Everyone Thinks Elon Musk Will Build a Mobile Network with SpaceX
SpaceX has been partnering with mobile companies like T-Mobile to offer its Starlink satellite internet service in order to extend the reach of cellular networks. But according to a, the company aims to be more than just a partner. After a major wireless spectrum acquisition this week, it seems like everyone is expecting Elon Musk’s company to enter the wireless network business on its own.
The deal with EchoStar
On Monday, it was reported that SpaceX was finalizing a deal with EchoStar, a satellite communications company that owns Dish Network, to purchase wireless spectrum for $17 billion. Everything suggests that SpaceX is seeking that spectrum to build the Starlink 5G network, and there are rumors that the goal is to expand satellite connectivity for phones beyond emergency services and access in remote locations, in order to build a cellular network.
Musk hasn’t shied away from the rumors, say. He appeared on, stating that the spectrum they acquired will allow the company to provide “high bandwidth connectivity” directly from satellites to connected devices, although it will take about two years to get everything set up. “The end result is that you will be able to watch videos anywhere, on your phone,” he said. It’s a huge leap from Starlink’s current offering, which is currently only used for sending and receiving messages. The company that it will soon offer voice calls. What about those two years timeframe? It needs to be taken with a grain of salt, given Musk’s history of, but at least it gives us a glimpse of what his company’s ultimate goal is.
A new competitor?
As for building a network to compete with AT&T, T-Mobile, and Verizon, Musk didn’t rule it out when talking to the folks at All-In. He said that buying a mobile network provider like Verizon in the future “is not something that is out of the question.” According to the Washington Post report, Starlink probably doesn’t have the spectrum to compete in urban environments where volume is massive and competitors have the infrastructure advantage to support that traffic. So entering those spaces would likely require an acquisition rather than building its own network.
If Musk and SpaceX were to go down that path, it is unlikely that the current government will impose regulations that hinder their intention. It has been noted that Brandan Carr, who chairs the Federal Communications Commission and was appointed by Donald Trump, said that SpaceX’s spectrum acquisition “could potentially change the game” for mobile networks. That’s why we may not see a deep review of antitrust regulations.
This article has been translated from Gizmodo US by Romina Fabbretti. you can find the original version.
