SpaceX has partnered with Qualcomm to obtain network technology for its forthcoming Starlink Mobile cellular carrier service, which would compete with AT&T, Verizon, and T-Mobile.
Space Exploration Technologies (NASDAQ:SPCX) recently announced a new partnership under which Qualcomm (NASDAQ:QCOM) will provide it with the network technology it needs to launch its forthcoming Starlink Mobile cellular carrier service.
The deal moves SpaceX closer to attempting to directly compete with AT&T (NYSE:T), Verizon (NYSE:VZ), and T-Mobile (NASDAQ:TMUS).
To take on the established mobile carriers, SpaceX will rely in part on Qualcomm's Dragonwing cellular infrastructure hardware and software for base stations across tens of thousands of new cellular sites.
Launching Starlink Mobile will be a major endeavor, as the business will need a massive footprint of ground-based cellular stations to compete with the established carriers. It won't be able to rely entirely on its current satellites for all services. It also means that SpaceX will likely need to eventually rent tower space from American Tower or its peers.
Carving out space in the postpaid cellular market (which excludes tablet and smartwatch connections) won't be easy. Here is how many postpaid connections T-Mobile, AT&T, and Verizon added during the third quarter:
| Carrier | Net Additions in Q3 |
|---|---|
| Verizon | 406,000 |
| T-Mobile | 274,000 |
| AT&T | 379,000 |
Data sources: Verizon, T-Mobile, and AT&T.
The most recent would-be challenger to the major carriers didn't fare so well: Boost Mobile was once owned by Sprint, but was eventually sold to Dish as part of an agreement to secure FCC and Justice Department approval for the 2020 merger of T-Mobile and Sprint. Dish later merged with EchoStar, bringing Boost along with it. Boost Mobile still exists, but it now operates only as a mobile virtual network operator (MVNO), meaning it rents spectrum from AT&T and other carriers, and sells plans under its Boost Mobile brand.
The Qualcomm partnership gives SpaceX the network technology needed to launch a terrestrial mobile service, but entering the postpaid cellular market means competing with established carriers that each have well over 100 million wireless mobile subscribers and continue adding hundreds of thousands of postpaid connections per quarter.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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