- SpaceX is reportedly keen on a Starlink cellular network
- The company can try to build its own infrastructure
- Analysts believe a carrier deal will be more likely
SpaceX is reportedly planning to launch a Starlink-branded mobile network to compete with Verizon Wireless, AT&T and T-Mobile in the US – although not everyone is convinced the company will be able to make much of a dent in the market.
According to the Financial Times, SpaceX recently shared its ambitions with investors and intends to offer contracts to individual consumers. It already partners with T-Mobile in the US to provide emergency satellite messaging services.
However, this would not be a satellite-based network – it would not be able to offer enough capacity on its own. The thinking is that SpaceX plans to build its own ground-based infrastructure, and in fact has already paid $17 billion to EchoStar for a chunk of wireless spectrum licenses.
And the three major carriers have so far refused to make Mobile Virtual Network Operator (MVNO) deals with SpaceX, although some analysts believe deals could eventually be worked out — possibly with the EchoStar spectrum as leverage.
Satellites and broadband
Setting up a Starlink Mobile MVNO, buying an existing MVNO or even acquiring an existing operator are all options on the table for SpaceX, according to current speculation. All of these paths seem to be easier than building new cell towers and base stations.
Analyst David Barden of New Street Research told the FT it would be “incredibly difficult” for SpaceX to build its own networks in a “saturated” market like the US. However, he also agrees that this could be a negotiating tactic SpaceX is using to get the existing networks to come to an agreement.
SpaceX and Starlink are clearly keen to expand their communications offerings with next-generation satellites in the pipeline, and all the best smartphones available can now connect to these satellites without any additional hardware.
Also add in the growing Starlink broadband business and the reported terrestrial network capacity and we could be looking at a very comprehensive offering from Starlink in the not too distant future.
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