- SpaceX is reportedly keen on a Starlink mobile network
- The company might try and build out its own infrastructure
- Analysts believe a carrier deal is going to 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 — though not everyone is convinced that the company will be able to make much of a dent in the market.
According to the Financial Times, SpaceX has 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.
This wouldn’t be a satellite-based network though — that wouldn’t be able to offer enough capacity on its own. The thinking is that SpaceX plans to build out its own terrestrial infrastructure, and indeed has already paid $17 billion to EchoStar for a chunk of wireless spectrum licences.
And the big three carriers have so far refused to do Mobile Virtual Network Operator (MVNO) deals with SpaceX, though some analysts are of the opinion that agreements may be worked out eventually — possibly with the EchoStar spectrum as leverage.
Satellites and broadband
Setting up a Starlink Mobile MVNO, purchasing an existing MVNO, or even acquiring an existing carrier are all options on the table for SpaceX, according to current speculation. All of those paths would seem to be easier than building new cell towers and base stations.
Analyst David Barden, from New Street Research, told the FT that it would be “incredibly hard” for SpaceX to build its own networks in a “saturated” market like the US. However, he also agrees that this might be a negotiating tactic SpaceX is using to get the existing networks to cut a deal.
SpaceX and Starlink are clearly keen on expanding their communications offerings, with next-gen satellites in the pipeline, and all of the top-end smartphones available to buy can now connect to these satellites without any extra hardware.
Add in the growing Starlink broadband business and the reported terrestrial network capacity as well, and we could be looking at a very comprehensive offering from Starlink in the not-too-distant future.
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