portion of the company's business, accounting for 36% of its revenue in the third quarter and 85% of its operating profit. This deal marks a significant move for Qualcomm, which is seeking to diversify beyond mobile device chips into the telecom infrastructure market, where it will compete with Marvell, Broadcom, and Intel.

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Sources

• cnbc.com: SpaceX strikes deal with Qualcomm for mobile network infrastructure
• streetinsider.com: Qualcomm signs major 5G infrastructure deal with SpaceX for Starlink Mobile network

This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.